GNP calls for special counsel over bank corruption

By Kim Se-jeong

Conservative lawmakers called for the appointment of a special prosecutor Wednesday to investigate the expanding bribery scandal involving savings banks and two high-ranking auditors.

The motion was made by pro-reform members of the ruling Grand National Party (GNP).

Rep. Chang Je-won said, “The National Assembly probe won’t hold anyone accountable. But, if the special prosecutor bill is passed, those who committed wrongdoings will be brought to justice.”

The call followed the Assembly’s bipartisan decision to launch a parliamentary investigation into the scandal.

The scandal became public after the suspension of operations at Busan Mutual Savings Bank in February.

Insiders and important customers had been tipped off about the move and were able to withdraw their money before the suspension, whereas the majority of customers had to suffer the consequences.

The pent-up public anger forced the authorities to initiate a probe, which has so far unveiled the involvement of two former auditors of the Board of Audit and Inspection (BAI) in allowing the bank to keep operating despite its unhealthy financial status. The BAI is responsible for monitoring financial institutions among others.

The proposed bill also puts other small banks under scrutiny.

Both investigations are expecting an uphill battle.

At the Assembly, parties hardly discussed details of their own investigation, including selecting witnesses. And if the probe by a special prosecutor is approved, several lawmakers are expected to be summoned for questioning.