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[garykasparov]

1> http://www.koreaherald.com/
2> National
3> Prosecutors raid Samsung Securities headquarters



Prosecutors raid Samsung Securities headquarters

State prosecutors raided a Samsung Group securities brokerage yesterday in a search for evidence of slush funds it allegedly managed for the conglomerate.

"We searched Samsung Securities Co. as there was a concern that (Samsung) could destroy the evidence," senior prosecutor Kim Soo-nam told reporters yesterday.

"We have no plans as of yet to raid other Samsung subsidiaries."

Some 40 officers, including six prosecutors, reportedly collected papers and computer files from the company's key management offices, including the chief executive's office and the strategic planning epartment.

Prosecutors have also banned several suspects, including Samsung executives, from leaving the country. A local gallery chief who allegedly brokered artwork purchases for the wife of the Samsung chairman is reportedly among those on the travel ban list.

A former Samsung Group counsel recently claimed Hong Ra-hee, the wife of chairman Lee Kun-hee, and her relatives bought high-priced paintings using Samsung slush funds through Hong Song-won, director of Seomi Gallery. Both Samsung and the gallery chief deny the allegations. The prosecution is also tracking bank accounts after the whistleblower, Kim Yong-chul, raised allegations that the business giant hid funds in its executives' names, including his, without telling them.

The raid was not directly related to the "borrowed" accounts found in Kim's name, according to the prosecution, but is expected to lead to an examination of stock transaction records and accounts of other executives.

"The data we obtained today includes barely any accounting records," prosecutor Kim said.

As an independent counsel is to take over the case next month, the prosecution has said it would focus on the "necessary and urgent" parts of the investigation. Interrogation of key suspects is expected to be left for the independent prosecutors early next year, sources said.

President Roh Moo-hyun said on Tuesday he would accept the parliamentary bill to launch an independent investigation into Samsung's graft allegations, after threatening to veto it.

Roh will appoint a head counsel from among the three candidates nominated by the Korean Bar Association, after the bill passes the Dec. 4 Cabinet meeting. The actual investigation should begin in about three weeks, after the Dec. 19 presidential election, and last up to a maximum 105 days.

By Kim So-hyun

([email protected])

2007.12.01

[nautilus]

Maybe prospective samsung employees should have to provide notarised, apostilled copies of certificates of good character and qualifications. Possibly even a full medical and an oath to never visit a room salon....