Taiwan's defence minister resigned on Saturday as the government backed down on a controversial plan to invest in a new company set up to handle its arms imports.
Lee Tien-yu quit after opposition lawmakers accused members of the ruling Democratic Progressive Party of seeking to profit from the company, Taiwan Goal, which is headed by DPP heavyweight Wu Nai-jen.
"I deeply regret that the establishment of Taiwan Goal caused concerns and doubts in various sectors and I hereby tender my resignation," he said in a brief statement.
The government also said it would cancel plans to put up 45 percent of Taiwan Goal's initial capital of 200 million dollars (6.33 million US).