GNP bracing for ‘money envelope’ scandal

Posted on : 2012-01-06 08:46 KST Modified on : 2019-10-19 20:29 KST
Park Geun-hye calls for investigation to avoid crisis like 2002’s "money truck" nightmare
 Jan. 5.
(Photo by Kang Chang-kwang)
Jan. 5. (Photo by Kang Chang-kwang)

By Seong Yeon-cheol

A bombshell has fallen on the ruling Grand National Party in the form of allegations of "money envelopes" changing hands at a party convention.

Speaking at a press conference Wednesday and at a local constituency New Year's event Thursday, lawmaker Koh Seung-duk said he had received an envelope containing three million won ($2600) from a candidate during a party convention.

Political observers believe the individual alleged to have given the envelope to Koh was either National Assembly Speaker and former GNP chairman Park Hee-tae or former chairman Ahn Sang-soo. As both are key figures in the Lee Myung-bak administration, observers are predicting considerable ramifications, with the allegations tied in with a prosecutor's investigation, GNP reforms, and the general elections in April.

The party held a meeting Thursday at the National Assembly with emergency countermeasures committee chairwoman Park Geun-hye presiding. In that meeting the party decided to immediately submit an investigation request form to the Seoul Central District Prosecutors' Office.

At a briefing Thursday, spokesman Hwang Young-chul said the decision was made according to Article 50 of the Political Party Act which prohibits the "bribery of a party chairperson election, etc., and inducement".

During the meeting, Park stressed the need to "dispel the allegations by promptly bringing truth to light before suspicions spread among the South Korean public."

Park's immediate decision to have prosecutors investigate was based on her impression that extreme measures were in order. Observers said another factor appeared to be concerns that delaying addressing the allegations could leave the party beyond the help of even the committee's reforms after already suffering the blow of implication in a distributed denial of service attack on the National Election Commission web site that took place on the day of the Seoul mayoral by-election in October.

Some of those present at Thursday’s meeting suggested having the party's ethics committee investigate the allegations or forming a fact-finding committee. But the decision reportedly tipped in favor of a prosecutors' investigation after lawmaker Joo Kwang-deok and external committee members stressed the need to "stop dithering around" and have an investigative organization handle the allegations, arguing that an internal party investigation would "not be able to dispel the allegations in a way South Koreans would appreciate."

The committee also rescinded Koh's nomination as a member of the DDoS attack verification committee.

Analysts said Park likely felt she had little option or room for debate with these allegations after previously taking the drastic measure of recommending revoking lawmaker Choi Gu-sik’s party membership. Choi is currently being investigated by prosecutors over allegations surrounding his involvement in the DDoS attack.

Observers said the move reflected a strategy of eliminating a pretext for allegations by giving the case to prosecutors early on so that it did not become a second "money truck" incident implicating the entire party in the handing out of money in 2002.

Some analysts said the decision reflected Park's characteristic approach of promptly dealing with allegations of impropriety. When allegations of nomination donation transactions involving prominent party figures Kim Duk-ryong and Park Sung-bum surfaced during local election nominations in 2006 while she was party chairwoman, Park Geun-hye immediately held an emergency supreme council meeting where a decision was made to order a prosecutors’ investigation.

Some members of the party's Lee Myung-bak wing expressed concern that Park might use the allegations as a pretext for shuffling out pro-Lee figures. A lawmaker from the Lee camp said, "The emergency committee was in a fuss anyway over not having any prey, and it could very well take advantage of this situation to replace people from the Lee wing."

At a press conference, Koh said, "After giving the money, this individual was elected party chairman, and he and the person who delivered the money envelope are not only both in the Lee wing, but were very cold to me after I supported him."

Koh did not specify the time the incident allegedly occurred, but did say it was not the convention of July 4, 2011, where Hong Joon-pyo was elected chairman. This narrows the possibilities down to Speaker Park Hee-tae, who was elected chairman in 2008, and Ahn Sang-soo, who was elected chairman in 2010.

Park Hee-tae was reported by an associate as saying he had "no idea about this." A senior Cheong Wa Dae official reported to have given Koh the envelope on Park's behalf has avoided contact with the media.

Ahn said, "I have never handed out money envelopes during a party convention or any other time."

In a post on his home page Thursday, Koh indicated that he would give out the name of the person who gave the money if summoned to appear before prosecutors. "I will faithfully cooperate with a prosecutors' investigation and state the truth," he wrote. "I will do my best so that this may be an occasion for the advancement of politics in accordance with the wishes of South Koreans."

According to the Political Party Act, individuals who offer money, gifts, entertainment, or other material assets to candidates, election campaign officials, electors, or observers with the goal of encouraging or discouraging elector votes during the selection of a party chairperson or official may be subject to up to three years' jail time and/or six million won in fines.

A GNP official said, "It's always been said that candidates hand out billions of won at every convention, but the Pandora's box has now been opened with this case."

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

Most viewed articles