By Yoon Ja-young
Staff Reporter
The government started a special audit of the National Agricultural Cooperative Federation (NACF), or Nonghyup, Tuesday ahead of a shake up of the corruption-ridden and bloated organization.
The Ministry for Food, Agriculture, Forestry and Fisheries has teamed up with the Financial Supervisory Service (FSS) to look into the federation's banking business.
The probe reflects President Lee Myung-bak's strong will to overhaul Nonghyup, criticized for being a hotbed of corruption.
Enjoying a monopolistic status for farmers, the scandal-hit organization that markets agricultural produce and banking services has been notorious as one of the most corrupt organizations in the country. It has had a number of embezzlement scandals, and since 1988 when it started electing its chairman by popular vote, all three former chairmen received jail sentences, with the latest one involving bribing the elder brother of former President Roh Moo-hyun over its acquisition of Sejong Securities.
Reforming the organization was the aim of many former presidents, but none of them have succeeded so far due to deep-rooted corruption and the concentration of power. Former President Roh Moo-hyun even complained that Nonghyup seems to be more powerful than the president himself.
President Lee has shown a firm determination to reform the farmers' bank on a number of occasions. ``The NACF, supposed to work for farmers, makes trillions of won in financial business, (but) causes trouble. It should be returned to farmers,'' the president said last month. He also said in a New Year speech that reform aimed at returning the federation to farmers shouldn't stop.
Cheong Wa Dae said the Nonghyup reform plan will be announced Friday. ``The next target for reform is the National Federation of Fisheries Cooperatives,'' added Cheong Wa Dae spokesperson Lee Dong-kwan, Monday.
The government launched the Nonghyup reform committee, and has audited the organization twice since last November.
However, the current probe is supposed to be carried out in a more thorough and extensive manner. It is the first time the government has examined all of the body's business units, including its banking business. The audit will also include the federation's regional headquarters and affiliated organizations.