ID :
24699
Wed, 10/15/2008 - 19:42
Auther :

Controversy spreads over officials' pilfering of state farming subsidies

By Shin Hae-in
SEOUL, Oct. 15 (Yonhap) -- A widening corruption scandal is engulfing South Korean politics as allegations fly that ranking government officials pocketed state subsidies by claiming they farmed rice.

The state audit agency recently revealed that a chunk of state money aimed at
supporting rice producers had gone to tens of thousands of unqualified people in
2006 alone, including 40,000 public servants and their family members.
The case is snowballing into political warfare as opponent parties claim more
than 100 incumbent high-ranking officials also applied for the money, including
President Lee Myung-bak's vice health minister.
The rice farming subsidy system was established in 2005 under the former Roh
Moo-hyun administration to support low-income farmers who protested the opening
of the Korean rice market to cheaper overseas products.
Only those who actually produce rice, rather than owners of the rice paddies,
were promised subsidies to make up for the losses from fallen prices after trade
agreements took effect.
Rival parties are locking horns over which administration is more to blame for
the latest corruption scandal involving public servants, with both sides saying
they are ready to take the case to a parliamentary probe if necessary.
The main opposition Democratic Party called for the immediate dismissal of Vice
Health Minister Lee Bong-hwa -- who first ignited the scandal -- and criticized
President Lee for making yet another blunder in choosing Cabinet members.
The scandal first made headlines when a local newspaper reported that Vice
Minister Lee applied for subsidies by filing false reports that she herself
farmed rice. The application was made just one day before her appointment to the
post in February, the report said.
"There can be no further disputes on this matter. President Lee must dismiss the
vice minister at once and inspect all top officials who have fallen under
suspicion," opposition party floor leader Won Hye-young said. "This is not the
time to defend them."
The presidential office has yet to make a decision regarding the vice minister.
The Democratic party says at least six other top officials in the Lee
administration, including Prime Minister Han Seung-soo, are implicated in the
case. Han angrily denied the accusation Tuesday.
The Board of Audit and Inspection was to make public further audit results later
Wednesday, but will not disclose individual names as recipients are categorized
by profession.
While simultaneously vowing not to be lenient in the case, the ruling Grand
National Party is also holding the former government accountable for failing to
address the matter earlier on.
"The subsidy system was set up under the Roh government and 40,000 public
servants and 6,000 officials of state-run companies have snatched the money,"
said ruling party whip Hong Joon-pyo. "Investigators must get to the bottom of
this case, whether these people belonged to the former or the incumbent
government."
According to the audit board's report, 170,000 of the 998,000 people who received
rice farming subsidies in 2006 were "non-farmers." Of those, about 4,400 were
listed as public servants, while 6,200 were employees of state-run corporations.
Non-farmers received 168.3 billion won (US$135.7 million) in 2006, more than 10
percent of the total rice farming subsidy of 1.62 trillion won given that year.

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