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184825
Fri, 05/27/2011 - 09:38
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https://oananews.org//node/184825
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Ruling party chief hints at parliamentary probe into savings bank scandal
(LEAD)SEOUL, May 27 (Yonhap) -- South Korea's ruling party chief said Friday he believes a parliamentary probe should be launched, if necessary, to look into the snowballing savings bank corruption scandal after fresh allegations surfaced that an official at the top state auditor took bribes in exchange for his influence.
The official, Eun Jin-soo, who had served as legal adviser on President Lee Myung-bak's transition team, offered to resign as a top member of the Board of Audit and Inspection (BAI) Thursday following suspicions that he received bribes from Busan Savings Bank as it sought his influence.
Lee immediately accepted the resignation in a move demonstrating his determination to deal sternly with anybody involved in the scandal, officials said. The scandal has dealt a blow to Lee's "fair society" campaign as well as efforts to strengthen his image as a leader who cares for ordinary people.
Aides said Lee expressed deep frustrations over the revelations. After learning of Eun's alleged involvement Thursday, Lee made an unprecedented visit to the office of his civilian affairs secretary handling corruption cases and asked for a thorough probe, they said.
Lee also called for stronger discipline among officials, saying a similar incident should never happen again.
"The president didn't express anger in a big way, but instructed very seriously that a more stern investigation is needed if a case involves people close to us," an official said. "But rather than the president's words, I think his first-ever visit to the civilian affairs secretary's office" carries a stronger message.
On Friday, Grand National Party (GNP) floor leader Hwang Woo-yeo, who is serving as acting party chief, hinted at the possibility of launching a parliamentary probe into the scandal. His remarks illustrate how seriously he considers the scandal that comes at a time when the party is trying to win back public support after last month's humiliating election defeat.
"Once the ongoing probe is completed, I think a parliamentary probe should be conducted if necessary," Hwang said at a meeting of key party officials. "The people are concerned as surprising suspicions surfaced that a sitting member of the Board of Audit and Inspection was involved."
Hwang called for a thorough probe, saying the BAI needs to restore people's trust.
The expanding probe has put both the ruling and opposition parties on edge amid speculation that savings banks' officials staged massive lobbying campaigns that usually involved bribing politicians or government officials.
There have been signs that savings banks sought influence to expand themselves under the previous administration, linked to the main opposition Democratic Party (DP), in addition to seeking help from powerful officials like Eun to avoid punishment for irregularities under the current administration.
"With the investigation of Eun, I think the prosecution's probe of politicians and government officials will get into full swing," a GNP official said. "The names of some ruling and opposition politicians are already being mentioned" as possible investigation targets.
GNP lawmakers accused the previous administration of giving a series of favors to savings banks.
But the DP struck back at the GNP, saying the ruling party is attempting to water down corruption by ruling camp officials.
The scandal has been a top political and social issue in South Korea for months.
The chief and other large shareholders and executives at Busan Savings Bank were found to have taken out billions of dollars in illegal loans from the institution and engaged in other irregularities involving billions more.
Officials from Busan and other ailing savings banks have also been accused of tipping off their employees' relatives and VIP customers about their impending suspension in February so as to help them withdraw their deposits in advance and avoid damage from the suspension.
The official, Eun Jin-soo, who had served as legal adviser on President Lee Myung-bak's transition team, offered to resign as a top member of the Board of Audit and Inspection (BAI) Thursday following suspicions that he received bribes from Busan Savings Bank as it sought his influence.
Lee immediately accepted the resignation in a move demonstrating his determination to deal sternly with anybody involved in the scandal, officials said. The scandal has dealt a blow to Lee's "fair society" campaign as well as efforts to strengthen his image as a leader who cares for ordinary people.
Aides said Lee expressed deep frustrations over the revelations. After learning of Eun's alleged involvement Thursday, Lee made an unprecedented visit to the office of his civilian affairs secretary handling corruption cases and asked for a thorough probe, they said.
Lee also called for stronger discipline among officials, saying a similar incident should never happen again.
"The president didn't express anger in a big way, but instructed very seriously that a more stern investigation is needed if a case involves people close to us," an official said. "But rather than the president's words, I think his first-ever visit to the civilian affairs secretary's office" carries a stronger message.
On Friday, Grand National Party (GNP) floor leader Hwang Woo-yeo, who is serving as acting party chief, hinted at the possibility of launching a parliamentary probe into the scandal. His remarks illustrate how seriously he considers the scandal that comes at a time when the party is trying to win back public support after last month's humiliating election defeat.
"Once the ongoing probe is completed, I think a parliamentary probe should be conducted if necessary," Hwang said at a meeting of key party officials. "The people are concerned as surprising suspicions surfaced that a sitting member of the Board of Audit and Inspection was involved."
Hwang called for a thorough probe, saying the BAI needs to restore people's trust.
The expanding probe has put both the ruling and opposition parties on edge amid speculation that savings banks' officials staged massive lobbying campaigns that usually involved bribing politicians or government officials.
There have been signs that savings banks sought influence to expand themselves under the previous administration, linked to the main opposition Democratic Party (DP), in addition to seeking help from powerful officials like Eun to avoid punishment for irregularities under the current administration.
"With the investigation of Eun, I think the prosecution's probe of politicians and government officials will get into full swing," a GNP official said. "The names of some ruling and opposition politicians are already being mentioned" as possible investigation targets.
GNP lawmakers accused the previous administration of giving a series of favors to savings banks.
But the DP struck back at the GNP, saying the ruling party is attempting to water down corruption by ruling camp officials.
The scandal has been a top political and social issue in South Korea for months.
The chief and other large shareholders and executives at Busan Savings Bank were found to have taken out billions of dollars in illegal loans from the institution and engaged in other irregularities involving billions more.
Officials from Busan and other ailing savings banks have also been accused of tipping off their employees' relatives and VIP customers about their impending suspension in February so as to help them withdraw their deposits in advance and avoid damage from the suspension.
