POSCO slush fund probe widening
Ex-POSCO E&C vice chairman questionedBy Lee Kyung-min Chung Dong-hwaProsecutors questioned former POSCO E&C Vice Chairman Chung Dong-hwa, Tuesday, over allegations that he played a central role in creating a slush fund while he served in the post from 2009 to 2012.He is also suspected of accepting bribes from the firm’s subcontractors and business partners.His summons came about two months after the prosecution launched an investigation into the “failed energy diplomacy” conducted during the Lee Myung-bak administration.Chung allegedly masterminded the creation of a 10 billion won ($9 million) slush fund while leading the firm’s overseas construction projects.Prosecutors believe behind Chung was former POSCO Chairman Chung Joon-yang, who maintained close relations with Lee’s aides. The former chairman is also likely to be summoned soon.The prosecution said it will determine whether to seek a detention warrant for Chung Dong-hwa.Five former and incumbent POSCO E&C officials have been indicted for their alleged roles in creating and
