By Kim Rahn
Staff Reporter
Former President Roh Moo-hyun is facing three major questions in the bribery scandal surrounding his family: Was he involved in the transfer of $5 million and $1 million to his family from Park Yeon-cha, CEO of shoemaker Taekwang, and did he assist in the embezzlement of 1.25 billion won ($946,000) in Cheong Wa Dae funds by his former secretary Chung Sang-moon?
The former President claims his ignorance of the money transactions and embezzlement, but the prosecution is expected to formally indict him on comprehensive bribery charges next week.
They suspect Roh took the $6 million, alongside gifts, in exchange for helping his long-time crony expand a business empire during his presidency.
However, it is still unclear as to whether the prosecution will seek an arrest warrant.
The prosecution may seek the warrant in view of the size of the alleged bribe and Roh's continuous denial of the allegation. But it may not, considering his former president status and the damage to the national image his arrest will entail.
The indictment is likely to come in the middle of next month regardless of whether he is arrested.
If a court rules the $6 million was a bribe, Roh could face up to 10 years in prison, but after a certain period behind bars, he could be pardoned as two former presidents were.
The Taekwang CEO gave $5 million to Yeon Cheol-ho, the husband of Roh's niece, in February 2008, after Yeon and Roh's son, Geon-ho, visited Park's factory in Vietnam in late 2007.
The money was sent from Park's paper company in Hong Kong to the account of Yeon's firm in a tax haven in the Virgin Islands. Out of the money, Yeon transferred about half to another venture capital company he set up there, Elish and Partners.
Prosecutors found that the Geon-ho was the largest shareholder of Elish and Partners and he took control of the $5 million, not Yeon.
The prosecution suspects the $5 million was a bribe paid to the former President. But Roh claimed it was Park's investment into Yeon's company, adding he learned about the deal only after he left office.
In June 2007, Park delivered $1 million in cash to Chung at Cheong Wa Dae. Prosecutors suspect Roh gave the money to his son, who was studying in the United States, for tuition and living expenses, as the former first couple stopped over in Seattle on a trip to Latin America a day after the money was received.
Park also testified that Roh himself called him and asked for the money.
The former President said his wife borrowed the money from Park through Chung to repay a debt and that he also only found this out after his term was over. But both Roh and Kwon did not disclose to whom the money was paid.
Prosecutors recently discovered that Kwon wired $100,000 to her son in 2007 for overseas study expenses. The junior Roh testified that his mother sent the money, and the prosecution suspects the money was part of the $1 million.
Roh's former secretary Chung created a 1.25 billion won slush fund in multiple borrowed-name accounts after embezzling it from the presidential office's coffers around August 2006.
The money was part of a discretionary ``special budget,'' which does not require a spending record and is free from a National Assembly audit.
As presidential secretaries are supposed to report the use of the special budget to the President, prosecutors suspect Roh was aware of the embezzlement. They are looking into whether it was done at his request.
Chung claimed that he raised the slush fund for when the former President left office and the latter knew nothing about it ― something Roh also claimed.
Besides the $1 million, Park delivered 300 million won to Chung. Roh's aides claimed that Kwon borrowed the money as well, but prosecutors found that Chung kept the money in false name accounts through complex laundering.
Roh is also suspected of having taken $30,000 from former Nonghyup head Chung Dae-kun and two luxury watches worth 100 million won each from Park in September 2006 ahead of his 60th birthday. The former President claimed Kwon received it and he did not know about the ``presents.''