Taiwan prosecutors said Friday that they will probe money laundering charges against ex-president Lee Teng-hui.

Prosecution spokesman Chen Yun-nan said that former president Chen Shui-bian, who is charged with corruption and pending trial, provided information about Lee's alleged money laundering.

Lee was Taiwan's president from 1988-2000, and was succeeded by Chen, who stepped down in 2008.

But Chen's lawyer Shih Yi-lin denied that Chen made the accusation against Lee.

Earlier this month, Chen Shui-bian told reporters that Lee embezzled 1.6 billion Taiwan dollars (48 million US) and sent the money abroad through dummy accounts held by five of his aides.

Lee sternly denied the charge.

In a statement issued Friday through his political party, Taiwan Solidarity Union, Lee said that everything he did was open and above board and "everyone knows the tricks of Chen Shui-bian."

Analysts said it is not clear if Lee, who has no graft record, really embezzled money or if Chen accused Lee to try to distract media attention from his own corruption case.