Ex-president Roh was briefed on abuse of rice subsidy system: audit board

By Shin Hae-in
SEOUL, Oct. 17 (Yonhap) -- The escalating scandal over ranking officials' alleged snatching of state farming subsidies sparked a dispute between rival parties Friday, as state auditors accused the preceding government of ignoring errors in the system.

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.
"Former President Roh Moo-hyun was briefed on June 20 of last year of the audit
results on illegal recipients of the rice subsidies," the Board of Audit and
Inspection (BAI) said in a report to a ruling party lawmaker on Friday.
"Officials had pointed out the problems in the system and the need for revision,
but the former president chose not to take the issue any further."
The rice farming subsidy system was established in 2005 under the liberal Roh
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.
Although the case now hinges on the BAI's disclosure of the names of those who
illegally pocketed the money, it has been reluctant to do so, insisting the
recipients are categorized only by profession and that old files have already
been discarded.
The ruling Grand National Party (GNP) immediately went on the attack, holding the
former government fully accountable for failing to address the matter earlier on.

"Suspicions are growing that the audit board was ordered by the presidential
office not to disclose its audit results ahead of the presidential election that
year," GNP floor leader Hong Joon-pyo said. "It is hard to understand why the
board chose to delete the list of recipients' names after taking so much time in
inspecting these people."
The main opposition Democratic Party criticized its rival of attempting to
politicize the issue, calling once again for the list of names of officials who
received the funds.
"Only the audit board's list can settle this issue once and for all," said
democratic floor leader Won Hye-young. "What is it afraid of? We cannot help but
wonder."
Meanwhile, prosecutors decided to hold back Friday on their planned investigation
of allegations against Vice Health Minister Lee Bong-hwa until after beginning a
government inspection into other subsidy recipients, officials said.
"We have decided to deal with the case at 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.
hayney@yna.co.kr
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