Military starts probe into oil scandal

The Defense Ministry announced July 19 that it launched a probe into the

scandal surrounding excessive payment for jet and diesel fuel (reported July

5 by the Dong-A Ilbo).

The announcement came after Defense Minister Cho Sung-Tae ordered a thorough

investigation into suspicions that some military procurement officials

collaborated with local oil refining firms.

Accordingly, the joint military investigation team, led by Army Major Gen.

Kim Shi-Chon, summoned July 18 several procurement officials who were

involved in purchasing jet fuel from 1998-1999, following private inquiries

into trade books and other related documents. The team is also tracking

banking transactions among the parties concerned under a warrant issued by

the military court, and plans to call in some generals who were or currently

are on active duty.

In addition, the investigation team is trying to determine why military

officials in charge of procurement did not file an objection with the Board

of Audit and Inspection (BAI), although they reported to their superiors

that they did so. The BAI indicated that the military wasted approximately

120 billion won by paying higher prices for airplane fuel than local civil

airlines.