ID :
33441
Tue, 12/02/2008 - 06:14
Auther :
Shortlink :
http://m.oananews.org//node/33441
The shortlink copeid
Former Pres. Roh's brother denies taking bribes in securities firm sale
SEOUL, Dec. 1 (Yonhap) -- A brother of former President Roh Moo-hyun denied allegations that he had accepted bribes for the 2006 sale of an ailing securities firm as prosecutors questioned him in an influence-peddling probe on Monday.
Roh Gun-pyeong, 66, is suspected of influencing the state-run conglomerate
Nonghyup, or the National Agricultural Cooperative Federation, to take over
Sejong Securities Co. as it teetered on the brink of default in January 2006.
The probe was reminiscent of corruption scandals that have regularly emerged
after leaders have left office. Relatives and friends of Roh's predecessors have
been convicted under new administrations.
Roh Gun-pyeong was cooperative in the questioning, but flatly denied the
allegations, said Choi Jai-kyeong, a spokesman for the Supreme Prosecutors'
Office.
"I have never taken economic benefits" from the takeover, Roh was quoted as
saying by Choi.
Prosecutors allege he played a role in the acquisition and was promised real
estate in return.
The parent company of Sejong Securities reportedly wanted the firm to be taken
over by Nonghyup rather than a private, smaller company, and used its networks
with Roh.
The parent company gave 3 billion won to lobbyists who were acquainted with Roh,
and they bought a video game arcade worth 800 million (US$542,373). Prosecutors
allege that the arcade might have been intended as compensation for Roh.
The allegations, if proven, can land him a jail sentence of up to five years or a
fine of 50 million won.
Roh has said he had only made a simple phone call to the chief of Nonghyup at
that time, Chung Dae-kun, to introduce the securities firm and that no
influence-peddling took place.
Prosecutors were investigating whether Roh meant to coax Nonghyup into the 110
billion (US$75 million) takeover, whether he was the actual owner of the arcade,
and whether he received any form of payment after the takeover.
Nonghyup selected Sejong Securities as its preferred merger partner shortly after
Roh had called the Nonghyup chief in mid-2005, prosecutors said. Half a year
later, Nonghyup signed the acquisition deal with Sejong Securities, which was
then renamed Nonghyup CA Asset Management.
The Nonghyup chief, a long-time friend of Roh, was also suspected of pocketing
bribes in the takeover. He is serving a jail term on another bribery case.
Prosecutors planned to seek an arrest warrant for Roh. They will decide later in
the day whether to hold him or send him home before a court decides on the
warrant.
Former President Roh Moo-hyun has been reserved in commenting on the case.
Pressed by reporters while greeting visitors at his rural residence on Sunday
afternoon, he said, "Let's wait for the prosecutors' investigation."
Political parties rushed to interpret the possible impact.
Rep. Yoon Sang-hyun, spokesman for the ruling Grand National Party, called for a
strict inquiry to "find out whether Mr. Roh was, as the former president has
said, simply an old country man who doesn't know the world -- or the ringleader
of a corruption case surrounding power."
The main opposition Democratic Party, which was the ruling party in the previous
administration, cautioned against political retaliation. "Mr. Roh may be guilty
or innocent," Rep. Choi Jae-sung, the party spokesman, said. "But the
investigation should not be driven by special interests or emotions."
A key sponsor for the former president also faces trial. Park Yen-cha, head of
Taekwang Industry Co., a leading shoemaker and a Nike outsourcing firm, was
accused of reaping huge earnings from the Sejong Securities takeover and
acquiring a Nonghyup affiliate at a bargain price.
Park had invested 11 billion won in the shaky securities firm just months before
the takeover and earned 17.8 billion won when its shares jumped when news of the
deal broke.
In 2004, Roh Gun-pyeong was convicted of accepting 30 million won in bribes from
the head of Daewoo Engineering and Construction and received a suspended jail
term.
