Presidential office cautions on closure of prosecution unit

Senior prosecutors agree to continue bank probe

By Na Jeong-ju and Park Si-soo

Cheong Wa Dae expressed a de-facto objection to the National Assembly move to scrap a key investigation unit at the prosecution Monday, saying the matter should be dealt with “more cautiously.”

The presidential office’s siding with the prosecution is expected to put pressure on the lawmakers’ move to abolish the Central Investigation Department (CID), a unit at the Supreme Prosecutors’ Office. The unit has looked into major corruption cases involving politicians and senior officials.

“Our position is that we need to take a more cautious approach toward the abolishment of the CID,” presidential spokeswoman Kim Hee-jung said. “We need the CID to investigate powerful politicians. If it is abolished, the prosecution’s efforts to fight corruption could be seriously undermined.”

Presidential chief of staff Yim Tae-hee convened a meeting of senior secretaries earlier in the day to discuss the controversy over whether to abolish the CID.

Cheong Wa Dae’s official position on the controversial issue came hours after Prosecutor General Kim Joon-gyu said the investigation into a corruption-ridden savings bank will continue regardless of the National Assembly decision to scrap the unit.

“We will carry through the investigation of all corruption allegations involving the bank. We will speak with our actions,” Kim told reporters after a marathon meeting with senior prosecutors over his reaction to the Assembly move. “If a ship goes in the wrong direction, its captain should take full responsibility for it. There is no reason to break up the ship.”

The prosecution suspended its investigation into Busan Mutual Savings Bank the previous day to protest against the lawmakers’ attempts to eliminate the CID.

The unit has led the investigation into Busan Mutual, whose executives allegedly cooked accounting books, committed embezzlement and bribed financial regulators to keep the troubled bank afloat. The bank’s operations were suspended in February due to a liquidity crunch, freezing all financial transactions.

The investigation stoppage came after a special parliamentary committee on judicial reform said Friday its members had decided to push ahead with a bill meant to disband the CID, citing the unit’s “vulnerability” to political pressure.

The controversial move took place at a time when the CID had targeted some lawmakers in both the ruling Grand National Party and opposition parties to question them over their alleged receiving of bribes from bank executives in exchange for helping them avoid state audits.

“What do you think would happen if a marine command center were disbanded at a time when a landing operation was underway? That’s the situation I think we face today,” Kim said. “The prosecution has adhered to its own duty of unearthing corrupt deals no matter how tough the situation is. I wish people will constantly support us and keep watching what we are doing.”

On the heels of the announcement, Kim Hong-il, the CID head, said, “We have already resumed working.”

He said Kim Jong-chang, a former governor of the Financial Supervisory Service, will soon be summoned for questioning over allegations that he overlooked the now-suspended bank’s financial illegalities and exercised his influence to limit audits on banks affiliated with it.

The top prosecutor’s statement was issued nearly four hours after an emergency meeting at the Supreme Prosecutors’ Office that started at 11:30 a.m., with 40 senior prosecutors attending. They skipped lunch, observers said.

Wearing a black suit and tie, Prosecutor General Kim appeared at the office at 11 a.m. after paying tribute at the National Cemetery in Seoul to mark Memorial Day. The stone-faced prosecutor entered his office silently despite a barrage of questions from reporters. Other participants were roaming inside the building or chatting in a group.

Politicians were not happy with the prosecutors’ collective move against the bill.

Sohn Hak-kyu, chairman of the main opposition Democratic Party, lashed out at them, depicting their stoppage as “taking depositors at Busan Mutual hostage” to thwart a justifiable legislative move. He called for an immediate resumption of the investigation.

“It doesn’t make sense for prosecutors to use victims to protect their interests,” Sohn said Monday. “The investigation (into Busan Mutual) should be continued. The top priority of the prosecution is upholding justice, not its own interest.”