Roh aide embezzled gov't money to create slush funds: prosecutors

(ATTN: UPDATES with more details in paras 3-5, 11-12)
SEOUL, April 20 (Yonhap) -- An aide for former President Roh Moo-hyun embezzled 1
billion won (US$747,900) worth of government money to create slush funds, state
prosecutors said Monday.
The Supreme Prosecutors Office claimed Jung Sang-moon, who was detained on
suspicion of taking 300 million won in bribes from a local business tycoon,
siphoned off money set aside for the presidential office Cheong Wa Dae and
deposited the funds into several third-person accounts to avoid detection.
Investigators said the aide and close confident of Roh used various methods,
including certificate of deposits, to launder the money. Because of Jung's status
as a secretary for administrative affairs that overlooks the running of the
presidential office, he had access to roughly 70 billion won in operational funds
each year.
"Only a small amount was used, with the bulk still intact," a prosecutor said,
adding that investigators are trying to determine if the slush funds were created
on behalf of the president or for personal use. He added that the accounts are
now frozen and that if Jung is found guilty, the money will be confiscated.
Others say there is circumstantial evidence linking the 1 billion won accounts
with the former president and noted that former Cheong Wa Dae employees
responsible for bookkeeping are being questioned.
A formal arrest warrant has been requested and prosecutors are expected to slap
Jung with charges of taking the bribe from Taekwang Industry chairman Park
Yeon-cha and the newly discovered slush funds.
The case against Jung comes as prosecutors are gearing up to summon Roh later
this week for questioning over allegations that he received tens of billions of
won in bribes from the business executive during his five-year presidential term,
which ended in February 2008.
Roh's wife, Kwon Yang-sook, and an in-law have been found to have accepted at
least US$6 million and 300 million won from Park between 2006 and 2008.
Prosecutors suspect Roh was the final recipient of those bribes.
In early April, Jung was arrested on separate charges of receiving 400 million
won worth of cash and gift certificates from Park, accepting $30,000 and 8
million won from former Nonghyup Chairman Chung Dae-kun and delivering $1 million
from Park to former first lady Kwon.
A Seoul district court rejected the prosecution's request for an arrest warrant
against Jung and set him free on April 10, citing lack of concrete evidence.
Investigators, meanwhile, said they summoned Roh's son for the fifth time earlier
in the day to determine if he had used money provided by Park. They say the probe
will be expanded to the former president's daughter, who was in the United States
with her husband in 2006.
Insiders close to the ongoing probe said legal action could be taken against the
former first lady and the son, but noted that may not happen as it is believed
the final recipient of the money was Roh.
yonngong@yna.co.kr
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