A public official was caught for unfairly embezzling business funds by setting up a company related to his duties in his wife’s name.
According to the Anti-Corruption and Civil Rights Commission, Team Leader A, working for a cultural foundation under a local government in the metropolitan area, had been in charge of relocating and restoring excavated relics for over 20 years.
Director B of the Cultural Heritage Research Institute, who has a close relationship with Team Leader A, would receive contracts for relic relocation and restoration services from urban redevelopment project implementers whenever relics were found in redevelopment areas and subcontract these contracts to the cultural foundation where Team Leader A worked.
When relics were found at a redevelopment site in Seoul, Director B received a contract worth 200 million won for the relocation and restoration of relics in an 80㎡ area from the project implementer and subcontracted it to the cultural foundation where Team Leader A worked.
Later, as more relics were discovered at the same site, Director B received an additional contract worth about 4 billion won for a 3,000㎡ area and subcontracted it all to a company under the name of Team Leader A’s wife.
This subcontract agreement was made just 10 days after the company was established, and the company was unqualified as it was not registered as a cultural heritage excavation investigation agency.
Subsequently, Team Leader A’s wife’s company continued this collusion by receiving another subcontract for cultural relic relocation and restoration in the metropolitan area for 200 million won from the Cultural Heritage Research Institute.
To support his wife’s business, Team Leader A falsely applied for business trips to visit project areas multiple times and used the foundation’s budget for expenses such as heavy equipment rentals and material purchases.
The Anti-Corruption and Civil Rights Commission has referred the case to the supervising agency and the Supreme Prosecutors’ Office.