Logistics firm probed over corruption
Published: 24 Sep. 2009, 05:01
Prosecutors have launched a large-scale investigation into allegations of corruption at two companies.
The Seoul Central District Prosecutors’ Office began a probe on Tuesday at the Busan and Masan offices of Seoul-based Korea Express, the country’s largest logistics company, on whether senior executives allegedly embezzled the firm’s money.
Investigators raided offices and obtained computer hard disks, accounting books and other materials for the investigation.
Prosecutors said that some senior executives have supposedly diverted company money by inflating the cost of loading and unloading cargo containers as well as other logistics services. Investigators also suspect that employers deliberately took more money after signing contracts with subcontractors.
There is a possibility that employers might have created a slush fund, according to prosecutors. They are planning to look at how the money was used and whether the executives acted in collaboration with headquarters. k
Law enforcement officers said they will summon suspects after an analysis of their bank accounts and confiscated goods has been completed.
“The Busan office has been managed under a self-supporting accounting system and there is no evidence that headquarters is involved in the case,” said an official from Korea Express who declined to be identified.
Korea Express obtained management rights after taking over equity at Busan Container Terminal Company, which is the largest cargo container terminal in Busan port, in April this year.
The firm was under legal management from June 2001 and became an affiliate of the Kumho Asiana Group in April 2008. Last year alone, the company produced sales of more than 1.8 trillion won ($1.4 billion).
In addition, the Incheon District Prosecutors’ Office raided four locations related to Incheon-based Doosan Infracore Company, Korea’s largest maker of construction equipment, including the headquarters and the Seoul office, also on Tuesday.
Incheon prosecutors and officials from the Defense Acquisition Program Administration, the National Defense Ministry’s procurement agency, are jointly investigating whether Doosan pumped up the cost of engines on nine navy speed boats, profiting by over 800 million won ($664,800) five years ago. Investigators also confiscated accounting books and other documents.
“It is true that prosecutors searched the headquarters in Incheon and the Seoul office. We are figuring out whether the corruption was true,” said an executive from Doosan on condition of anonymity.
A prosecutor at the Supreme Prosecutors’ Office said investigators have been intensifying probes after President Lee Myung-bak revealed his intention to weed out social corruption.
By Lee Chul-jae, Lee Min-yong [[email protected]]
The Seoul Central District Prosecutors’ Office began a probe on Tuesday at the Busan and Masan offices of Seoul-based Korea Express, the country’s largest logistics company, on whether senior executives allegedly embezzled the firm’s money.
Investigators raided offices and obtained computer hard disks, accounting books and other materials for the investigation.
Prosecutors said that some senior executives have supposedly diverted company money by inflating the cost of loading and unloading cargo containers as well as other logistics services. Investigators also suspect that employers deliberately took more money after signing contracts with subcontractors.
There is a possibility that employers might have created a slush fund, according to prosecutors. They are planning to look at how the money was used and whether the executives acted in collaboration with headquarters. k
Law enforcement officers said they will summon suspects after an analysis of their bank accounts and confiscated goods has been completed.
“The Busan office has been managed under a self-supporting accounting system and there is no evidence that headquarters is involved in the case,” said an official from Korea Express who declined to be identified.
Korea Express obtained management rights after taking over equity at Busan Container Terminal Company, which is the largest cargo container terminal in Busan port, in April this year.
The firm was under legal management from June 2001 and became an affiliate of the Kumho Asiana Group in April 2008. Last year alone, the company produced sales of more than 1.8 trillion won ($1.4 billion).
In addition, the Incheon District Prosecutors’ Office raided four locations related to Incheon-based Doosan Infracore Company, Korea’s largest maker of construction equipment, including the headquarters and the Seoul office, also on Tuesday.
Incheon prosecutors and officials from the Defense Acquisition Program Administration, the National Defense Ministry’s procurement agency, are jointly investigating whether Doosan pumped up the cost of engines on nine navy speed boats, profiting by over 800 million won ($664,800) five years ago. Investigators also confiscated accounting books and other documents.
“It is true that prosecutors searched the headquarters in Incheon and the Seoul office. We are figuring out whether the corruption was true,” said an executive from Doosan on condition of anonymity.
A prosecutor at the Supreme Prosecutors’ Office said investigators have been intensifying probes after President Lee Myung-bak revealed his intention to weed out social corruption.
By Lee Chul-jae, Lee Min-yong [[email protected]]
with the Korea JoongAng Daily
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