Roh Orders Reinvestigation of Financial Scam
Video Clip Corners Lee Myung-bak
By Yoon Won-sup
Staff Reporter
President Roh Moo-hyun ordered Sunday the prosecution to reinvestigate a financial fraud scam allegedly implicating presidential candidate Lee Myung-bak of the Grand National Party (GNP).
The instruction came after wide circulation on the Internet of a video clip in which Lee publicly said he created the fraud-ridden BBK asset management company.
``President Roh called Justice Minister Chung Soung-jin and ordered him to consider a reinvestigation of the case to clear up lingering public skepticism over Lee's innocence in the fraud allegations,'' said Jeon Hae-chul, presidential secretary for civil affairs.
Roh told the minister to find the most effective way to reinvestigate the case even as lawmakers deliberate a motion to name a special prosecutor today.
It is expected that the justice minister will order the prosecutor general to look into the allegations against Lee again irrespective of whether the National Assembly passes the motion to name an independent counsel. The GNP said it will block the move even at the risk of a physical clash in the Assembly. However, if this is the case, the prosecution will still be asked to revisit the allegations against Lee.
Roh's instruction has sent a shock wave through the GNP camp just three days ahead of the election. Even if Lee wins, his presidency could still be plagued by the affair.
The presidential secretary said although the prosecution had cleared Lee of all financial fraud allegations, the public has yet to be convinced of the innocence of the former Seoul mayor. That is why Roh made a rare request three days before the presidential election, he added.
Roh's instruction came after the pro-government United New Democratic Party (UNDP) revealed a video clip in which Lee appeared to say he established BBK, the main investment company involved in the financial scam.
In the video clip, Lee said, ``I set up an Internet financial company. And (I) established an investment advisory company, BBK in January this year (2000).''
The footage was recorded on Oct. 17, 2000 when Lee gave a lecture to top CEOs at Kwangwoon University in Seoul.
``I'd like to show high-tech financial skills to Korea,'' Lee said in the clip. ``I'll make a profit in the first year of establishment of a company with a new profit model.''
If Lee had meant in the lecture that he established BBK, his remark directly runs counter to his repeated position that he had nothing to do with the company.
The prosecution concluded on Dec. 5 in its investigation into the scam that it couldn't find any concrete evidence that Lee was involved in the scam. But the prosecution indicted Kim Kyung-joon, Lee's former business partner, for embezzling 39 billion won in company funds and manipulating stock prices.
The UNDP leaders made public the recording of Lee's lecture in a hurriedly-arranged press conference Sunday. The party said they obtained the recording on DVD from a suspect whom the police arrested for threatening to reveal it to the GNP.
The UNDP and other parties urged the former Seoul mayor to withdraw his candidacy after apologizing to the people. Chung Dong-young, the UNDP's standard-bearer to run for the presidency, said, ``The truth will prevail ultimately.''
Independent candidate Lee Hoi-chang said the prosecution should investigate the scam again, otherwise, the National Assembly will pass a bill to launch an independent investigation of the fraud case.
However, Lee Myung-bak and his party discounted the revelation, while the prosecution also said the video footage will not spark a reinvestigation of the so-called BBK scandal.
Rep. Park Hyung-joon, the GNP spokesman, said he reported the video to Lee and Lee instructed the GNP members to act confidently because he has been cleared of financial fraud allegations.
Rep. Hong Joon-pyo of the GNP said there is nothing new on the video because Lee didn't mention the real establisher of BBK and the date of establishment was wrong. Actually, BBK was launched in April 1999.
In addition, Hong raised suspicions of a deal between the UNDP and the DVD provider.
``A UNDP lawmaker first suggested giving over three billion won to the provider of the recording, and the price went up to 10 billion won,'' Hong said. ``The UNDP candidate, Chung Dong-young even talked to the suspect on the phone.''
Park asked the police to investigate the deal because the GNP secured a voice recording in which a UNDP lawmaker negotiated with the DVD holder to give three billion won if the video showed Lee's establishment of BBK.