Embezzlement of Donations and Public Funds
45 Cases Over Six Years
An official at the 6th grade level in Cheongju, Chungcheongbuk-do, was found to have embezzled over 490 million won in public funds over six years, according to audit results. The employee forged official documents, unauthorizedly stamped the Cheongju mayor's seal, opened a bank account in the name of the city hall, and even embezzled flood recovery donations.
On the 11th, the Board of Audit and Inspection disclosed the results of the "Public Finance Fraudulent Expenditure Inspection" and stated that disciplinary action (dismissal) was requested for those involved who embezzled donation funds, public organization funds, expenditure budget project costs, and local subsidies a total of 45 times over six years.
A project manager A, holding a 6th grade position in Cheongju City, embezzled a total of 497.16 million won from November 2018 to May last year and used it for personal purposes such as virtual currency investment.
A used methods such as falsely submitting expenditure proposals for project costs like employment and industrial accident insurance premiums in the local finance management system (e-Hojo) and secretly processing electronic approvals on behalf of superiors to embezzle project funds under their responsibility.
Additionally, A misappropriated funds of public organizations and local subsidies by stealing bank accounts and transaction seals in the names of Cheongju City Hall and subsidy project operators that they kept.
The Board of Audit and Inspection explained that the reason large-scale embezzlement was possible over a long period was not only due to negligence in the storage and stamping duties of the Cheongju mayor's seal but also due to lax accounting and security management, and overall poor internal control tasks such as account inspections and self-audits.
According to the Board of Audit and Inspection, B, the manager of the Cheongju mayor's seal, not only left the seal unattended without safety measures but also allowed A to stamp withdrawal slips even though A did not follow proper procedures. A’s immediate superiors were also found to have neglected related duties by approving A’s false expenditure proposals without verifying legitimate creditors or sharing department staff and PC passwords.
The Board of Audit and Inspection stated, "Disciplinary actions and warnings were issued to five related personnel who neglected management and supervision duties, and they were urged to thoroughly carry out internal control tasks such as account inspections and self-audits in the future."
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