By Na Jeong-ju
Staff Reporter
President Lee Myung-bak faces his first serious leadership crisis since the wave of public protests in June last year against his decision to resume U.S. beef imports despite concerns over mad cow disease.
At the center of controversy this time is whether his aides forced a senior tax official ― who reportedly had crucial information about Lee's "hidden" properties in southern Seoul ― to quit.
Opposition parties call the case a ticking time bomb. In the worst-case scenario, Lee may become an early lame duck and another South Korean head of state to see some of his aides and relatives go to jail for corruption charges.
The tax official, Ahn Won-goo, acquired the data during an audit of POSCO Engineering & Construction, a subsidiary of the world's fourth-largest steelmaker, when he was serving as the head of the Daegu Regional Tax Office in late 2007, the main opposition Democratic Party (DP) claimed.
The builder bought the disputed land in Dogok-dong, one of the country's most expensive districts, in 1995 from the co-owners, who on paper were Lee's brother Lee Sang-eun and brother-in-law Kim Jae-jung, but the opposition party suspects President Lee was the actual owner.
When the issue was raised during the 2007 presidential campaign, Lee denied he was the owner.
"In short, the President deceived the people and violated the law obligating all senior public servants to make their personal wealth public, if the allegations are true," said DP lawmaker Song Young-gil, who is now leading the party's task force looking into the case, Friday.
Ahn was arrested at dawn on Nov. 18 for his alleged involvement in a bribery case and is still in custody. He was to meet with DP lawmakers and a journalist later that day, according to Ahn's wife.
Rep. Song suspected prosecutors had "snatched" Ahn because they were worried he might deliver the files on the land ownership to the opposition party.
"The prosecution must get to the bottom of the case in a fair manner. People want to know the truth," Song insisted. "Or we will call for an investigation by the independent counsel."
The governing Grand National Party (GNP) said the DP is launching a political offensive with groundless allegations. "It should stop writing fiction," GNP floor-leader Rep. An Sang-soo said.
Also drawing keen attention is the question of who asked Ahn's boss, former National Tax Service (NTS) chief Han Sang-ryule, to dismiss Ahn.
Another of Lee's brothers, former National Assembly Vice Speaker Lee Sang-deuk, who has stayed away from politics for months after being criticized for peddling his influence in selecting key government officials, is back in the spotlight.
Ahn alleged he met with Lee Sang-deuk twice in early 2008 to talk about the files on the Dogok-dong property and a tax audit on shoe company Taekwang.
Former Taekwang CEO Park Yeon-cha, who was a long-time sponsor for the late former President Roh Moo-hyun, is now on trial on charges of tax evasion and bribery. Roh committed suicide last May while undergoing an investigation for his ties to Park.
"Lee Sang-deuk is President Lee's Achilles' heel," a DP lawmaker said. "He has been living a quiet life these days, but that was not because he changed his lifestyle, but because he had no choice but to do so."
Such revelations are expected to deal a blow to President Lee in pushing his pet projects - the $19 billion scheme to refurbish four major rivers nationwide and the planned revision of the Sejong City project.
Opposition parties have opposed the four-river project, alleging that it will damage the environment and only benefit large builders. They have demanded a significant cut in the proposed budget.
Opinion polls also show that a majority of the public opposes the move to revise the Sejong project.
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