Unqualified Construction, Name Lending, Illegal Subcontracting... Seoul City Files Complaints and Requests Investigation Against Solar Power Cooperatives

11 Companies Committing Illegal Acts Such as Unqualified Installation and Illegal Subcontracting of Solar Power Facilities
14 Companies Intentionally Closing to Avoid Post-Management of Veranda-Type Solar Power Facilities
7 Companies Receiving Subsidies by Fraudulent Methods Including Citizen Co-Payment Payment and Receipt Forgery

[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government Audit Committee, which is conducting an audit to verify the facts and clarify responsibility regarding the veranda-type solar power distribution project, announced on the 3rd that it has identified 14 cooperatives and other entities suspected of deliberately closing their businesses without complying with the obligation of free post-management, and reported them to the Climate and Environment Headquarters.

Following the notification from the Audit Committee, the Climate and Environment Headquarters filed charges on September 3rd against the 14 closed companies for fraud and obstruction of official duties by deception based on the audit results. The Audit Committee explained, "Based on a preliminary audit, we initiated this main audit focusing on system improvement rather than the faults of the staff," adding, "We thoroughly examined not only the legality of the project but also the efficient budget execution and fair procedures."

Earlier, on October 15th, Seoul also filed charges regarding illegal subcontracting by 11 veranda-type solar power distribution companies, including solar cooperatives, uncovered during the audit. This action followed the Board of Audit and Inspection’s September 2019 audit of Seoul’s veranda-type solar power distribution project, which pointed out illegal subcontracting, name lending, and unqualified construction by five distribution companies. Despite this, suspicious cases of unqualified construction, name lending, or illegal subcontracting were confirmed in the veranda-type solar power facilities installed by 11 companies.

Additionally, during this audit period, the Climate and Environment Headquarters initiated an internal investigation following complaints from general citizens in autonomous districts that companies were paying citizens’ self-payments on their behalf. The investigation confirmed this to be true, leading to seven companies being referred for investigation on October 15th. These companies reportedly judged that even if they paid citizens’ self-payments, it was advantageous to receive more installation subsidies from Seoul City.

Kim Hyung-rae, the investigation officer, stated, "To uphold citizens’ right to know, we will promptly conclude this main audit and disclose the results. In particular, through these charges and referrals for investigation, we will strictly hold some cooperatives and distribution companies that have illegally embezzled subsidies accountable and order the Climate and Environment Headquarters to prepare measures to prevent recurrence."

This content was produced with the assistance of AI translation services.