Portillo and Flores probably not only Central American heads of state to have received kickbacks from Taiwan

Boz and I spoke with Jan-Albert Hootsen for his recent story on China and Taiwan’s Secret Battle for Central America.

Flores is one of a number of Central American officials and former heads of state who have recently been accused of getting kickbacks from Taiwan roughly a decade ago. Analysts say the money is part of a silent diplomatic tug-of-war between the island and mainland China over Central America, where both countries are fighting over natural resources and Taiwan’s status as an independent country.

China and Taiwan have been playing out their differences in Central America for quite awhile. During the Cold War, military officers from the region (at least Guatemala) traveled to Taiwan for training. It seems as if guerrillas traveled to communist China but it's not exactly clear what the received from them other than a nice tour. Taiwan gave its support for the region's peace processes in the 1990s with economic assistance. They've been going at it ever since.

But analysts say the battle for Central America is far from over. Some think China is now throwing enormous sums of money into Central America to eventually buy loyalty away from Taiwan without actually violating the truce. And in the long run, there’s no way the island neighbor can compete with its larger and wealthier neighbor.

That could spell major trouble for the island if the current truce with China fails. Which is why even though the Portillo and Flores bribes allegedly happened roughly decade ago, some analysts think Taiwan may still be playing dirty. As Mike Allison, a professor of political science at the University of Scranton, says: “[Portillo and Flores] are probably not the only heads of state in Central America to have received kickbacks from Taiwan or simply pocketed donations meant for their citizens.”

There have been several scandals involving misappropriated money from Taiwan, including Costa Rica and several Caribbean countries, over the last decade-plus. I'm not sure that the competition has increased. I'm more comfortable saying that it has just been going on under the radar.