TAIPEI: The family of Taiwan's former president Chen Shui-bian yesterday agreed to send back the NT$700 million (S$31.7 million) the government found in their Swiss bank accounts, prosecutors said.

This marked a twist in the ongoing probe into money-laundering allegations against Mr Chen and his family.

To help the probe, 'Chen Chih-chung (Chen's son) and his wife (Huang Jui-ching) have agreed...to remit the money now in the three Swiss bank accounts into a local bank account designated by the prosecutors', a spokesman told reporters.

The scandal surfaced in the middle of August when Mr Chen admitted, after the accounts were exposed, that his wife Wu Shu-chen had wired US$20 million (S$30.3 million) abroad from his past campaign funds.

He said she had done so without his knowledge and denied embezzling money from the government.

Mr Chen's son and his wife have said they were not aware of the source of the funds and were following Madam Wu's orders.

A member of the Koo family, one of Taiwan's richest, admitted for the first time earlier this month that they had paid Mr Chen millions of Taiwan dollars in kickbacks.

Mr Chen was arrested on Nov 11 on charges of money laundering, embezzling government funds, taking bribes and forging documents.