Government investigation finds nearly 200 billion won in improprieties

Posted on : 2015-03-09 15:42 KST Modified on : 2019-10-19 20:29 KST
Investigation currently focusing on Navy, and likely to turn up more malfeasance and the probe is broadened

A joint government investigation team looking into defense project corruption announced on Mar. 8 that 23 people, including five reserve generals, had been indicted during the hundred days since its launch, with nearly 200 billion won in projects found to involve improprieties.

The team, headed by Kim Ki-dong, has mainly focused on investigating corruption in connection with Navy guided missile patrol boat engines, body armor and winter clothes, and fighter plane servicing since its Nov. 21 launch, with projects in these areas valued at 198.1 billion won (US$178.2 million). The figure includes 170.7 billion won (US$153.6 million) in Navy-related improprieties, 24.3 billion won (US$21.9 million) involving the Air Force, 1.8 billion won (US$1.6 million) involving the Defense Acquisition Program Administration (DAPA), and 1.3 billion won (US$1.2 million) involving the Army.

The Navy also accounted for the largest number of individuals subject to criminal penalties. Former Navy Chief of Staff Jung Ok-keun was arrested and charged with receiving 770 million won (US$693,000) from an STX affiliate through his son’s company in connection with guided missile patrol boat engines.

Commenting on the relatively large scale of improprieties involving the Navy, the team explained, “The major Army weapons and Air Force aircraft are generally introduced as finished products, whereas warships involve equipment from various different companies, which leaves more room for improprieties.”

The team also said the investigations were benefiting from coordination with a special Board of Audit and Inspection (BAI) team on defense industry corruption, noting that the investigation had focused on BAI data in investigating the embezzlement of around 24 billion won (US$21.6 million) in servicing costs by a maintenance company for the KF-16, the Air Force’s main fighter aircraft.

Park Ki-sung, the 53-year-old president of the aircraft servicing firm Blueneer, previously disappeared during a 2012 investigation the Seoul Southern District Prosecutors‘ Office. In December of last year, three police officers dispatched by the joint investigation team arrested him after a three-week takeout - a collar that brought the full extent of irregularities to light.

Some critics maintain that the team’s results so far have fallen short of expectations, with most of the focus either on one-off investigations or cases that have received press coverage.

A source with the team said a number of additional defense industry investigations were under way besides those being reported.

“We also believe that there will be strong judicial cooperation with the other countries involved,” the source said.

Because large-scale defense projects involve close connections with foreign firms, judicial cooperation is essential. The joint investigation team is known to have requested cooperation from three to four countries on data and other areas.

The same day, the team requested an arrest warrant for a 56-year-old reserve rear admiral and former naval headquarters firepower analysis, testing, and evaluation team director surnamed Im on charges of drafting false official documents. Im is suspected of doctoring assessment reports for hull-mounted sonar on the Tongyeong naval rescue ship - the case that led to the team’s launch in the first place.

Im is believed to have ordered a reserve captain and fellow Naval Academy alumnus to draft an assessment report favoring the company Hackenco. The reserve captain is currently under arrest.

 

By Jung Hwan-bong, staff reporter

 

Please direct questions or comments to [english@hani.co.kr]

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