Chief auditor hints at disclosing names of ineligible subsidy takers

(ATTN: CHANGES slug, headline; RECASTS lead; ADDS paras 4, 7-9, with chief auditor's
comments; RESTRUCTURES and TRIMS)
By Shin Hae-in
SEOUL, Oct. 17 (Yonhap) -- The escalating scandal over ranking officials' alleged
snatching of state farming subsidies took a new turn Friday, as the chief auditor
hinted at a possible disclosure of the names of those who illegally pocketed the
funds.
At least 500 billion won (US$384 million) in government subsidies aimed at
supporting rice producers is believed to have gone to millions of ineligible
recipients -- including government officials and legislators -- over the past
four years, triggering anger from local farmers.
Although the case has been hinging on the state audit board's disclosure of the
names of the illegal subsidy takers, it has been reluctant to do so, insisting
the recipients are categorized only by profession and that old files have already
been discarded.
"We don't have it now, but are willing to make the list again if the parliament
requests us," Kim Hwang-sik, chairman of Board of Audit and Inspection, told a
parliamentary session Friday. "The process will take from two to three weeks."
The rice farming subsidy system was established in 2005 under the Roh Moo-hyun
administration to support low-income farmers who protested the opening of the
Korean rice market to cheaper imports. Only those who actually produce rice --
excluding those who simply own rice paddies -- are eligible for the state
subsidies.
The ongoing case, which made headlines after the nation's vice health minister
was found to have applied for the money under false claims, has grown into a
corruption scandal involving thousands of public servants, including at least
seven high-ranking officials and four legislators.
The chief auditor added that then President Roh was briefed last year on the
abuse of the rice subsidy system, adding to the ongoing dispute between the two
divided political sides.
The conservative ruling party has been accusing the former president of
deliberately ignoring the errors in the subsidy system.
"Then President Roh was briefed on June 20 of last year of the audit results on
illegal recipients of the rice subsidies," he said. "I cannot be sure of the
details of the meeting as I was not present, but there had been no orders from
him on the matter."
The ruling Grand National Party (GNP) claimed the former government was fully
accountable for failing to address the matter earlier and accused it of providing
cover for officials who broke the law.
"Suspicions are growing that the audit board was ordered by Roh's office not to
disclose its audit results ahead of the presidential election that year," GNP
floor leader Hong Joon-pyo said.
Both Roh's aides and state auditors denied the accusation.
Meanwhile, prosecutors on Friday decided to delay their planned investigation
into allegations against Vice Health Minister Lee Bong-hwa until after the
government inspection into other subsidy recipients ends, officials said.
"We have decided to deal with the case in one stretch, after the government
inspects others who may be charged with crimes," an official of the Supreme
Prosecutors' Office said.
The Lee Myung-bak government has been facing mounting pressure from civic groups
and opposition parties to dismiss the vice minister. Lee's Cabinet has been
dogged by corruption allegations since his inauguration.
Observers say officials and legislators who own land likely applied for the
subsidies in order to evade heavy property taxes rather than for the subsidies
themselves, and in the process inflicted financial losses on tenants who did the
actual farming.
Under the country's tax law, individuals must farm the land for at least eight
years to receive tax deductions on their property. As the government does not
require proof that applicants are actual farmers, non-farmers are able to abuse
the system.