Taipei - Former vice premier Chiou I-jen has been arrested on accusations he embezzled a half-million US dollars during his time as Taiwan's intelligence chief, court officials said Friday.

"When he was secretary general of the National Security Council in 2004, the defendant asked the Foreign Ministry for 500,000 US dollars to finance a secret diplomatic mission, which actually was already completed with no more financial need," said Taipei District Court Judge Huang Chun-ming.

Huang, who declined to reveal the nature of the mission, said the Foreign Ministry later gave Chiou the funds in travellers cheques, some of which were later found to be cashed in several overseas casinos.

"To prevent him from tampering with evidence with others, we decided to detain him," Huang said.

In addition to his post as the island's top intelligence official, Chiou has served as secretary general in the Presidential Office and secretary general of the cabinet from 2000 to 2008.

A founding member of the pro-independence Democratic Progressive Party (DPP), Chiou had been the party's secretary general and one of its key decision makers before he joined the government of former president Chen Shui-bian.

Chiou resigned in May to take responsibility for another diplomatic scandal in 2006 in which two businessmen he recommended to the Foreign Ministry allegedly embezzled 30 million US dollars intended to woo Papua New Guinea to switch diplomatic recognition to Taipei from Beijing.

Chiou was questioned by prosecutors Thursday for hours over his alleged role in the 2004 scandal. Prosecutors later sought court permission to detain him, and after questioning by judges for several hours, the court decided to hold him.

The scandal dealt yet another blow to the DPP, whose image has already been tarnished by a string of corruption scandals implicating Chen, who had been the party's chairman.

Chen quit the party in August over a 21-million-US-dollar money-laundering case in which his wife, his son and daughter-in-law were implicated.

Earlier this week, judicial authorities also arrested two senior DPP officials, including a former science park administrator and a magistrate of the southern county of Chiayi, for alleged corruption.

All, including Chen and Chiou, have denied the allegations. (dpa)