Ranking audit officials offer to resign in rice subsidy row

SEOUL, Oct. 28 (Yonhap) -- Twelve top-ranking officials of the state audit board on Tuesday offered to step down, holding themselves responsible for the escalating controversy over the widespread snatching of state rice farming subsidies by civil servants, the Board of Audit and Inspection (BAI) said.

Recent reports revealed at least 500 billion won (US$341 million) in government
subsidies intended to support rice producers went to millions of ineligible
applicants -- including government officials and legislators -- over the past
four years, triggering widespread anger among the nation's farmers.
The BAI has been at the center of the snowballing scam for failing to disclose
the names of related officials and legislators last year, despite growing
pressure from farmers and opposition parties. Although the chief auditor has
promised to restore old files holding the names of illegal recipients, he did not
make clear whether they will be made public.
The ruling party, meanwhile, accuses the audit board of deliberately hiding the
matter from the public when illegal pocketing by officials was first detected in
2006 under the former Roh Moo-hyun government.
"Each of the 12 officials tendered a resignation to BAI Chairman Kim Hwang-sik,"
a BAI official told Yonhap News Agency. "I believe they felt morally responsible
for the public criticism that our measures fell short in dealing with the issue."
It remains to be seen whether the chief auditor will accept the resignations.
Thousands of farmers nationwide have been launching protests almost every day
since the case first made headlines earlier this month, when the vice health
minister was found to have applied for the money by falsely claiming she farmed
rice. The disgraced vice minister was replaced earlier this week.
The case, involving at least 4,000 public servants, threatens to erode the
credibility of the eight-month-old Lee Myung-bak government as it strives to fend
off a growing financial crisis and put reform programs back on track.
The scandal is also an embarrassment to the main opposition Democratic Party,
which was in power when the malfeasance took place and state auditors allegedly
hid the fact from the public.
The rice farming subsidy system was established in 2005 under the liberal Roh
administration to support low-income farmers who protested the opening of the
Korean rice market to cheaper imports. Only those who actually produce rice --
not those who simply own rice paddies -- are eligible for the state subsidies.
South Korea, traditionally a rice-farming nation, has seen a sharp decline in the
number of farmers in the last few decades. Within the past 13 years, the number
of farmers shrank to 3.5 million from 5.5 million, according to government data,
as they become increasingly vulnerable to cheaper imported farm products and poor
living conditions.
Observers say officials and legislators who own land likely applied for the
subsidies in order to evade heavy property taxes, as the country's tax law
requires individuals to farm the land for at least eight years to receive tax
deductions. It does not require proof that the applicants are the actual farmers.