Former gov`t inspector suspected of bribe taking

Prosecutors will summon Eun Jin-soo, a former inspection commissioner at the Board of Audit and Inspection, as early as Sunday for allegedly accepting huge bribes from Busan Savings Bank Group in return for hiding audit results.

Eun was also reportedly asked by the savings bank to lessen the level of punishment and prevent the suspension of the group’s operation.

Eun and his brother are suspected of taking bribes on three occasions worth a combined 100 million to 200 million won (92,300 to 185,000 U.S. dollars) via a broker close to the savings bank’s vice president Kim Yang. Whether Eun also took a high-priced diamond as a bribe was also under probe.

Eun is also alleged to have participated in deliberations at the Board of Audit and Inspection’s audit committee by hiding the fact that he was a legal adviser to Busan Savings Bank from 2005 to 2007. This is in violation of Article 15 of the Law on the Board of Audit and Inspection, which bars inspection commissioners from auditing persons with whom they have relations.

A source at the government watchdog said, however, “We are investigating the matter as Eun never told us that he worked as a legal adviser to the bank,” adding, “Though this allegation turned out to be true, we need to review legal principles to see if we can question his work as a legal adviser three years ago.”

In addition, a prosecutor went to Cambodia Thursday to investigate the allegation that part of investment funds worth more than 500 billion won (462 million dollars) for a development project in Cambodia went to an overseas paper company.

For the probe, prosecutors reportedly asked for help from Cambodian law enforcement agencies and analyzed entry and departure records of the group’s major shareholders and details of their investments.

After obtaining accounting books and details of the bank accounts of a special purpose company that major shareholders established for development projects in Cambodia, prosecutors will begin a full-fledged investigation into money flow.

The Seoul Central District Court also investigated Friday Park Hyung-sun, a major shareholder of the banking group and chairman of Haedong Construction, before issuing an arrest warrant for him. Park was alleged to have used the special purpose company to take out illegal loans by putting up as collateral real estate that had no value.

ceric@donga.com