Prosecutors Summon DSME CFO
By Aiswarya Lakshmi
Friday, August 5, 2016
The Seoul Central District Prosecutors’ Office summoned the chief financial officer (CFO) of Daewoo Shipbuilding & Marine Engineering Co. (DSME ) today (Friday) over his alleged involvement in the financially troubled company’s accounting fraud.
As per a report in Korea Herald, the Seoul prosecutors called Kim Youl-jung, 58, for questioning on allegations that he cooked the books to cover up the company's operating losses.
The special investigation team said Kim is being grilled over accusations that the shipbuilder underreported some 120 billion won ($107 million) in business losses last year.
The shipbuilder underreported some 120 billion won (US$107 million) in business losses last year, despite the current management board's pledge to break away from the past and to run the company transparently.
About a week ago, the prosecution indicted former head of the company Ko Jae-ho on charges of overreporting some 5.7 trillion won in net assets between 2012 and 2014. Ko headed the company from 2012 to 2015.
Ko's predecessor Nam Sang-tae was also indicted in the same month on bribery charges. The shipyard said it had much larger losses in 2013 and 2014 than earlier reported profits, citing accounting mishaps.
The Board of Audit and Inspection, the country's state audit agency, has said the shipyard is suspected of rigging its books to hide up to 1.5 trillion won in losses during the cited period.