The Panamanian government has vowed to return US$500,000 of unused Taiwan aid originally earmarked for a children's museum, according to the Ministry of Foreign Affairs yesterday.
However, ministry spokesman Michel Lu (
"This case was one of cooperation. As such, there needs to be understanding [between the two parties] and the maintenance of interaction," Lu told the Taipei Times yesterday.
Ministry donations made during former president Mireya Moscoso's administration had originally been intended for construction on a children's museum called the Toucan Museum. However, Lu yesterday revealed that the museum had been completed with only a portion of the aid, and that Panama had promised Ambassador David Hu (
Recent reports from Panama have pointed to the improper use of Taiwan's donations in the country.
A report from the DPA wire service earlier this week said a team of auditors, appointed by President Martin Torrijos after taking office this month, had uncovered "irregularities" involving aid from Taiwan to the previous administration.
According to the report, Torrijos' investigation found that of the US$45 million donated by Taiwan to the Southern Sea Foundation, an organization created by the Panamanian government to promote social programs, US$10 million had been used to open four investment accounts and a savings account at Panabank. The report also confirmed that a portion of the donated funds had been earmarked for the construction of a children's museum.
Media reports also had said that US$6 million allocated to the museum had been remitted by Taiwan to Panama in the last few days of the previous Panamanian government's administration, causing Torrijos to launch an investigation into the matter.
Lu denied the validity of the reports.
"The funds were given earlier on. When President Chen (
While Lu said he did not know exactly when all allocated funds had been transferred, he pointed out that construction could not have been completed without the aid.
Lu also dismissed speculation that the ministry planned to replace Hu in connection with the alleged last-minute donations to the Toucan Museum.
Lu characterized Hu's interaction with the new Panamanian administration as "normal." Lu also denied that the Panamanian government's probe had been focused on aid from Taiwan, saying that it was an overall investigation into the use of foreign aid in Panama.
Hu, meanwhile, told the Central News Agency that he had not received instructions from the ministry with regard to any changes to his posting. If changes were to be made, however, he said now was an optimal time, given the power shift in Panama and the fact that his posting had lasted three and a half years already.
Panama was also one of four diplomatic allies that did not speak on behalf of Taiwan's membership proposal during the UN General Assembly in New York on Wednesday.
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