Public Official Steals State Funds after Property Sale

The Board of Audit and Inspection (BAI) began a full-scale audit of corruption on August 30, including an investigation into the actual condition of preserved state-owned and public properties, occupation of state property without permission, usage negligence, and embezzlement during the managing process, saying that state-owned and public properties are managed loosely.

Before commencing this audit, the BAI announced that it decided to indict the office in charge to the prosecution, exposing the fact that the official in charge of state-owned property in Hwasung City of Gyeonggi Province forged the mayor’s credentials and stole 430 million won of proceeds from a state-owned property sale through a recent preliminary inquiry.

There also was a problem in managing state-owned and public property, shown in the example that 4.65 million m² of a railway site for the East Sea central line and East Sea northern line, which was bought during Japanese colonial rule by the government, was neglected without any proper measure of practical use although they have long lost their function as a railway site due to the steep curves.

The BAI explained the reason for starting the audit, saying, “While local governments are managing most state-owned properties by the government entrust, they are only making themselves busy about maintenance of the status quo and failing in making an effort to grasp the situation and making the best use of it.”

The BAI plans a concentrated audit until October 22, targeting 17 central administrative bodies that have state-owned properties valued at more than one trillion won including the Ministry of Finance and Economy, 41 local governments that have state-owned and public properties valued at more than 150 billion won, such as Seongnam, Gyeonggi Province, and 16 educational bodies.

Yong-Gwan Jung yongari@donga.com