Probe Into Kickback Case Involving Nuclear Operators Expanding
By Kim Tong-hyung
Staff Reporter
The Korean government is expanding its probe into a kickback- for-contracts case involving employees of its nuclear power firm and a California-based vendor. Knowledge Economy Minister Lee Youn-ho ordered a thorough investigation into the case Sunday, vowing severe punishment for those found to be involved.
“Not just contracts made during the 2003-2007 period but also those for last year will be put under scrutiny for any irregularities,’’ Lee said during an emergency meeting with related officials.
Meanwhile, the Korea Hydro Nuclear Power (KHNP) will be forced to air its dirty laundry in public as it struggles to contain the corruption scandal erupting from its murky dealings with a California-based valve maker.The state-owned nuclear and hydroelectric power company will examine the business practices of around 200 employees who were “directly or indirectly” involved in the purchasing of valves for its power plants between 2003 to 2007, company officials said.
Richard Morlock, the former finance director of Control Components Inc. (CCI), recently pleaded guilty to paying around $628,000 in bribes to officials with state-owned energy companies in Korea, China, Romania and Saudi Arabia, the United States Justice Department said.
“We have confirmed that we purchased products from the U.S. company from March 2003 to August 2007, and rounded up the list of employees who were responsible for securing valve contracts during that period,” said a KHNP spokesman, adding that employees found to be involved in the irregularities would be punished by “legal and administrative” procedures.
CCI designs and manufactures service control valves for nuclear, oil and gas, and power generation industries worldwide. Morlok, who was thecompany’s finance director from 2002 to 2007, admitted that CCI earned approximately $3.5 million in profits from the contracts it obtained as a result of the corrupt payments, the Justice Department said.
According to court documents, bribes were paid to officials at KHNP, China’s China National Offshore Oil Company, Petro China and Jiangsu Nuclear Power Corporation, Romania’s Rovinari Power and Saudi Arabia’s Safco.
Morlok is the second CCI official to plead guilty to violating the U.S. Foreign Corrupt Practices Act. Mario Covino, a former director of worldwide sales for the company, pleaded guilty last month on charges of paying $1 million to officials with state-run enterprises in 12 countries.