Dismiss Notice
You are browsing this site as a guest. It takes 2 minutes to CREATE AN ACCOUNT and less than 1 minute to LOGIN

Samsung Boss Indicted

Discussion in 'Jukwaa la Siasa' started by Ibambasi, Apr 17, 2008.

  1. Ibambasi

    Ibambasi JF-Expert Member

    Apr 17, 2008
    Joined: Jul 25, 2007
    Messages: 2,816
    Likes Received: 472
    Trophy Points: 180
    Huku ni kwa wenzetu ambao wanajua nini maana ya utawala wa sheria.Huyu anamfuata yule boss wa DAEWOO GROUP aliyefungwa kwa mambo kama haya.FMES alipost hapa juzi ile thread ya yule mkubwa wa chama tawala China.Je Kikwete na CCM yake wanaweza haya?

    SEOUL, South Korea (AP) -- Special prosecutors said Thursday they indicted Samsung Group Chairman Lee Kun-hee on charges of tax evasion and breach of trust, though cleared the conglomerate of allegations it kept a slush fund used for bribery.

    Lee Kun-hee has led Samsung Group for 20 years.

    1 of 2 The announcement concludes a three-month probe into a slew of alleged wrongdoing at South Korea's biggest industrial conglomerate. Lee and close family members have been summoned for hours of questioning during the investigation.

    The prosecutors said in a statement that they would not arrest Lee as it would "cause enormous disruptions" in Samsung corporate management. The "negative repercussions on our economy would be very big amid the extremely competitive global economic situation," they said.

    The investigation began in January and was spurred by accusations made late last year by former top Samsung attorney Kim Yong-chul. The conglomerate has denied the allegations, including claims that it bribed prosecutors and other officials.

    Cho Joon-woong, who led the investigation, told reporters that prosecutors found "no trace" of systemic bribery.

    The probe has also examined long-simmering allegations by civic groups that South Korea's biggest family-run conglomerate has used dubious financial transactions to ensure corporate control passes from Samsung Chairman Lee to his son.

    The investigation essentially agreed with that view.

    Don't Miss
    Samsung boss 'will think about' quitting
    Samsung chief denies corruption allegations
    "Samsung Group has a lot of structural problems, such as illicit transfer of management control," the prosecutors' statement said.

    "It is the hope of our investigation team that this probe would serve as an opportunity for Samsung to shed these problems and be reborn as an undisputed ultra first-class global company."

    The conglomerate vowed to act on that advice.

    "Samsung is preparing reform plans, based on advice from various sectors of our society," Lee Soon-dong, president of Samsung's strategic planning office, said in a statement. He also said Samsung "would like to apologize for causing concerns."

    Prosecutors said that they found 4.5 trillion won ($4.5 billion; 2.9 billion euros) of Chairman Lee's personal assets in bank accounts under borrowed names and that he evaded taxes worth 112.8 billion won ($114 million; 71 million euros).

    If found guilty, Lee could face a sentence of between five years to life in prison, though judges also have leeway to issue a sentence in which no jail time would be done.

    Prosecutors said the breach of trust charge resulted from Lee having been briefed by aides about dubious financial transactions, including the sale of bonds convertible to shares to Lee's children. He was also charged with violating the nation's stock exchange law.

    Samsung Vice Chairman Lee Hak-soo, regarded as Lee's closest confidante, and two other executives were also indicted on breach of trust charges. In total, 10 Samsung executives were charged.

    The 66-year-old Lee, one of South Korea's richest people and its most influential business executive, was called in twice by investigators for questioning about the allegations.

    After the second round last Friday, Lee said that he assumed responsibility for the scandal, adding that he would consider a major revamp at Samsung and hinted at even possibly stepping down as chairman.

    Investors have largely shrugged off the allegations and ensuing investigation. Shares in Samsung Electronics, for example, have jumped 25 percent since Kim, the former Samsung lawyer, came forward in early November.

    They rose 1.5 percent Thursday to close at 661,000 won ($666; 418 euros).

    The scandal, however, has struck a nerve in broader society, where pride in the conglomerate's success as South Korea's top business group meets concerns that it has too much power and influence.

    Founded 70 years ago, the nearly 60-company strong conglomerate also has interests in shipbuilding, insurance, apparel and other industries. By some estimates, group companies account for as much as one-fifth of South Korea's total exports

  2. Steve Dii

    Steve Dii JF-Expert Member

    Apr 17, 2008
    Joined: Jun 25, 2007
    Messages: 6,412
    Likes Received: 25
    Trophy Points: 145
    unakumbuka mahojiano ya Muungwana na VoA (sijui Financial Times) mwaka jana?... alitamka mwenyewe, pamoja na utajiri wa maliasili tulionao haelewi kwanini Tanzania yetu bado ni maskini...... to me that is a very big statement to describe a president!!!
  3. Ibambasi

    Ibambasi JF-Expert Member

    Apr 17, 2008
    Joined: Jul 25, 2007
    Messages: 2,816
    Likes Received: 472
    Trophy Points: 180

    Ni lzaima asielewe,kwani kama vile rafiki zake walivyo jilimbikizia mali na pato lote la nchi hii na yeye kushindwa japo kuwaambia tu walipie kodi...ahhhh I lack words