Public Corporations under MOCT Wasted 145.8 Billion won in Budget

It has been found that the Ministry of Construction and Transportation and 12 public corporations under the Ministry has spent wastefully a total of 145.8 billion won from budgets since 2002.

According to a report on the Board of Audit and Inspection`s inspection and the Ministry`s own inspection into inappropriate use of budget after 2002, submitted by the Ministry to Rep. Rim In-bae of the Construction and Transportation Committee of the National Assembly, the Ministry wasted budget in buying wrong products or pushing for irrelevant projects.

Five provincial land management administrations under the Ministry of Construction and Transportation wasted about 92.2 billion won, the largest figure per an organization, due to frequent changes of design in pushing for projects.

Korea Highway Corporation wasted about 35.5 billion won because of inappropriate construction methods while the Korea High Speed Rail Construction Authority sustained a loss of some 6.3 billion won due to miscalculation of construction expenses.

In addition, Korea National Housing Corporation wasted 5.7 billion won, Korea Water Resources Corporation 3.8 billion won, and Korean National Railroad 1.9 billion won.

"A total of 145.8 billion won was wasted, which is a waste of opportunity cost," Rep. Rim said. He pointed out that thorough management and inspection against indiscreet implementation of budget should be conducted, considering debts of these organizations exceed 44 trillion won. However, according to the lawmaker, these organizations explained that they recovered the wasted money disclosed by inspections or reduced costs through change of design.

Min-Hyuk Park mhpark@donga.com