ID :
32541
Wed, 11/26/2008 - 17:13
Auther :
Shortlink :
http://m.oananews.org//node/32541
The shortlink copeid
Brother of former President Roh faces summons over bribery scandal
SEOUL, Nov. 26 (Yonhap) -- Prosecutors said Wednesday that they plan to summon the elder brother of former President Roh Moo-hyun in a widening bribery scandal, suspecting that real estate might have been bought for him in return for facilitating the sale of an ailing securities firm.
Roh Gun-pyeong, 66, was accused of playing the role of a middleman when the
state-run mega firm Nonghyup, or the National Agricultural Cooperative
Federation, took over Sejong Securities Co. as it teetered on the brink of
collapse in January 2006.
The allegations cast a shadow to the legacy of the former president, who took
office in 2003 with a pledge of "clean politics," shunning bribery and
corruption.
Roh Gun-pyeong, who was formerly convicted of bribery in another
influence-peddling scandal, has denied the allegations. Roh Moo-hyun has yet to
comment on the latest scandal.
Prosecutors said an unidentified witness has testified that lobbyists had "bought
real estate for Mr. Roh Gun-pyeong" in return for his intermediary role. It is
not yet known whether Roh has actually received compensation -- a commercial
building in a provincial town now registered under the name of a third party.
Choi Jai-kyeong, spokesman for the Supreme Prosecutors' Office, said earlier in
the day that investigators found no trace yet of any suspicious cash in Roh
Gun-pyeong's bank accounts.
"Investigators are tracking his accounts. We've found no concrete evidence yet to
confirm the allegations," Choi said.
Driven to the edge of default, Sejong Securities wanted to be taken over by
Nonghyup, rather than private, smaller entities. Nonghyup is a public-funded firm
that provides farmers and livestock breeders with soft loans and marketing
services and also has financial and retail-wholesale operations under its wing.
The ailing securities firm's major shareholder and financier, Sejong Capital, was
led at the time by a friend of Roh Gun-pyeong. The Sejong Capital chief, Hong
Gi-ok, turned to the president's brother for help in selling the ailing firm to
Nonghyup, prosecutors say.
There are two other men involved in the lobbying -- Jeong Hwa-sam, a high school
friend of former President Roh, and his brother Gwang-yong. Hong and the Jeong
brothers were arrested this week.
Prosecutors allege about 3 billion won (US$2 million) had been handed over to the
lobbyists, who then put the money in borrowed-name bank accounts. The main issue
of the investigation is whether some of the illicit money had ended up in the
hands of Roh Gun-pyeong.
A former official of the presidential office, Cheong Wa Dae, was found to have
been keeping the illicit money on behalf of the lobbyists, but prosecutors ruled
out any connection with then President Roh.
Roh Gun-pyeong, now banned from travel, said he will cooperate with the
investigation.
"People like us who live on farming can't receive such a big amount," he told
Yonhap over the telephone on Tuesday. "I haven't done anything to let people
down."
In 2004, he was sentenced to one year in prison with a two-year suspension and
fined 6 million won for taking bribes from the head of Daewoo Engineering and
Construction.
The Daewoo E&C chief, Nam Sang-kook, committed suicide by jumping into the Han
River after then President Roh publicly shamed him during a public conference
broadcast nationwide.
The 2004 scandal struck a blow to the Roh administration, which sought a clear
break with his predecessors, whose sons were often implicated in
influence-peddling scandals. Roh's children stayed out of public sight throughout
his term.
The Rohs now live in their rural hometown, Bonghwa village in South Gyeongsang
Province.
Prosecutors are investigating several corruption scandals involving Roh
associates. Park Yeon-cha, chief of Taekwang Industry and sponsor for the former
president, was accused of reaping murky earnings from his stock investment in
Sejong Securities. A share price for the securities firm jumped six-fold to
15,700 won on Dec. 28, 2005, when Nonghyup announced its planned takeover of the
firm, investigators said.
The chief of Nonghyup at that time, Chung Dae-kun, was suspected of pocketing 5
billion won in bribes for the takeover. Chung is serving a jail term for another
bribery case.
