Board of Audit and Inspection Finds Violations in Presidential Office Relocation

The Board of Audit and Inspection has concluded its investigation into the relocation of the presidential office and official residence, finding violations of laws and regulations during the process.

The audit, which began in December 2022, revealed that the Office of the President failed to follow due process when selecting a company to undertake remodeling work and signing a contract. The Government Contracts Act and other related laws stipulate procedures and formats that government agencies must follow when entering into contracts with private companies, but the Office of the President ignored these regulations.

Additionally, the Board of Audit and Inspection discovered circumstances in which there was an attempt to exert undue influence during the company selection process. Furthermore, unqualified companies were found among the subcontractors of companies that won contracts from the Office of the President.

A senior official of the Security Service was also found to be in collusion with a construction company, leading the Board of Audit and Inspection to request the prosecution to investigate this executive.

The audit was initiated in response to a request from People’s Solidarity for Participatory Democracy, which raised suspicions of financial waste, abuse of power by government officials, and preferential treatment for certain companies due to the relocation of the presidential office in October 2022.

While the Board of Audit and Inspection identified violations of the State Contracts Act and other issues, it determined that these issues did not result in security vulnerabilities in national facilities or safety.

The Office of the President also denied allegations that it had underestimated previous costs and illegally compiled and executed the budget.

The Board of Audit and Inspection plans to notify the Office of the President of the results of its audit, which will include a reminder to follow the procedures stipulated in the law when entering into future construction contracts. The audit report will also be made public.

Opposition party members of the National Assembly Land, Infrastructure and Transport Committee are continuing to scrutinize the relocation process, having unilaterally passed the Ministry of Land, Infrastructure and Transport’s budget settlement plan, which includes a provision to check for “illegality” in the process of expanding and remodeling the presidential residence in Hannam-dong.