Former Solar Power Project Operator CEO and Resident Representative Embezzle Approximately 4.2 Billion Won in Project Funds
A group involved in inflating project costs to embezzle funds related to the solar power generation project in the Gunsan area (total project cost 57.2 billion KRW, 30 MW) was mass arrested by the Coast Guard.
The West Sea Regional Coast Guard Headquarters' Metropolitan Investigation Unit announced on the 22nd that they arrested Mr. A, a resident representative in his 50s, on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust in business) and fraud, and that 12 others, including Mr. B, the former CEO of the power generation fund project who illegally used about 2.3 billion KRW of the fund, subcontractors, and supervisors, were booked without detention.
According to the police investigation, resident representative Mr. A is accused of forging application forms and embezzling compensation payments by asking village residents to lend their names so that they could receive village compensation payments from December 2020 to March 2021, and also using the residents' participation dividends to repay personal debts.
Additionally, Mr. B, the former CEO of the solar power generation project, is accused of embezzling compensation payments through acquaintances and fraudulently establishing a residents' cooperative to inflate construction progress payments and provide collateral.
The investigation revealed that resident representative Mr. A and former CEO Mr. B established a nominal residents' cooperative to receive power funds from the Ministry of Trade, Industry and Energy, selected compensation payment recipients, and inflated construction costs by excessively accounting for materials through subcontracting major processes of the solar power generation project.
Kim In-chang, Chief of the West Sea Regional Coast Guard Headquarters, stated, “We will continue to actively respond to organized crimes that infringe on the stability of citizens' lives by ensuring strict and accurate legal judgment against intelligent crimes that cunningly exploit the law.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