The main opposition Democratic Party, which was the ruling party under Roh's
rule, sought to distance itself from the corruption scandal.
Spokesman Choi Jae-sung said the party "will keep watch on the investigation" but
had nothing to comment at this moment.
Roh Gun-pyeong, 66, was accused of playing the role of a middleman when the
state-run mega firm Nonghyup, or the National Agricultural Cooperative
Federation, took over Sejong Securities Co. as it teetered on the brink of
collapse in January 2006.
The allegations cast a shadow to the legacy of the former president, who took
office in 2003 with a pledge of "clean politics," shunning bribery and
corruption.
Roh Gun-pyeong, who was formerly convicted of bribery in another
influence-peddling scandal, has denied the allegations. Roh Moo-hyun has yet to
comment on the latest scandal.
Prosecutors said an unidentified witness has testified that lobbyists had "bought
real estate for Mr. Roh Gun-pyeong" in return for his intermediary role. It is
not yet known whether Roh has actually received compensation -- a commercial
building in a provincial town now registered under the name of a third party.
Choi Jai-kyeong, spokesman for the Supreme Prosecutors' Office, said earlier in
the day that investigators found no trace yet of any suspicious cash in Roh
Gun-pyeong's bank accounts.
"Investigators are tracking his accounts. We've found no concrete evidence yet to
confirm the allegations," Choi said.
Driven to the edge of default, Sejong Securities wanted to be taken over by
Nonghyup, rather than private, smaller entities. Nonghyup is a public-funded firm
that provides farmers and livestock breeders with soft loans and marketing
services and also has financial and retail-wholesale operations under its wing.
The ailing securities firm's major shareholder and financier, Sejong Capital, was
led at the time by a friend of Roh Gun-pyeong. The Sejong Capital chief, Hong
Gi-ok, turned to the president's brother for help in selling the ailing firm to
Nonghyup, prosecutors say.
There are two other men involved in the lobbying -- Jeong Hwa-sam, a high school
friend of former President Roh, and his brother Gwang-yong. Hong and the Jeong
brothers were arrested this week.
Prosecutors allege about 3 billion won (US$2 million) had been handed over to the
lobbyists, who then put the money in borrowed-name bank accounts. The main issue
of the investigation is whether some of the illicit money had ended up in the
hands of Roh Gun-pyeong.
A former official of the presidential office, Cheong Wa Dae, was found to have
been keeping the illicit money on behalf of the lobbyists, but prosecutors ruled
out any connection with then President Roh.
Roh Gun-pyeong, now banned from travel, said he will cooperate with the
investigation.
"People like us who live on farming can't receive such a big amount," he told
Yonhap over the telephone on Tuesday. "I haven't done anything to let people
down."
In 2004, he was sentenced to one year in prison with a two-year suspension and
fined 6 million won for taking bribes from the head of Daewoo Engineering and
Construction.
The Daewoo E&C chief, Nam Sang-kook, committed suicide by jumping into the Han
River after then President Roh publicly shamed him during a public conference
broadcast nationwide.
The 2004 scandal struck a blow to the Roh administration, which sought a clear
break with his predecessors, whose sons were often implicated in
influence-peddling scandals. Roh's children stayed out of public sight throughout
his term.
The Rohs now live in their rural hometown, Bonghwa village in South Gyeongsang
Province.
Prosecutors are investigating several corruption scandals involving Roh
associates. Park Yeon-cha, chief of Taekwang Industry and sponsor for the former
president, was accused of reaping murky earnings from his stock investment in
Sejong Securities. A share price for the securities firm jumped six-fold to
15,700 won on Dec. 28, 2005, when Nonghyup announced its planned takeover of the
firm, investigators said.
The chief of Nonghyup at that time, Chung Dae-kun, was suspected of pocketing 5
billion won in bribes for the takeover. Chung is serving a jail term for another
bribery case.
The main opposition Democratic Party, which was the ruling party under Roh's
rule, sought to distance itself from the corruption scandal.
Spokesman Choi Jae-sung said the party "will keep watch on the investigation" but
had nothing to comment at this moment.
