Taiwan presidential hopeful faces key court verdict

By Ralph Jennings

TAIPEI (Reuters) - A court verdict set for Friday could trip up Taiwan's main opposition in its bid to retake the presidency if candidate Ma Ying-jeou, who has pledged to improve the economy and ties with China, is found guilty of corruption.

Taiwan's high court will decide on an appeal filed by prosecutors accusing Ma of misusing $11.176 million ($344,000) while serving as Taipei mayor after a lower court exonerated him in August.

By law, Ma, presidential candidate for the main opposition Nationalist Party (KMT), would have to drop out of the race if he is found guilty and handed a sentence of 10 years or more.

He can also be debarred if he is convicted of charges such a breach-of-trust for which no appeal is allowed.

Ma's removal from the March 22 election without an equally popular replacement would aid ruling party presidential candidate Frank Hsieh, whose Democratic Progressive Party takes a harder line on relations with China.

"I think the sentence won't be too severe, but you cannot rule out the possibility," said George Tsai, a politics instructor at Chinese Cultural University in Taipei. "If that's the case, (the party) has to go back to square one."

Ma could also be held guilty of lesser charges and given a lighter sentence which would allow him to run for the presidency. An acquittal on the other hand would boost his support, Tsai said.

Ma, who advocates improving trade ties with fast-growing China as part of a bigger economic stimulus plan, seeks to replace President Chen Shui-bian, a China hardliner who will step down due to term limits

China has seen self-ruled Taiwan as part of its territory since the civil war of 1949, which sent the once dominant KMT fleeing to the island. Beijing has threatened to use force, if necessary, to bring Taiwan back.

KMT leaders insist that the court will find Ma not guilty.

"We believe Ma will have his name cleared," said KMT spokesman Su Jun-pin. "We expect that of the justice system."

Choosing a replacement for Ma would be like picking an alternate bride shortly before marriage, said Wu Den-yih, secretary general of the KMT's central committee.

Ma, who was Taipei mayor from 1998 to 2006 and has cultivated a clean image, was charged in February on suspicion of diverting money from a discretionary fund into his personal account every month over about five years.

Ma stepped down as KMT chairman after he was charged but has always denied wrongdoing and said he would run for office even if found guilty.

(Editing by Ken Wills and Sanjeev Miglani)