Taiwanese prosecutors have been questioning a Singaporean man accused of embezzling $US30 million of diplomatic aid earmarked for Papua New Guinea.
Television footage showed Wu Shih-tsai entering the Taipei district prosecutors office for questioning over his alleged role in the scandal.
Taiwanese authorities allege that Mr Wu and another businessman Ching Chi-ju pocketed the fund intended for use in helping to forge ties with PNG in 2006.
Mr Wu denies the charges.
The Deputy Prime Minister, Chiu I-jen, in a televised apology after the case came to light , said two men had been hired to broker a deal but they had vanished.
PNG set up diplomatic ties with Taiwan in 1999 but its government renounced the deal after only 16 days.
