Suspicion of Rapid Growth of Alcohol Beverage Company

The National Assembly`s audit on the Supreme Prosecutors` Office raised a suspicion yesterday that a alcohol beverage company, which hired brother of Ahn Jung-Nam Minister of Construction and Transportation, a former head of the National Tax Service (NTS), made a rapid growth backed by the influences of Minister Ahn.

Rep. Choi Byung-Guk of the Grand National Party (GNP) said, ``Right after Minister Ahn was assigned to the head of the NTS in September 1999, `S` alcohol beverage company, which supply alcohol beverages to the Kangnam area, hired Mr. Ahn (48), Minister Ahn`s third brother, as the executive director. Since then, the annual sales increased from 1 billion won to 10 billion won.``

Choi said that ``since brother of the head of the NTS, which has the power to give and to take away in terms of taxation, is the executive director of the company, what other options does other alcohol business have? Business people say that it is impossible to make 10 time increase in the selling price within a year of hiring Ahn without having a powerful guardian.`` added Choi.

Choi urged for investigation saying that ``Mr. Ahn still works as the executive director of the same company. Regardless of the pressure from the head of the NTS, if Mr. Ahn had run the business by using the head of the NTS, it falls within the purview of the unjust enrichment and the obstruction of rightful act.``

In response to this, `S` company said that ``Minister Ahn`s third brother was hired as the executive director as of August 2nd, 1999, and the selling price increased from 1 billion won in 1999 to 7 billion now. However, since bars never change the business relations unless the change benefits them, we never increased the selling price backed by Minister Ahn`s influence.``

Lawmakers of the ruling and the opposition parties questioned Lee and Yuh Un-Hwan, who attended as witnesses in relation to the G&G chairperson Lee Yong-Ho scandal, at the Assembly`s audit session whether the influential people of the ruling party had offered the political funds during the process of expanding the business, and whether high-ranking prosecutors from a particular region were involved.

Meanwhile, Rep. Ahn Kyung-Ryul of the GNP insisted based on the result of the personal investigation that the second brother (53) of Minister Ahn runs the `D` aggregate company, which obtained the supply right in relation to the contract on the supply of aggregate for the Mooahn International Airport runway construction. Moreover, the youngest brother (36) of Minister Ahn is the chief of the materials department of `K` company, which gave the supply right to the `D`. `K` company is in charge of the Mooahn International Airport construction.

Rep. Ahn said that ``Minister Ahn`s youngest brother entered the `K` company in 1989 and was appointed to the chief of the materials department in September 1999, four months later Minister Ahn`s appointment as the head of the NTS. I am investigating the exact background in which `K` company made a contract with `D` company.``

Minister Ahn`s youngest brother said through the phone communication with the reporter that ``I do not want to make a comment on that. Although I was brother of the head of the NTS, you will see how I have lived if you come and see in my house.`` Minister Ahn is the eldest of 8 siblings (5 sons and 3 daughters).

Lee Soo-Hyung sooh@donga.com