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Subsidy fraud recorded highest among corruption cases handled by ACRC

  • Date2014-05-12
  • Hit2,236

Government subsidy-related cases accounted for 45.9%, the highest ratio with 247 cases, out of a total of 538 corruption reports that the ACRC has referred to investigative agencies for the past 6 years. The number of subsidy fraud reports referred to investigative agencies was 66 in 2013 alone, a significant increase from 39 in 2011.



Corruption cases referred to investigative agencies (2008-2013)

Category

Total

Subsidy/

Support fund

Construction

Contract/

Supply

Approval/

Licensing

Budget/

Accounting

Inspection/

Investigation

Levy/

Refund

Others

No. of cases

538

247

93

91

43

20

13

7

24

 

Ratio

100.0%

45.9%

17.3%

16.9%

8.0%

3.7%

2.4%

1.3%

4.5%


Among the 247 corruption reports related to government subsidies, the investigations of 180 cases were concluded. Among them, strong suspicions of corruption were found from 147 cases (81.7%), resulting in 895 people indicted and 179 subject to disciplinary measures.

The amount of the proceeds of corruption totaled KRW 53.986 billion, among which about KRW 11.11 billion has been redeemed. Due to such redemption, a total of KRW 1.334 billion reward money was paid to corruption reporters.

The sector where most subsidy frauds occurred was the welfare and employment sector (69 cases), followed by R&D (48 cases). By type of subsidy-related corruption, “false claim” recorded the highest number with 120 cases (48.6%), followed by “misuse of subsidy” with 62 cases (26.3%).

The ACRC is planning to conduct a fact-finding investigation on leakage and embezzlement of various kinds of welfare subsidies. In addition, considering that reward money is paid after obtaining a conviction for corruption, the Commission is planning to provide award money for whistleblowers in advance.