Opposition party demands extension of probe into energy diplomacy

By Kim Hyo-jin

The opposition party is calling for an extension to an ongoing National Assembly probe into the “energy diplomacy” conducted during the previous Lee Myung-bak administration.

The request comes after the state audit agency confirmed that overseas resource development projects will likely incur losses of tens of billions of dollars.

“We cannot just take a backseat over the botched projects that caused huge losses of taxpayers’ money,” Rep. Ahn Gyu-baek, vice floor leader of the New Politics Alliance for Democracy (NPAD) said.

He urged the ruling Saenuri Party to agree to an extended probe into Lee’s energy initiatives.

“We can take a flexible approach to the much-debated witness list, so we expect the Saenuri Party to be actively engaged in the committee’s investigation.”

The remark came after the Board of Audit and Inspection of Korea (BAI) said Friday that 31.4 trillion won ($ 28.7 billion) was pumped into energy projects abroad since 2003. Of this, 27 trillion won was invested during the Lee administration.

It also reported that state-run companies engaged in the projects suffered net losses of 3.4 trillion won ($3.13 billion) and that 34 trillion won ($31.3 billion) is expected to be further invested.

The BAI began an inspection of the Korea National Oil Corp., Korea Gas, and Korea Resources Corp. on March 25, in order to identify potential irregularities in energy deals and whether there was misuse of state funds. It is scheduled to continue until June.

Following the BAI’s briefing, the NPAD intensified its call for the Saenuri Party to stop stalling the hearings and the committee’s investigation.

“When both the state audit agency and the prosecution point out the problems of energy diplomacy, the Saenuri Party’s attempt to stall the committee’s activity is a dereliction of duty,” NPAD spokesman Park Wan-ju said Friday.

The special investigative committee looking into the Lee Myung-bak administration's resource diplomacy reached an agreement earlier after four-days of hearings on March 31, April 1, 3, and 6.

But as the committee members have been locked in a dispute over who should testify, scheduled hearings have not taken place.

At the center of the dispute was if former President Lee Myung-bak should be called.

The Saenuri Party has long remained skeptical about the plan to hold hearings with former President Lee, describing it as a political offensive.

In response, the Saenuri Party claimed that NPAD Chairman Rep. Moon Jae-in also needs to testify, saying that Moon, as presidential chief-of-staff, was possibly involved in the resource diplomacy that was initiated by the Roh administration.

The NPAD’s Rep. Hong Young-pyo complained about the Saenuri Party’s stance, saying, “it seems to be determined to halt the probe.” He added that the NPAD will still push for the extension of the committee’s tenure.

The special committee’s remit expires on April 7, but has a possible 25-day extension.