Prosecutors raid POSCO E&C over alleged slush funds accumulated by exaggerating the amount the South Korean company needed to pay local subcontractors in Vietnam

http://www.koreatimes.co.kr/www/news/biz/2015/03/123_175158.html

Updated : 2015-03-13 12:18

Prosecutors raid POSCO E&C over alleged slush funds

Prosecutors raided the office of POSCO Engineering & Construction Co. on Friday in connection with allegations of slush funds created by its executives and employees.
Late last month, the construction arm of South Korea’s top steelmaker POSCO said two executives and about 10 employees in charge of construction projects in Vietnam were reprimanded in July for operating illegal slush funds worth about 10 billion won (US$8.9 million).
The money, which had been accumulated by exaggerating the amount the South Korean company needed to pay local subcontractors in Vietnam, was later given out as monthly rebates to contractors from 2009 to 2012, it said.
During a parliamentary interpellation session on Feb. 26, Prime Minister Lee Wan-koo ordered a thorough investigation into the case. (Yonhap)

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