Former Korea Water Resources Corporation Standing Auditor Kang Rae-gu (58), the key suspect in the Democratic Party's 'money envelope' scandal, has been indicted. The prosecution stated that the entire 60 million won delivered to independent lawmaker Yoon Kwan-seok, purportedly for distribution to incumbent lawmakers, is believed to have been fully passed on to the lawmakers.
The Anti-Corruption Investigation Division 2 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kim Young-chul) formally indicted Kang on the 26th on charges of violating the Political Parties Act, the Political Funds Act, and bribery.
Kang Raegu, former Standing Auditor of Korea Water Resources Corporation. [Image source=Yonhap News]
This is the first time since the prosecution launched a large-scale raid on the 12th of last month and officially began investigating the allegations that related individuals have been indicted.
According to the prosecution, Kang is accused of conspiring with former Democratic Party leader Song Young-gil, independent lawmakers Yoon Kwan-seok and Lee Sung-man, among others, from March to May 2021, to distribute a total of 94 million won within the party to ensure Song's victory in the party convention.
Distributed in Three Channels: Lawmakers, Regional Headquarters Chiefs, and Regional Situation Room Chiefs... 20 Envelopes Delivered to Lawmakers
The prosecution has determined that the money envelopes were distributed through three channels: incumbent lawmakers, regional headquarters chiefs, and regional situation room chiefs.
Kang is accused of conspiring with primary election camp officials in April 2021 to receive 50 million won from a 'sponsor' businessman named Kim, purportedly for primary camp expenses, and then delivering 60 million won to lawmaker Yoon in two installments at the end of the same month, under Yoon's instructions, inducements, or demands, to be provided to incumbent lawmakers.
Regarding this, a prosecution official said, "There were 20 envelopes delivered to lawmaker Yoon, and we believe all 20 were passed on to the incumbent lawmakers. We need to conduct further investigations to determine exactly what happened."
However, when asked whether the lawmakers who received the money were identified in Kang's indictment, the official said, "That part was not included in today's indictment, so it can be considered that the recipients have not been specified."
The official also distanced themselves from the individuals listed in the recently publicized 'Lee Jung-geun Note,' stating, "We are not confirming those."
Kang is also accused of instructing and encouraging primary election camp officials in March 2021 to provide election campaign activity funds to regional headquarters chiefs, resulting in 28 envelopes each containing 500,000 won being distributed to regional headquarters chiefs around March to April of the same year. Of the funds used here, 10 million won was investigated to have been received from independent lawmaker Lee Sung-man.
Additionally, he is accused of instructing and encouraging primary election camp officials at the end of April 2021 to provide election campaign activity funds to regional situation room chiefs, resulting in 40 envelopes each containing 500,000 won, totaling 20 million won, being distributed around April to May of the same year.
The prosecution applied charges of violating the Political Funds Act to the 60 million won, for which the sources were identified as lawmaker Lee and businessman Kim.
Regarding the allegations that Kang directly provided money envelopes to regional headquarters chiefs and regional situation room chiefs, the prosecution decided not to include these in the current indictment, citing the need for further investigation into the recipients.
A prosecution official said, "Although a significant portion of the investigation into the provision of money to regional headquarters chiefs and situation room chiefs has been conducted, some parts remain to be investigated, so these were not included in this indictment."
Furthermore, Kang is also accused of accepting 3 million won in bribes in September 2020 from businessman Park, in exchange for facilitating delivery contracts for equipment at power plants under the Water Resources Corporation.
Intervened in Primary Election as 'Behind-the-Scenes' While Serving as Auditor... Did Not Name Former Leader Song Young-gil as Co-conspirator
The prosecution believes that since Kang was a standing auditor at a public institution, making official camp activities difficult, he worked behind the scenes with camp officials on primary election matters.
The investigation revealed that lawmaker Yoon oversaw incumbent lawmakers, while Kang and former Democratic Party Deputy Secretary-General Lee Jung-geun respectively managed regional committee heads and regional situation room chiefs within the camp's organizational headquarters.
A prosecution official said, "Kang expressed his opinions on meetings and election campaign preparation materials within the camp, and activities were carried out based on those opinions."
When asked how they evaluate Kang's involvement in the party election while serving as a public institution auditor, the official responded, "An auditor is supposed to neutrally and strictly supervise and manage the misconduct of the institution's directors, yet Kang intervened in party affairs through unofficial channels and even participated in vote-buying during the party leader primary election. This raises concerns about how the public views the role of public institution auditors, and we consider this a serious matter."
The prosecution stated that Kang's indictment, which spans about 20 pages, does not directly name former leader Song Young-gil as a co-conspirator in the money envelope distribution. However, it does include instructions and reporting relationships concerning the primary election camp within the necessary scope.
Regarding former leader Song's recent filing of a complaint against the investigation team prosecutor over the leak of Lee Jung-geun's audio recordings, a prosecution official said, "The audio recordings were never provided externally during the investigation. We have repeatedly stated this, and it is regrettable that the complaint seems to be an attempt to discredit the investigation team by falsely accusing us of leaking the recordings."
Ministry of Justice Submits Arrest Consent Requests for Yoon Kwan-seok and Lee Sung-man... To Be Reported at the Plenary Session on the 30th
Meanwhile, on the same day, the Ministry of Justice submitted requests for arrest consent to the National Assembly for independent lawmakers Yoon Kwan-seok and Lee Sung-man, other key suspects in the allegations, following a judge's request from the Seoul Central District Court and after receiving approval from President Yoon Suk-yeol.
A prosecution official said, "In a democratic country, political parties act as intermediaries representing the people in politics, and our Constitution explicitly states in Article 8, Paragraph 2, that 'Political parties shall have democratic purposes, organizations, and activities.'"
He added, "The distribution of money in party elections distorts voters' intentions in elections that should be the most democratic, undermines the essence of the electoral system, and ultimately threatens the foundation of our Constitution. The investigation team will make every effort to ensure thorough investigation and prosecution."
The arrest consent requests for the two lawmakers are expected to be reported at the plenary session scheduled for the 30th and then voted on at the first plenary session of the June extraordinary session of the National Assembly.
In political circles, there is speculation that a significant number of defections may occur during the vote on the arrest consent requests for the two lawmakers within the Democratic Party, which previously faced fierce criticism as a 'shielding National Assembly' after consecutively rejecting arrest consent requests for its own members, lawmaker Roh Woong-rae and leader Lee Jae-myung.
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