New proof has emerged revealing the total extent of a South Korean civil servant’s scheme to embezzle $342,000 (497.16 million Korean gained) in public funds for private crypto investments, together with important flood restoration donations.
Final December, the unnamed civil servant—dubbed Individual A—was sentenced to 5 years in jail for embezzling metropolis finances and public group funds, with the case now below evaluation within the Excessive Court docket, the place the ruling could also be prolonged or overturned.
Whereas the official’s embezzlement actions occurred over six years, from November 2018 to Could 2023, the total scope of the crimes—together with the flood donation fund misappropriation—was solely revealed within the Board of Audit and Inspection’s (BAI) audit report launched on Tuesday.
South Korea has been battling transparency points in public workplace, as evidenced by the latest case of former Democratic Social gathering member Kim Nam-guk, who was cleared of fees after being accused of shifting crypto earnings off the books.
The Cheongju official used cast paperwork and unauthorized use of the mayor’s seal to open a checking account within the metropolis corridor’s identify, via which he intercepted funds, in accordance with a Yonhap Information report.
The stolen cash was then funneled into investments in crypto and used to repay private money owed, seemingly accrued from poor funding selections.
This included important parts of cash from flood restoration donations, which had been desperately wanted after North Chungcheong Province suffered extreme flooding in July 2023.
Cheongju is the capital and largest metropolis of North Chungcheong.
As of July 18, 2023, the Board of Audit and Inspection (BAI) reported 49 deaths nationwide within the catastrophic flood, with North Chungcheong Province struggling the very best toll of 19 fatalities.
The BAI investigation revealed the official had entry not solely to a number of Cheongju Metropolis Corridor seals but additionally to seals from third-party enterprise operators.
That enabled him to bypass the right channels and embezzle funds on a number of events, per the report.
The BAI’s report identified he was in a position to falsify venture bills and approve digital transactions with out correct oversight from his superiors, who did not confirm the legitimacy of those requests.
The mayor’s seal was typically left unattended, with out correct safety measures in place, and the official’s direct superiors did not correctly handle accounting procedures and confirm spending, per BAI.
On account of the investigation, Cheongju Metropolis Corridor was instructed to dismiss the official from his put up and take disciplinary motion towards different officers concerned.
Edited by Sebastian Sinclair
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