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South Korea Approves Samsung Probe
SEOUL,
South Korea – South Korea’s National Assembly passed a bill Friday
demanding an independent investigation into allegations of bribery at
the Samsung Group conglomerate.The bill was to go to President Roh
Moo-hyun for final approval. His office has said he may veto it because
state prosecutors have already launched a probe into the scandal at the
country’s largest industrial group, which includes Samsung Electronics
Co.The single-chamber legislature, however, can override a veto if a
majority of its 299 members attend a floor vote and two-thirds of them
vote in favor.A total of 155 lawmakers voted for the bill Friday, 17
cast ballots against it and 17 abstained. A total of 110 lawmakers were
absent and did not vote.The legislation calls for Roh to name an
independent counsel to delve into allegations against Samsung,
including that it operated slush funds to bribe influential figures
such as prosecutors, judges and government officials.Other
accusations include claims Samsung manipulated evidence and witnesses
in a court case over a purported deal that critics say was aimed at
transferring corporate control of Samsung from the group’s chairman,
Lee Kun-hee, to his only son.The lawmakers have cast doubt on whether
state prosecutors could effectively carry out a probe given that some
were among those accused of accepting bribes, saying in the bill that a
probe by those investigators “cannot earn the people’s confidence.”The
allegations cited by the legislation are based on the claims of a
former top Samsung legal affairs official, who this month went public
to reveal the alleged wrongdoing.Kim Yong-chul, himself a former
prosecutor, said he was responsible for bribing those in the legal
field and claimed that Lim Chai-jin – the nation’s new top prosecutor –
was among those who took payments. Lim has denied the allegation.Two
civic groups subsequently filed a criminal lawsuit against Samsung,
prompting state prosecutors to open a probe.On Thursday, Samsung, which
has vociferously denied the allegations, expressed regret over the
lawmakers’ impending action, but said it would cooperate with an
independent probe. On Friday, the business group said it stood by that
comment.The bill’s passage – the seventh time a special prosecutor has
been approved by the National Assembly – came after lawmakers reached a
deal to combine two separate proposals into a single bill.A coalition
of liberal lawmakers, many aligned with Roh, agreed to a proposal by
conservatives to also investigate their claims that Roh received
Samsung money before and after the 2002 election.The legislation does
not cite Roh by name but states that those in “the highest political
echelon” allegedly received illicit funds from Samsung during and after
the 2002 presidential race.”We have already said we can consider the
veto rights and that is still effective,” Cheon Ho-seon, Roh’s
spokesman, told reporters. But he added a final decision would be made
after receiving the bill.The legislation calls for Roh to appoint an
independent counsel out of three candidates recommended by the Korean
Bar Association. The special prosecutor, aided by 33 assistant
investigators, can investigate for up to 105 days.Huge South Korean
industrial groups such as Samsung are not new to scandals. The
conglomerates have regularly been accused of wielding influence as well
as dubious dealings between subsidiaries to help controlling families
evade taxes and transfer wealth to heirs.Korean president denies Samsung bribe
Statement follows call from lawmakers for full investigation
Samsung
is facing an investigation over allegations that its controlling
Samsung Group bribed politicians and officials.A large majority of
Korean legislators has voted in favour of a special bill that mandates
an investigation.”The full truth will be uncovered whether a special
counsel is appointed or not,” Korean president Roh Moo-hyun said on
Saturday, according to reports in Chosunilbo.”They can investigate
[Samsung’s] slush funds. I did not receive a cash gift from Samsung to
congratulate me on my election.”However, government sources hinted to
local reporters that Roh Moo-hyun could still block the investigation
on the ground that prosecutors are already working on the case.The bill
also calls for an investigation into allegations by opposition
politicians that effective control of Samsung could have been
transferred illegally from group chairman Lee Kun-hee to his
son.Samsung’s former chief counsel claimed that he is able to name 40
high ranking judicial officials, politicians and bureaucrats whom he
alleges have received bribes from the company.Last week, a presidential
aide claimed that a Samsung executive had tried to give him a $5,000
gift in 2004. He described it as a “brazen attempt to bribe a
presidential aide in charge of fighting corruption”.Up to 40 officials
will spend three months on the investigation, if it is approved, led by
an independent counsel. The investigation is expected to begin in
January, according to the Korea Herald.”If an independent counsel is
brought in at the current juncture it would hurt the companies and
state agencies in a way that would make it hard for them to regain the
public’s confidence,” justice minister Chung Soung-jin warned
legislators.”There could be serious damage done to the national economy
and the country’s international credit rating.”
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