Audit shows nonprofit organizations embezzled 1.8 bln won in state subsidies

SEOUL, The state audit agency announced Tuesday that 10 nonprofit organizations participating in government businesses embezzled state subsidies totaling more than 1.8 billion won (US$1.3 million) through various illegal methods.

The Board of Audit and Inspection (BAI) revealed the results of its investigation into approximately 900 organizations. It has formally requested that the prosecution investigate 73 individuals on charges of fraud, embezzlement and other offenses.

The BAI's findings indicated that the 10 organizations systematically committed crimes in 46 instances, such as fabricating expenses and creating false contracts.

One particularly noteworthy case involved the chairman of a civic organization dedicated to supporting victims of wartime sex slavery, whose identity has been withheld, the BAI said.

The investigation revealed that despite receiving state subsidies for a project, the chairman worked less than the contracted 100 days but was still compensated.

"We aim to hold those engaged in misconduct accountable and raise awareness against perceiving government subsidies as public funds," the BAI said.

The state auditor further reported that it has instructed relevant government agencies, including the culture ministry and the gender ministry, to revoke state subsidies.

Source: Yonhap News Agency

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