ACRC Coordinated with Local Administrative Offices to Prevent ‘Leakage and Waste of Government Subsidies’

- ACRC discussed measures to improve integrity in public office and enhance strategies for fraudulent claims for public funds -

- ACRC held workshops for officials charged with matters related to audit and subsidies in local governments -

(24, Nov. 2023, ACRC)

In order to prevent the misappropriation of public funds, such as subsidies, through false or illegitimate means, front-line administrative agencies have come together to share information and communicate.

On November 24, the Anti-Corruption and Civil Rights Commission (ACRC, Chairperson Kim Hong-IL) held regional workshops at the Korea Railroad Corporation in Daejeon for around 300 officials, including audit managers and staff from 86* local governments and education offices in Chungcheong and Honam regions.

*Metropolitan and local governments, and education offices in Chungcheongnam-do, Chungcheongbuk-do, Jeollanam-do, and Jeollabuk-do

In this workshop, the ACRC thoroughly discussed measures to strengthen the management of the operation of the public fiscal recovery system, prevent the recurrence of illegitimate claims in vulnerable areas, and promote inter-agency collaboration to enhance protection and compensation for whistleblowers.

The ACRC Chairperson Kim Hong-IL participated in the workshop and conducted a lecture on "Integrity Mindset and Practices for Public Officials."

Earlier this year, the ACRC held workshops in the metropolitan area (April), Gangwon region (June), and Yeongnam region (July).

The Act on Prohibition of False Claims for Public Funds and Recovery of Illicit Profits was enacted and implemented in January 2020 to prohibit false claims, etc. for public funds and establish a system for the recovery and management of profits earned through such false claims, etc.

In cases of illegitimate receipt of government subsidies and grants, not only is recovery enforced, but the ACRC also imposes additional monetary sanctions up to five times the amount of the illegitimate gains.

The ACRC has regularly examined the compliance status of various agencies’ measures against false claims for public funds, encouraging efforts to recover illicit profits at all levels.

Additionally, the ACRC has continuously worked to prevent public finance leakage and enhance fiscal integrity by conducting joint inspections with relevant agencies, especially in vulnerable and high-incidence areas of illegitimate claims.

* The amount of illicit profits recovered and additional monetary sanctions imposed by various agencies: 45.7 billion won (2020) à 105.6 billion won (2021) à 133.6 billion won (2022)

** Recommendation for the recovery of illicit profits and imposition of additional monetary sanctions after the intensive inspection conducted by the ACRC: 400 million won (2020) à 300 million won (2021) à 3.1 billion won (2022) à 10.1 billion won (2023)

ACRC Chairperson Kim Hong-IL stated, “The ACRC will continue to actively collaborate with public agencies of various levels to ensure that public finances are not wasted or used improperly,” adding that “we will further strengthen the operation of the public fiscal recovery system and actively support efforts to enhance fiscal soundness across the government.”