Civic groups fattening their belly with subsidies

What the Board of Audit and Inspection discovered after investigating 73 figures related to 10 nongovernmental organizations (NGOs) receiving government subsidies is shocking. It uncovered 1.74 billion won ($1.3 million) worth of misappropriations of public funding that went to the purchase of a horse for a grandchild or amassed through false bookkeeping.

The role of NGOs is important as the government cannot look after every part of our society. NGOs play a critical part in aiding the underprivileged and keeping watch on the government and public institutions. It is why tax funds are reserved to back their activities. But the corruption of some organizations that abuse the subsidies for self-interests shakes the very foundation of faith in civic groups. Those who had embezzled public funds to fatten their wallets or the wealth of their relatives must be expelled from the field.

We wonder what the government did until one audit has uncovered the irregularities of 10 organizations. Did it really pay attention to how the tax funds were spent by the receiving end? Subsidies to NGOs increased by an average of 400 billion won a year during the five-year term of former President Moon Jae-in, topping 5 trillion won. The past government did not pursue an investigation when illicit payment was exposed in 2019. It might have chosen to overlook the misdeeds of civic groups who support liberal administrations.

After succeeding a liberal mayor who reigned for a decade, Seoul Mayor Oh Se-hoon was appalled to find that the Seoul city coffers served as an “ATM” for civic organizations after an internal investigation in September 2021, prompting a strong protest from the liberal front. Nevertheless, a civic group went on to inflate the budget for a cultural event by 120 billion won and embezzled the money through a paper company under the name of an executive’s daughter. The case was a typical example of the moral hazard of a corrupt NGO.

Voluntary civilian activities are crucial in an advanced society. The central and local governments must support their activities to supplement public policies. Civilian groups must manage the funds, which came from taxpayers, with extra discretion to keep up the benign legacy. Greenpeace does not receive any funding from a government or corporation to ensure independence in its environmental activities. A civilian group can gain greater justice if it relies on donations from civilians who support the activities.

The audit must not be a one-off event. The government must continue with its surveillance of state subsidies. Past governments have been scorned for supporting groups of the same ideology. The conservative Yoon Suk Yeol administration must take extra care so that valuable tax funds do not end up in the pockets of greedy figures.