Value context and insight. lkm@koreatimes.co.kr
Gov't hit for meaningless evaluation of state organizations
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By Lee Kyung-min
By Lee Kyung-min
The Ministry of Economy and Finance came under heavy criticism for what critics call a “meaningless” evaluation of state-run organizations, Monday.
The efficacy of the three-month evaluation, conducted by 10 outside members, has long been called into question, as officials at many public bodies involved in serious corruption ― including hiring fraud or tax evasion ― face no severe consequences other than a forced return of bonuses to the ministry.
The issue was brought to the fore by Rep. Yoo Seung-min of the minor opposition Bareunmirae Party at an audit of the ministry in October.
The lawmaker pointed out that high-ranking officials at Korea Land and Housing Corp. (LH), for example, were found to have been involved in hiring fraud, only months after receiving the highest grade among the entities reviewed.
Similarly, Incheon International Airport Corp. (IIAC), for example, was found to have evaded over 3.3 billion won ($2.8 million) in corporate taxes.
In response to the lawmaker's inquiry, the ministry acknowledged that it sometimes revises the outcome of evaluations upon conclusion or findings made by investigative bodies or the audit agency.
“If the evaluation had concluded for the preset period for a designated year, follow-up measures reflecting the irregularities are implemented a year later,” the ministry said.
Experts called for the government to consider heavier penalties to prevent the recurrence of any wrongdoings by state organizations and their staffs.
“First of all, a pay cut could be an option,” Seoul National University economics professor Kim So-young said. “Given the lack of pre-emptive measures to screen irregularities unless the relevant information is handed over to the ministry within the evaluation period, new measures should map out ways for the public entities to seek transparency voluntarily.”
High evaluation scores matter mostly because of hefty bonuses, he added, and the most effective deterrent is to make them understand grave consequences will be in order if a previous review is retracted due to what could have been foreseeable therefore preventable factors.
“Bonuses gained by certain underserving entities means bonuses lost to other more qualified organizations. This undermines the meaning of fair competition. Once they understand maintaining high standards of morals and ethics in public service is duly awarded, they will be more forthcoming about volunteering what could develop into a liability,” Kim said.