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 corruption scandal cast a shadow on the legacy of the former president, who
had promoted "clean politics" and sought to distance himself from his
predecessors, who had been plagued by corruption.
The Rohs now live in their rural hometown, Bonghwa village in South Gyeongsang
Province. The former president retired there in February.
Roh Gun-pyeong, 66, is suspected of influencing the state-run conglomerate
Nonghyup, or the National Agricultural Cooperative Federation, to take over
Sejong Securities Co. as it teetered on the brink of default in January 2006.
The probe was reminiscent of corruption scandals that have regularly emerged
after leaders have left office. Relatives and friends of Roh's predecessors have
been convicted under new administrations.
Roh Gun-pyeong was cooperative in the questioning, but flatly denied the
allegations, said Choi Jai-kyeong, a spokesman for the Supreme Prosecutors'
Office.
"I have never taken economic benefits" from the takeover, Roh was quoted as
saying by Choi.
Prosecutors allege he played a role in the acquisition and was promised real
estate in return.
The parent company of Sejong Securities reportedly wanted the firm to be taken
over by Nonghyup rather than a private, smaller company, and used its networks
with Roh.
The parent company gave 3 billion won to lobbyists who were acquainted with Roh,
and they bought a video game arcade worth 800 million (US$542,373). Prosecutors
allege that the arcade might have been intended as compensation for Roh.
The allegations, if proven, can land him a jail sentence of up to five years or a
fine of 50 million won.
Roh has said he had only made a simple phone call to the chief of Nonghyup at
that time, Chung Dae-kun, to introduce the securities firm and that no
influence-peddling took place.
Prosecutors were investigating whether Roh meant to coax Nonghyup into the 110
billion (US$75 million) takeover, whether he was the actual owner of the arcade,
and whether he received any form of payment after the takeover.
Nonghyup selected Sejong Securities as its preferred merger partner shortly after
Roh had called the Nonghyup chief in mid-2005, prosecutors said. Half a year
later, Nonghyup signed the acquisition deal with Sejong Securities, which was
then renamed Nonghyup CA Asset Management.
The Nonghyup chief, a long-time friend of Roh, was also suspected of pocketing
bribes in the takeover. He is serving a jail term on another bribery case.
Prosecutors planned to seek an arrest warrant for Roh. They will decide later in
the day whether to hold him or send him home before a court decides on the
warrant.
Former President Roh Moo-hyun has been reserved in commenting on the case.
Pressed by reporters while greeting visitors at his rural residence on Sunday
afternoon, he said, "Let's wait for the prosecutors' investigation."
Political parties rushed to interpret the possible impact.
Rep. Yoon Sang-hyun, spokesman for the ruling Grand National Party, called for a
strict inquiry to "find out whether Mr. Roh was, as the former president has
said, simply an old country man who doesn't know the world -- or the ringleader
of a corruption case surrounding power."
The main opposition Democratic Party, which was the ruling party in the previous
administration, cautioned against political retaliation. "Mr. Roh may be guilty
or innocent," Rep. Choi Jae-sung, the party spokesman, said. "But the
investigation should not be driven by special interests or emotions."
A key sponsor for the former president also faces trial. Park Yen-cha, head of
Taekwang Industry Co., a leading shoemaker and a Nike outsourcing firm, was
accused of reaping huge earnings from the Sejong Securities takeover and
acquiring a Nonghyup affiliate at a bargain price.
Park had invested 11 billion won in the shaky securities firm just months before
the takeover and earned 17.8 billion won when its shares jumped when news of the
deal broke.
In 2004, Roh Gun-pyeong was convicted of accepting 30 million won in bribes from
the head of Daewoo Engineering and Construction and received a suspended jail
term.
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 corruption scandal cast a shadow on the legacy of the former president, who
had promoted "clean politics" and sought to distance himself from his
predecessors, who had been plagued by corruption.
The Rohs now live in their rural hometown, Bonghwa village in South Gyeongsang
Province. The former president retired there in February.
