ID :
32585
Thu, 11/27/2008 - 06:51
Auther :
Shortlink :
https://www.oananews.org//node/32585
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Brother of former President Roh faces summons over bribery scandal
SEOUL, Nov. 26 (Yonhap) -- Prosecutors said Wednesday they will summon the elder brother of former President Roh Moo-hyun, who has emerged as an alleged key figure in a widening influence-pedaling scandal involving the 2006 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.
Roh, who was formerly convicted of bribery in another influence-pedaling scandal
that led to a suicide of a prominent businessman, has denied the allegations. Roh
Moo-hyun has yet to comment on the latest scandal.
Prosecutors are currently scrutinizing his bank accounts for evidence of bribery
and plan to summon him soon, said Choi Jai-kyeong, spokesman for the Supreme
Prosecutors' Office.
"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, a 66-year-old rice farmer, denied the bribery allegations and
said he will cooperate with the investigation. Prosecutors imposed a travel ban
on him.
"From the time my younger brother was in the legislature, I have known Mr. Jeong
Hwa-sam (one of the lobbyists) who visited my house a few times, but people like
us who live on farming can't receive such a big amount," he told Yonhap over
telephone. "I haven't done anything to let people down."
Roh Moo-hyun took office in 2003 on a pledge of "clean politics," seeking a break
with his predecessors whose ethical image was often shattered by their sons'
influence-pedaling scandals. Roh's children largely stayed out of public sight,
but his brother often made headlines with scandals. 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 Construction.
The Daewoo Construction chief, Nam Sang-kook, jumped into the Han River after
then President Roh publicly shamed him during a public conference broadcast
nationwide.
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 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.
Roh, who was formerly convicted of bribery in another influence-pedaling scandal
that led to a suicide of a prominent businessman, has denied the allegations. Roh
Moo-hyun has yet to comment on the latest scandal.
Prosecutors are currently scrutinizing his bank accounts for evidence of bribery
and plan to summon him soon, said Choi Jai-kyeong, spokesman for the Supreme
Prosecutors' Office.
"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, a 66-year-old rice farmer, denied the bribery allegations and
said he will cooperate with the investigation. Prosecutors imposed a travel ban
on him.
"From the time my younger brother was in the legislature, I have known Mr. Jeong
Hwa-sam (one of the lobbyists) who visited my house a few times, but people like
us who live on farming can't receive such a big amount," he told Yonhap over
telephone. "I haven't done anything to let people down."
Roh Moo-hyun took office in 2003 on a pledge of "clean politics," seeking a break
with his predecessors whose ethical image was often shattered by their sons'
influence-pedaling scandals. Roh's children largely stayed out of public sight,
but his brother often made headlines with scandals. 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 Construction.
The Daewoo Construction chief, Nam Sang-kook, jumped into the Han River after
then President Roh publicly shamed him during a public conference broadcast
nationwide.
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 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.
