Audit begins on public funds infusion today

The Board of Audit and Inspection said Sunday a special audit of the public funds to bail out and restructure banks and failed businesses would be undertaken from Mar. 12 to May 2. The audit will take stock of the spending of 116.4 trillion won out of a total of 129 trillion allowed for that purpose by the end of last year, exclusive of 12.6 billion won that was accounted for in 1999. The examination will focus on determining the efficiency and transparency of fund management and supervision.

Subject to inspections are five agencies charged with managing public funds, namely the Ministry of Finance and Economy, the Financial Supervisory Commission, the Financial Supervisory Service, the Korea Deposit Insurance Corporation and the Korea Asset Management Corporation, as well as 12 banks, 24 merchant banks, two investment-trust companies and 65 financial institutions that were closed down.

More than 80 staffers from the board will be assisted in the special inquiry by 26 independent specialists, including public accountants, lawyers, insurance assessors and securities analysts. The audit will look into the selection of troubled institutions for financial help and the actual infusion of funds, inspection and supervision of these fund recipients, recovery of appropriated funds, results of restructuring and the efficacy of fund use.

Boo Hyung-Kwon bookum90@donga.com