Ex-Head of Spy Agency Accused

The Supreme Public Prosecutors Office said Wednesday that it has found clues leading it to believe that Kwon Young-hae, former director of intelligence, knew of the money transfer to the then-ruling New Korea Party from the National Security Planning Agency during the general election campaign in 1996.

Mr. Kwon was summoned by the prosecution on Tuesday night on charges that he was involved in the alleged illegal money transfer. The prosecution asked him whether he pooled the funds and colluded with the then-ruling party officials in providing the funds.

A prosecution official said Mr. Kwon probably received reports from his subordinates that 119.2 billion won 96 million) of his agency's money was funneled into New Korea Party election headquarters. He added that even if Kim Ki-sup, money manager at the state intelligence agency at the time, handled the day-to-day transactions, it is difficult to under-stand how money exchanges of that magnitude could have been overlooked Mr. Kwon. The prosecution planned to send Mr. Kwon home Wednesday night because of his failing health. It will probably indict him without detaining him after supplementary investigation, prosecution official said. According to the prosecution, Mr. Kwon flatly denied his involvement in the scheme and said that Mr. Kim prob-ably carried out the operation by him-self.

Mr. Kwon also said that he never received orders from anyone nor did he consult anyone regarding the provision of funds for the election campaign. Regarding Deputy Prosecutor General Shin Seung-nam's comment on Tuesday that the prosecution will not conduct further investigation on polititians, a prosecution official explained that he meant that the prosecution will not waste its energy on conducting investigations that are unlikely to reveal much. He said Mr. Shin's comment should not be interpreted to mean that the prosecution intends to wrap up the investigation hurriedly.

The official vowed to conduct thorough investigations into everyone involved in the illegal money transfer. Meanwhile, opposition lawmakers stormed the prosecutors office Wednesday morning to protest what they described as the prosecution's politically motivated investigation. Kwon Chul-hyeon, an opposition spokesman, reported that "the prosecution admitted that its investigation is being conducted to please the ruling party."

by Shin Dong-jae