6 Builders Probed Over Bid Rigging
Probe Expands to Possible Involvement of High-Ranking Seoul City Officials
By Kim Rahn
Staff Reporter
The prosecution Monday raided six large-sized construction companies suspected of having made rigged bids for subway construction contracts.
The investigation is forecast to expand into the official circle, as prosecutors also summoned officials from Seoul City which had ordered the construction projects.
Dozens of investigators seized documents from the six companies and the headquarters of the Seoul Metropolitan Government Office of Subway Construction. The engineering and construction companies are Hyundai, Daewoo, SK, GS, Daelim and Samsung.
Prosecutors summoned officials from Seoul city and Seoul Metro, a subway operator, last week and questioned them over whether they connived with the companies and whether they received bribes in exchange for the business favor.
The prosecution will question company officials soon. Prosecutors do not rule out the possibility that high-ranking officials of the city government were involved in bid rigging. Lee Myung-bak, presidential nominee of the main opposition Grand National Party, was Seoul mayor at the time of bidding.
In July, the Fair Trade Commission filed a petition with the prosecution against the firms which allegedly agreed that each company would bid for one section of the construction extending the subway line No. 7 in the total six sections.
The commission also levied 22.1 billion won in fines on them.