Golf club scandal referred to court
Published: 16 Nov. 2009, 21:45
The Seoul Central District Prosecutors’ Office has indicted the head of State Wilshire Country Club on charges of creating slush funds, breaching public trust and lobbying government officials.
Investigators said Kong, 43, created funds worth 8.48 billion won ($7.35 million) which he received after buying land for the golf course at the club, which is in Anseong, Gyeonggi.
The prosecution said Kong bought the land for double what it is worth through the process of a double contract. The contracts were made between May 2004 and January the following year.
Kong allegedly paid 3 billion won out of the slush fund to a loan shark in August 2004 after borrowing 2.46 billion won between April and June the same year.
The suspect allegedly recorded the three billion won as a loan in an account book.
Prosecutors have accused Kong of a public breach of trust for falsifying his accounts.
In their probe, law enforcement officials discovered that Kong used 3.38 billion won of the slush fund for personal usage.
But prosecutors found that most of this 3.38 billion won was used in lobbying activities for politicians and high-profile government officials.
In line with these lobbying activities, investigators have also recently detained former chairman of Anseong City Council surnamed Kim, 65, on charges of receiving 180 million won from Kong in exchange for an approval of building the club.
Prosecutors also booked a former sales executive surnamed Jang, 45, at Daewoo Motor Sales Corporation with physical detention on charges of receiving 1 billion won from Kong in exchange for a loan guarantee.
Meanwhile, investigators are making claims that some ruling Grand National Party lawmakers, including Gong Sung-jin and Hyun Gyoung-byoung, are involved in the case.
Prosecutors detained Kong on Nov. 9 on charges of creating slush funds during a probe into the club’s alleged lobby scandal against politicians and government officials.
By Lee Chul-jae, Lee Min-yong [[email protected]]
Investigators said Kong, 43, created funds worth 8.48 billion won ($7.35 million) which he received after buying land for the golf course at the club, which is in Anseong, Gyeonggi.
The prosecution said Kong bought the land for double what it is worth through the process of a double contract. The contracts were made between May 2004 and January the following year.
Kong allegedly paid 3 billion won out of the slush fund to a loan shark in August 2004 after borrowing 2.46 billion won between April and June the same year.
The suspect allegedly recorded the three billion won as a loan in an account book.
Prosecutors have accused Kong of a public breach of trust for falsifying his accounts.
In their probe, law enforcement officials discovered that Kong used 3.38 billion won of the slush fund for personal usage.
But prosecutors found that most of this 3.38 billion won was used in lobbying activities for politicians and high-profile government officials.
In line with these lobbying activities, investigators have also recently detained former chairman of Anseong City Council surnamed Kim, 65, on charges of receiving 180 million won from Kong in exchange for an approval of building the club.
Prosecutors also booked a former sales executive surnamed Jang, 45, at Daewoo Motor Sales Corporation with physical detention on charges of receiving 1 billion won from Kong in exchange for a loan guarantee.
Meanwhile, investigators are making claims that some ruling Grand National Party lawmakers, including Gong Sung-jin and Hyun Gyoung-byoung, are involved in the case.
Prosecutors detained Kong on Nov. 9 on charges of creating slush funds during a probe into the club’s alleged lobby scandal against politicians and government officials.
By Lee Chul-jae, Lee Min-yong [[email protected]]
with the Korea JoongAng Daily
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