Roh denies cover-up of illegal rice subsidy grab

SEOUL, Oct. 25 (Yonhap) -- Former President Roh Moo-hyun said Saturday that he
was not informed of rice subsidies being diverted to ineligible recipients while
in office, calling the ruling party's attempt to summon him to testify as "a
stupid thing."
"Will they have to call me in and humiliate me? Let's stop the stupid thing," Roh
said on his newly-launched Web site, Democracy 2.0 (www.democracy2.kr).
Recent reports have revealed that a sizable amount of government subsidies
intended to support rice farmers went to millions of non-farming recipients,
including several lawmakers and thousands of government officials, over the past
three years. The scandal has outraged rice growers, many of whom are scraping by
amid an influx of cheaper imported products.
The main opposition Democratic Party has criticized the ruling Grand National
Party (GNP) for falling short of ethical standards. At least two GNP lawmakers
were found to have pocketed rice subsidies.
The conservative party rebutted by alleging that the former president was aware
of the widespread abuse of the rice subsidy system, which was implemented by
Roh's government in 2005, but that he covered it up out of fear it might sway the
2007 presidential election.
Some ruling party members have sought to summon Roh to an ongoing parliamentary
audit session to testify.
"Considering the lists of ineligible recipients reported in the media, they are
people who are close to the Grand National Party. Even if the list was made
public at that time, the Grand National Party would have severely accused me of
intervening in the election," said Roh, who has transformed himself into an
organic rice farmer in his provincial hometown of Bonghwa since he stepped down
in February.
Roh acknowledged that his government is partly responsible for loosely crafting
the system, saying: "We did our best, but it was too late and there was not
enough time."
The rice subsidy system is intended to support low-income farmers whose
livelihoods were hit hard by the opening of the Korean rice market under World
Trade Organization regulations.
Only those who actually produce rice -- excluding those who simply own rice
paddies -- are eligible for the state subsidies, but non-farmers who merely own
land have claimed subsidies to evade property taxes. Receiving a rice subsidy
can be used as evidence of farming, which considerably reduces capital gains
taxes when land is sold.
Reports say at least 500 billion won (US$347 million) in rice subsidies has gone
into the hands of non-farming land owners since the system was implemented.
Authorities have yet to disclose a full list of names of ineligible recipients.