Military prosecutors launch investigation of loudspeaker project corruption allegations

Posted on : 2016-08-17 18:10 KST Modified on : 2019-10-19 20:29 KST
There are claims that preference was given to one bidding company, at price much higher than market value
Loudspeakers on the DMZused to broadcast propaganda into North Korea
Loudspeakers on the DMZused to broadcast propaganda into North Korea

South Korean military prosecutors raided the offices of a company with ties to the Ministry of Defense’s psychological warfare division, the Ministry announced on Aug. 16. The raid is connected with alleged corruption in a procurement project for loudspeakers used to broadcast propaganda into North Korea

“A search was carried out in connection with the North Korean propaganda loudspeaker procurement project. Since the investigation is still underway, I can’t provide a more detailed explanation until investigators release their findings,” said Moon Sang-gyun, Defense Ministry spokesperson, during the regular press briefing on Tuesday.

After South Korea resumed propaganda broadcasts along the DMZ into North Korea after Pyongyang carried out a fourth nuclear test in January, the Ministry’s psychological warfare division asked for the procurement of 40 more new loudspeakers.

But after the Ministry opened up the project for bids in April, allegations of corruption were raised among the five companies that were bidding for the project. These companies said that Ministry officials were helping one specific company by adding assessment criteria that were irrelevant to the performance of the loudspeakers, including the number of retail outlets that bidding companies have. The company that won the procurement bid typically produces sound equipment for broadcasting, not loudspeakers.

The performance evaluation that was scheduled for last month reportedly did not take place because the winning company’s products did not meet requirements. Allegations were also raised about the fact that the cost that the psychological warfare division assigned to the loudspeaker procurement project - 18 billion won (US$16.4 million) - was almost two times higher than the market price.

Once these suspicions were raised, the military prosecutors reportedly initiated an internal probe in mid-July. The fact that the prosecutors have now carried out a raid means that they have concluded the internal probe and have launched a full-blown investigation.

The army was planning to install permanent loudspeakers - which are currently in operation at 11 locations on the front lines - at 10 more locations by the end of the year and to double the number of portable loudspeakers in order to step up its psychological warfare against North Korea.

But the allegations of corruption that are being raised about the loudspeaker procurement project are likely to interfere with the army‘s plans to expand its propaganda broadcasts.

By Park Byong-su, senior staff writer

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

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