Hospital Head Who Conducted Spinal Operation on President Roh

Special investigators of the Public Fund Fraud reinvestigating ‘the lobbying scandal of the Nara Investment Banking Corp.’ found that the largest shareholder of A Investment Corp., who provided 190 million won of political funds in 1999 to Ahn Hee-jung, deputy director of the National Strategy Institute of the Millennium Democratic Party (MLD) as well as a close aide to President Roh Moo-hyun, was Lee Sang-ho, head of Wooridle Hospital and the doctor who performed a spinal operation on President Roh this year.

The Public Fund Fraud is currently investigating the nature of the funds. The prosecution said that “Mr. Ahn partly admitted to allegations regarding bribery amounting to 190 million won.”

According to an audit report submitted to the Financial Supervisory Commission by A Investment Corp. in 2001, Mr. Lee, together with his wife, held 45% of ownership and was still the largest shareholder in the late half of 1999, when he sent the 190 million won to Mr. Ahn.

The prosecution allegedly secured testimony from Mr. Kwak, president of A Investment Corp. that he was aware Mr. Ahn was working for President Roh when he provided him the money.

Prosecutors are thoroughly questioning Mr. Ahn to find out the reasons why and the nature of the funds that A Investment Corp. provided to Oasis Waters, which was headed by Mr. Ahn.

“There is, however, no need to investigate President Roh because it was confirmed that Mr. Ahn was the one who received the illegal political funds from A Investment Corp. and Nara Investment Banking Corp,” said the prosecution.

During the warrant judge hearing at Seoul District Court, Mr. Ahn reportedly said, “It is regretful that I was arrested in violation of the Political Fund Law because I received money from Nara Investment Banking Corp and A Investment Corp in return for nothing.”

Mr. Ahn refused to affix his signature seal to an interrogation report in defiance of excessive measures by prosecutors the previous night. This is the first time ever that prosecutors completed its interrogation report without the signature of a suspect as well as received an arrest warrant.

The prosecution suspects that Mr. Ahn has recently made several contacts with Hyo-keun, younger brother of Kim Ho-joon, ex-president of Bosung Group, in an attempt to destroy evidence. The prosecution intends to interrogate Mr. Ahn separately from other suspects concerning the nature of the funds.

Mr. Ahn apparently changed 190 million won provided by Mr. Kwak into 19,000 shares for his firm, Oasis Waters, then immediately sold them to a third party. Mr. Kwak then waived off Mr. Ahn`s debt. The prosecution believes the funds were for political purposes.

It has also obtained circumstantial evidence that Mr. Ahn received a large amount of funds from an unknown source in addition to the 390 million won from Nara Investment Banking Corp and A Investment Corp. in 1999 and is conducting an investigation.

The prosecution declared news reports groundless when they said: “Prosecutors have concluded that they might have to investigate President Roh in order to find out the reason behind the provision of 200 million won to Mr. Ahn.”

They requested the Press Arbitration Commission to force related news agencies to correct their previous reports.

Wi-Yong Jung viyonz@donga.com