Taipei, February 13:

Ma Ying-jeou stepped down as Taiwan opposition leader after being indicted for embezzlement today but defiantly announced he was running for president in a day of high political drama.

Ma, a former graft-buster who has been battling corruption claims since November, was indicted for allegedly misusing more than 11 million Taiwan dollars (333,330 US) in expense accounts when Taipei mayor.

But the 56-year-old reacted quickly, declaring his candidacy for presidential elections next year after ending his 19-month term as Kuomintang (KMT) head.

“The honesty and integrity I have safeguarded all my life have been doubted. It is more painful than losing my life,” Ma said.

“Justice must be upheld through actions. I will thereby turn the pain into strength and run for presidency in 2008,” he added.

Ma described the charges against him as “utterly unacceptable” but said he would keep his promise to resign as KMT leader if indicted.

“I respect the judicial system but the embezzlement charges are utterly unacceptable. However, I will keep my promise to resign as KMT chairman,” he said.

It was not immediately clear whether Ma will run as an independent or try to win his party’s nomination. Under current rules, which party authorities are trying to amend, an indicted member must not be named for any elections.

Ma has denied misusing funds during his 1998-2006 stint as mayor, insisting he acted exactly the same as some 65,000 other government chiefs entitled to special expenses.

If convicted, he would face a minimum of seven years in jail, according to Taiwanese law.

Prosecutors, however, asked the judges for leniency since they said Ma had donated 15 million dollars to charity during the investigation.

Wu Po-hsiung, one of the KMT’s five vice-chairmen, will serve as acting party chief before an election for Ma’s replacement in May.

Ma was elected KMT chairman in July 2005 and oversaw the party’s landslide victory in the local government chief elections five months later.

After losing his job as justice minister in 1996 for waging an unpopular battle against corruption, Ma was elected Taipei mayor in 1998 and won re-election in 2002. His second and final term ended on December 15, 2006.