Ex-president's brother questioned over receiving NIS funds
By Lee Kyung-min
The prosecution questioned Lee Sang-deuk, the elder brother of former President Lee Myung-bak, Friday, over allegations he received money from former National Intelligence Agency (NIS) chief Won Sei-hoon, in return for exerting undue influence with lawmakers that demanded Won’s resignation over a botched intelligence operation. The questioning is the latest development in the ongoing investigation into the former president, whose family members are coming under growing suspicion over a wide range of alleged wrongdoings mostly concerning abuse of the presidential office.
The elder Lee, 83, arrived at the Seoul Central District Prosecutors’ Office in an ambulance from the Seoul National University Hospital, where he had been staying for treatment after he lost consciousness during lunch, Wednesday.
Assisted by his aides and prosecution officials, Lee was taken inside the building in a wheelchair without answering any questions.
The prosecution suspects Lee received hundreds of millions of won (hundreds of thousands of dollars) in agency funds from Won in early 2011 amid mounting criticism over his incompetence, after NIS officials, who attempted to secretly obtain confidential data from an Indonesian presidential delegation, had their cover blown. A member of the Indonesian delegation saw a group of men _ who later were confirmed to be NIS officials _ attempt to “obtain” a laptop belonging to a member of the delegation at Lotte Hotel in downtown Seoul in February 2011. Lawmakers in unison demanded the agency be dissolved and the chief resign over such a “shameful failure.” But Won managed to retain the post, which prosecutors believe was the result of Lee’s influence and clout within the Assembly. The suspicion is substantiated by a statement from a former NIS official who told the prosecution he gave agency funds to Lee under orders from Won.
Meanwhile, the investigation into Lee is expected to gain momentum following a statement from Kim Paik-joon, a key former aide to the former president. Kim, who was arrested on Jan. 17 following a court-issued arrest warrant, recently admitted to receiving NIS funds, reversing an earlier statement. Kim said the former president was deeply involved in receiving and spending the funds, denying allegations he was never allowed to use the money for personal benefit. The prosecution may question former first lady Kim Yoon-ok, following statements from Kim Hee-jung, a key former aide to her husband for 15 years, who said in a recent media interview he gave $100,000 in agency funds to a former Cheong Wa Dae official who then gave it her.
The questioning also comes amid an intensifying prosecution investigation into DAS, a scandal-ridden company many believe Lee Myung-bak used to manage 12 billion won ($11 million) in slush funds. Investigators from the Seoul Central District Prosecutors’ Offices searched the company headquarters and a company affiliate in Gyeongju, North Gyeongsang Province, Thursday, to confiscate documents and computer hard drives. Prosecutors searched the homes and offices of the affiliate, owned by a man who was earlier questioned by special counsel Jeong Ho-young over suspicions he managed the former president’s personal wealth including the slush funds in 2008.
Prosecutors believe Lee Myung-bak managed the slush fund using the affiliate, whose controlling stake used to be held by a woman surnamed Kwon, the sister-in-law to the former first lady. Kwon paid an inheritance tax with part of the controlling stake, thereby forfeiting the controlling stakeholder status, further raising suspicion Lee Myung-bak was the de facto owner of DAS. Prosecutors believe the former president used multiple government agencies to ensure the recovery of what could have been a failed investment of 14 billion won via DAS, which was among only a few investors that recovered the initial investment, unlike 5,500 others who lost 100 billion won in a stock rigging scandal in 2001.