A court in Taiwan has indicted a Singaporean man for forgery and lying in a high-profile case involving the alleged embezzlement of 30 million US dollars in diplomatic funds.

Taipei district prosecutor's office says Wu Shih-tsai is charged with forging bank records and making up a story that gunmen threatened his life.

He was detained after the claims came to light in May, when Singapore's high court approved Taiwan's request to freeze a joint bank account belonging to Wu and another businessman, Ching Chi-ju.

Taiwanese authorities says they suspect both men of stealing funds intended to help the island forge ties with Papua New Guinea in 2006.

Prosecutors said they will continue to investigate the alleged involvement of three former top officials in the government of then President Chen Shui-bian.

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