Bribery scandal still expanding
Published: 07 Dec. 2009, 23:03
The ongoing investigation into the graft scandal involving a local businessman expanded further yesterday as a former presidential secretary to the Roh Moo-hyun Blue House was summoned by prosecutors for questioning.
According to the special investigation unit of the Seoul Central District Prosecutors’ Office, the former Roh aide was summoned as a witness in a probe into an influence-peddling allegation.
Kwak Young-wook, former CEO of Korea Express, is suspected of bribing high-profile figures, including former Prime Minister Han Myeong-sook in 2007 in his bid to become the president of Korea South-East Power Co., an affiliate of the state-run Korea Electric Power Corporation.
Prosecutors said the former Roh aide was asked if there was political pressure for Kwak’s appointment. The probe also focused on the possibility that the former secretary had acted as a middleman between Kwak and other influential figures.
The political arena was alarmed yesterday as the graft scandal expanded. Kwak had already told prosecutors he had given $50,000 to Han, a charge that she flatly denies.
The scandal is a byproduct of an investigation into a suspected bribery network in the maritime industry, sources said. During the investigation into former Maritime and Fisheries Minister Kang Moo-hyun in July last year, prosecutors seized a secret book during a raid of a company suspected of bribing Kang. The book, according to the sources, showed that the company had received about 600 million won ($520,000) from Korea Express in return for providing favors in stevedore operations.
Kang was convicted for receiving bribes earlier this year.
Prosecutors raided the Busan and Masan branches of Korea Express in September. Lee Kook-dong, current president of Korea Express, was arrested and indicted on charges of creating and managing a network of slush funds worth 22.9 billion won since 2001.
Kwak was indicted last month on charges of receiving 8.3 billion won of the embezzled money from Lee.
While questioning Kwak about where he had spent the sum, prosecutors obtained statements that he had given money to politicians to advance his career.
In April 2007, Kwak was named the head of the Korea South-East Power Co, although he had little experience in managing a utility firm. Prosecutors believe other powerful figures of the Roh administration were bribed by Kwak, sources said.
Han, a senior member of the Democratic Party who had served the Roh administration as prime minister from April 2006 to March 2007, reiterated yesterday that she was innocent. The Democratic Party and Roh loyalists have formed committees to counter the prosecution’s move.
In a separate probe, the central prosecutors’ office has obtained testimony from a Grand National lawmaker’s aide that his boss had demanded and received 100 million won from a businessman, sources said.
According to the sources, GNP Representative Hyun Gyoung-byoung was accused of receiving the money from the owner of the State Wilshire Country Club in Gyeonggi. The businessman is also suspected of giving money to Hyun’s aides.
Prosecutors will soon summon Hyun to look into the allegations, sources said.
By Ser Myo-ja [[email protected]]
According to the special investigation unit of the Seoul Central District Prosecutors’ Office, the former Roh aide was summoned as a witness in a probe into an influence-peddling allegation.
Kwak Young-wook, former CEO of Korea Express, is suspected of bribing high-profile figures, including former Prime Minister Han Myeong-sook in 2007 in his bid to become the president of Korea South-East Power Co., an affiliate of the state-run Korea Electric Power Corporation.
Prosecutors said the former Roh aide was asked if there was political pressure for Kwak’s appointment. The probe also focused on the possibility that the former secretary had acted as a middleman between Kwak and other influential figures.
The political arena was alarmed yesterday as the graft scandal expanded. Kwak had already told prosecutors he had given $50,000 to Han, a charge that she flatly denies.
The scandal is a byproduct of an investigation into a suspected bribery network in the maritime industry, sources said. During the investigation into former Maritime and Fisheries Minister Kang Moo-hyun in July last year, prosecutors seized a secret book during a raid of a company suspected of bribing Kang. The book, according to the sources, showed that the company had received about 600 million won ($520,000) from Korea Express in return for providing favors in stevedore operations.
Kang was convicted for receiving bribes earlier this year.
Prosecutors raided the Busan and Masan branches of Korea Express in September. Lee Kook-dong, current president of Korea Express, was arrested and indicted on charges of creating and managing a network of slush funds worth 22.9 billion won since 2001.
Kwak was indicted last month on charges of receiving 8.3 billion won of the embezzled money from Lee.
While questioning Kwak about where he had spent the sum, prosecutors obtained statements that he had given money to politicians to advance his career.
In April 2007, Kwak was named the head of the Korea South-East Power Co, although he had little experience in managing a utility firm. Prosecutors believe other powerful figures of the Roh administration were bribed by Kwak, sources said.
Han, a senior member of the Democratic Party who had served the Roh administration as prime minister from April 2006 to March 2007, reiterated yesterday that she was innocent. The Democratic Party and Roh loyalists have formed committees to counter the prosecution’s move.
In a separate probe, the central prosecutors’ office has obtained testimony from a Grand National lawmaker’s aide that his boss had demanded and received 100 million won from a businessman, sources said.
According to the sources, GNP Representative Hyun Gyoung-byoung was accused of receiving the money from the owner of the State Wilshire Country Club in Gyeonggi. The businessman is also suspected of giving money to Hyun’s aides.
Prosecutors will soon summon Hyun to look into the allegations, sources said.
By Ser Myo-ja [[email protected]]
with the Korea JoongAng Daily
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