Auditors Prosecuted for Fraudulent Claim of Money to Study Abroad

36 auditors of public and large companies who deliberately claimed excessive sums of public money under the pretext of study abroad programs by the Korean Institute of Internal Auditors were prosecuted, 13 of which were arrested, the Korean Police Agency special investigation Division announced on Tuesday. The Police Agency has reported the other 23 auditors to their corresponding companies.

Since June 1999 until August 20 of this year, the auditors have claimed large sums of public money from the company to go on study abroad programs held by the Korean Institute of Internal Auditors, and then downgraded airflight tickets or rescheduled the program in order to gain a profit from the excess amount, a sum of up to two to seven million won, said the Police Agency. The auditors also did not follow the study program handed in to the company, instead they were spending most of the time sightseeing and shopping.

According to the investigation, a majority of the prosecuted auditors were high officials who were scouted from 31 companies including the Korea Agricultural and Rural Infrastructure Corporation, Korea Water Resources Corporation, Korea Minting and Security Printing Corporation, Korea Racing Association, Korea Plant Service and Engineering, Korea Cadastral Survey Corporation, POSCO, Kookmin Bank, and Korea Financial Telecommunications & Clearings Institute.

Meanwhile the Korean Institute of Internal Auditors secretary-general Choi (64) was arrested for the pocketing 230 million won over the past 4 years, on the charge of the fraudulent claim of public money to study abroad four to five times every year.

“In one company, the money claimed by an auditor was twice the amount of what another employee claimed for the same study abroad program, ” the Police Agency said.

Heon-Jin Lee mungchii@donga.com