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[Editorial] Flip-flopping auditor

BAI should be made independent of political power

By Yu Kun-ha

Published : July 15, 2013 - 19:37

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The Board of Audit and Inspection has made itself a target of audit and inspection by flip-flopping on the controversial four-rivers restoration project.

The state auditor has thus far inspected the signature public works project of former President Lee Myung-bak three times. But each time it offered a different assessment, confusing the public and undermining its own credibility.

The board announced the outcome of its first inspection in January 2011, more than two years before Lee’s five-year term expired. At the time, it said it could not find anything wrong with the 22.2-trillion-won scheme.

The second inspection was undertaken in 2012, with the outcome unveiled this January, one month before the end of Lee’s term. The BAI made a 180-degree turn, saying that the project was poorly planned and executed.

In the report, auditors claimed that due to shoddy planning, 11 of the 16 reservoirs had durability problems. They also asserted that the quality of water had become a serious problem as oxygen levels dropped in all 16 reservoirs.

Last week, the auditing agency wound up its third round of inspection, which it said was focused on bid-rigging among the construction companies that participated in the megaproject.

The BAI attributed collusion among the builders to a 4.4-trillion-won increase in project costs, which it said was the result of the Lee government’s secret plan to design the river project in a fashion that would make it possible to build a grand canal later.

On the campaign trail, Lee promised to build the Pan-Korea Grand Waterway by linking the four rivers. But he had to scrap the idea in the face of stiff opposition.

The BAI argued that it has confirmed through the latest round of inspection that Lee had kept the canal plan alive, which resulted in substantial cost escalation.

Lee’s former aides refuted the board’s findings, noting that the river refurbishment project and the grand canal plan were completely different. They lashed out at the board for jumping to the wrong, politically-motivated conclusion.

As controversy rages, lawmakers of the ruling Saenuri Party moved to look into the board’s latest claims to establish the truth. It is humiliting for the state auditor, but it has no one but itself to blame.

The board is supposed to act independently in overseeing the administration. But it is a tall order, given that it is established under the president. There is a strong case for making the board truly independent of political power. Lawmakers should devise an institutional arrangement to guarantee its independence.