ID :
35083
Thu, 12/11/2008 - 14:53
Auther :
Shortlink :
http://m.oananews.org//node/35083
The shortlink copeid
Cooperative reform: It's rrgent to cut corrupt ties to better serve farmers
The nation's corruption-ridden farm cooperative should no longer delay its reforms to improve its transparency and accountability.
The National Agricultural Cooperative Federation (NACF), better known as Nonghyup, is required to push radical restructuring of its bloated structure, in which its chairman wields unchecked power.
The chairmanship has been an elected post since 1988. However,
it is a shame that the three elected chairmen have been jailed for bribery and
other corruption charges.
Now, the cooperative is under severe criticism because it is again at the center
of a corruption scandal related to its 2006 purchase of Sejong Securities. Roh
Geon-pyeong, elder brother of former President Roh Moo-hyun, was detained last
week on suspicion of taking a huge bribe in return for influence peddling in the
takeover deal. Park Yeon-cha, a long-time supporter and financier of the
ex-president, is also being investigated for allegedly profiting from a dubious
transaction of Sejong shares before the NACF acquired the brokerage house.
Park, chairman of shoemaker Taekwang, also faces allegations that he bought
Hu-Chems, a chemical subsidiary of the cooperative, for a price much lower than
its market value, probably through a secretive deal with then-NACF chairman Chung
Dae-kun. Chung has already been indicted for taking 300 million won in bribes
from Hyundai Motor. Park also had allegedly tried to take over another the NACF
subsidiary, Namhae Chemical, by taking advantage of his connection with the Roh
administration. Such a scandal is only the tip of the iceberg.
The giant cooperative has been rocked by a series of corruption scandals over the
last 10 years. Past governments had struggled to reform the NACF but were
systematically blocked by politicians, lawmakers and bureaucrats who wanted to
maintain their corrupt ties with the cooperative. The problem has come to a head.
On Dec. 4, President Lee Myung-bak lambasted the NACF for inefficiency, political
maneuvering and corruption.
On Monday, the cooperative unveiled a restructuring plan to cut its 25
subsidiaries to 16 by 2010 and slash its executives by 22 percent to 11. It also
decided to curtail executive pay by 10 percent and freeze wages for employees for
the next two years. But the steps are not enough. One day later, the Ministry of
Food, Agriculture, Forestry and Fisheries announced a reform plan. An 11-member
committee was formed to work out a reform bill for the NACF by February.
But skepticism persists over whether the Lee administration can succeed. The NACF
has become a mammoth organization with 1,200 local cooperatives. Its assets are
estimated at 160 trillion won ($110 billion), emerging as the nation's fourth
largest financial operation. It goes without saying that the cooperative is a
body for farmers. But the NACF has long been blamed for expanding its banking and
financial businesses while neglecting its core role of promoting agricultural
marketing and rural development.
Most of all, reform should be aimed at forcing the NACF to play its original
role. It is also urgent to limit its chairman's power in a bid to eliminate
corruption. Besides, the cooperative must establish an independent auditing
bureau to better oversee its business operations. It is time for the NACF to be
reborn as an efficient and transparent cooperative to better serve farmers.
(END)
The National Agricultural Cooperative Federation (NACF), better known as Nonghyup, is required to push radical restructuring of its bloated structure, in which its chairman wields unchecked power.
The chairmanship has been an elected post since 1988. However,
it is a shame that the three elected chairmen have been jailed for bribery and
other corruption charges.
Now, the cooperative is under severe criticism because it is again at the center
of a corruption scandal related to its 2006 purchase of Sejong Securities. Roh
Geon-pyeong, elder brother of former President Roh Moo-hyun, was detained last
week on suspicion of taking a huge bribe in return for influence peddling in the
takeover deal. Park Yeon-cha, a long-time supporter and financier of the
ex-president, is also being investigated for allegedly profiting from a dubious
transaction of Sejong shares before the NACF acquired the brokerage house.
Park, chairman of shoemaker Taekwang, also faces allegations that he bought
Hu-Chems, a chemical subsidiary of the cooperative, for a price much lower than
its market value, probably through a secretive deal with then-NACF chairman Chung
Dae-kun. Chung has already been indicted for taking 300 million won in bribes
from Hyundai Motor. Park also had allegedly tried to take over another the NACF
subsidiary, Namhae Chemical, by taking advantage of his connection with the Roh
administration. Such a scandal is only the tip of the iceberg.
The giant cooperative has been rocked by a series of corruption scandals over the
last 10 years. Past governments had struggled to reform the NACF but were
systematically blocked by politicians, lawmakers and bureaucrats who wanted to
maintain their corrupt ties with the cooperative. The problem has come to a head.
On Dec. 4, President Lee Myung-bak lambasted the NACF for inefficiency, political
maneuvering and corruption.
On Monday, the cooperative unveiled a restructuring plan to cut its 25
subsidiaries to 16 by 2010 and slash its executives by 22 percent to 11. It also
decided to curtail executive pay by 10 percent and freeze wages for employees for
the next two years. But the steps are not enough. One day later, the Ministry of
Food, Agriculture, Forestry and Fisheries announced a reform plan. An 11-member
committee was formed to work out a reform bill for the NACF by February.
But skepticism persists over whether the Lee administration can succeed. The NACF
has become a mammoth organization with 1,200 local cooperatives. Its assets are
estimated at 160 trillion won ($110 billion), emerging as the nation's fourth
largest financial operation. It goes without saying that the cooperative is a
body for farmers. But the NACF has long been blamed for expanding its banking and
financial businesses while neglecting its core role of promoting agricultural
marketing and rural development.
Most of all, reform should be aimed at forcing the NACF to play its original
role. It is also urgent to limit its chairman's power in a bid to eliminate
corruption. Besides, the cooperative must establish an independent auditing
bureau to better oversee its business operations. It is time for the NACF to be
reborn as an efficient and transparent cooperative to better serve farmers.
(END)
