Prosecutors delve into Tbroad slush fund charge
Published: 25 Sep. 2009, 23:12
Investigations into allegations of company corruption have intensified following recent cases of suspected illegal business activities.
It was confirmed on Thursday that the Seoul Central District Prosecutors’ Office had already begun probing Tbroad, Korea’s largest multiple cable system operator affiliated with Taekwang Industrial Group, on whether the group created slush funds while taking over the smaller cable operator Qrix Communications in May.
Prosecutors summoned senior executives at Taekwang for questioning on Thursday.
Investigators said Tbroad allegedly signed a double contract with Qrix Communications in December 2006. The contract indicated that the Military Mutual Aid Association will first take charge of 30 percent of Qrix Holdings’ whole equity and then sell the equity to Tbroad with additional options within two years.
Qrix Holdings is the principal stakeholder in Qrix Communications.
Military Mutual Aid Association, a special organization under the Ministry of National Defense, helps military personnel and veterans.
Law enforcement officers vowed to investigate whether the group lobbied politicians and government officials as well.
Officers said they found that executives at Tbroad served Blue House officials drinks at bars and room salons at the end of March shortly before the Korea Communications Commission approved Tbroad’s take over.
“Suspicions surrounding the case have already been unveiled through the commission’s investigation,” said an employer from Taekwang on condition of anonymity.
In addition, prosecutors said they are probing SK Engineering and Construction for an alleged slush fund the firm began with profits from a double contract on a collaborative construction corporation while building the SK View apartments in Busan.
“Not one executive at SK was summoned before and we had never received a request to hand over materials for the investigation,” said an official from SK who declined to be named.
Meanwhile, the CEO of Seoul-based Korea Express, Lee Kook-dong, who allegedly embezzled company money worth about 9 billion won ($7.5 million) along with a man identified only as Yu, the head of the company’s Masan offices, voluntarily appeared at the prosecutors’ office for questioning yesterday afternoon.
By Lee Chul-jae, Lee Min-yong [[email protected]]
It was confirmed on Thursday that the Seoul Central District Prosecutors’ Office had already begun probing Tbroad, Korea’s largest multiple cable system operator affiliated with Taekwang Industrial Group, on whether the group created slush funds while taking over the smaller cable operator Qrix Communications in May.
Prosecutors summoned senior executives at Taekwang for questioning on Thursday.
Investigators said Tbroad allegedly signed a double contract with Qrix Communications in December 2006. The contract indicated that the Military Mutual Aid Association will first take charge of 30 percent of Qrix Holdings’ whole equity and then sell the equity to Tbroad with additional options within two years.
Qrix Holdings is the principal stakeholder in Qrix Communications.
Military Mutual Aid Association, a special organization under the Ministry of National Defense, helps military personnel and veterans.
Law enforcement officers vowed to investigate whether the group lobbied politicians and government officials as well.
Officers said they found that executives at Tbroad served Blue House officials drinks at bars and room salons at the end of March shortly before the Korea Communications Commission approved Tbroad’s take over.
“Suspicions surrounding the case have already been unveiled through the commission’s investigation,” said an employer from Taekwang on condition of anonymity.
In addition, prosecutors said they are probing SK Engineering and Construction for an alleged slush fund the firm began with profits from a double contract on a collaborative construction corporation while building the SK View apartments in Busan.
“Not one executive at SK was summoned before and we had never received a request to hand over materials for the investigation,” said an official from SK who declined to be named.
Meanwhile, the CEO of Seoul-based Korea Express, Lee Kook-dong, who allegedly embezzled company money worth about 9 billion won ($7.5 million) along with a man identified only as Yu, the head of the company’s Masan offices, voluntarily appeared at the prosecutors’ office for questioning yesterday afternoon.
By Lee Chul-jae, Lee Min-yong [[email protected]]
with the Korea JoongAng Daily
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