Justice Ministry Declines to Reinvestigate Financial Scandal

The Justice Ministry said Monday it has decided not to order prosecutors to reinvestigate a financial scandal allegedly involving the nation's leading presidential candidate, as political parties seek an independent probe of the case.

President Roh Moo-hyun Sunday instructed the Ministry of Justice to consider ordering the prosecution to review its recent conclusion in a 2001 financial fraud case. Critics allege Lee Myung-bak, the presidential nominee of the main opposition Grand National Party (GNP), was involved in the fraud.

Prosecutors are guaranteed independence by law in investigating criminal cases. But justice minister is also empowered to intervene in specific cases.

Earlier this month, prosecutors cleared Lee of involvement in the alleged crime.

Lee had been suspected of involvement in the scam case in which his former business partner, Kim Kyung-joon, allegedly manipulated stock prices of his now-defunct asset management company BBK and

embezzled company funds. Kim was accused of misappropriating company funds totaling 38 billion won ($42 million).

Lee's clearance by the prosecution appeared to have removed the final hurdle for the front-running candidate. Lee has been enjoying a comfortable lead with an approval rating of over 40 percent in most recent public surveys despite suspicions surrounding his morality.

The president's rare and sensitive instruction came after the pro-government United New Democratic Party (UNDP) earlier on Sunday disclosed a video clip which might buttress critics' claim that Lee of the main opposition Grand National Party (GNP) has established BBK.

Prosecutors have exonerated Lee of the charges he was involved in the financial scam.

"As an independent counsel seems soon to be launched by the National Assembly, the Justice Ministry decided not to order the prosecutors to reinvestigate the case," the Ministry of Justice said Monday in a statement.

For the last few days, opposition lawmakers have been physically squaring off with their rivals over a bill that calls for an independent counsel to look into the scam. The bill was pushed by the pro-government lawmakers.

Front-runner Lee said late Sunday that he will not oppose the bill on an independent counsel probe of the allegations. His party has opposed the bill.

Justice Minister Chung Soung-jin and ranking ministry officials held discussions over whether to follow Roh's special instruction through the night.

"If the bill on the independent counsel passes in the National Assembly, the Justice Ministry will humbly accept it, regarding it as what our people want," the statement continued.

"We sincerely hope, however, that the political intentions do not damage people's confidence in the prosecution, which puts the constitution and the protection of people's rights above all."

Minister Chung was quoted as saying, "As the head of the ministry, I believe prosecutors have been doing their best, and I place my deep trust in them."

(Yonhap)