Seoul City to Fully Implement Han River Bus Audit Recommendations... Preferential Treatment Allegations Resolved

"We Will Execute and Disclose Transparently in Accordance With the Law"

City Maintains "Reasonable to Exclude From Local Finance Act"

No Preferential Treatment Found in Operator Selection

The Seoul Metropolitan Government announced on March 16 that it would promptly and thoroughly implement the administrative improvements pointed out during the audit of the Han River bus project.

According to the city government, the results of the Han River bus audit conducted by the Board of Audit and Inspection at the request of the National Assembly’s Public Administration and Security Committee were officially communicated as a "caution and notification."

Han River bus stock photo. Photo by Yonhap News

Park Jinyoung, Head of the Future Han River Headquarters at the Seoul Metropolitan Government, stated, "We will promptly and faithfully implement the administrative improvements identified in the audit results," adding, "We will carry out every process in accordance with laws and standards, and disclose information transparently to earn the trust of citizens."

This audit was conducted to review the factual background and procedural validity of the entire Han River bus project, focusing on three main issues: the appropriateness of calculating total project costs and cost-benefit analysis, allegations of preferential treatment regarding the shipbuilding contract, and the failure to meet the required vessel speed.

First, regarding whether shipbuilding costs were included in the calculation of the total project cost and economic feasibility analysis, the city explained that since there was no precedent for a privately led inland water public transportation project, it applied the guidelines for railroads and airports and excluded the cost of vessel purchases.

The Seoul Metropolitan Government stated, "It is reasonable to exclude ferry operation projects, which are independently operated by the private sector, from the scope of the Local Finance Act," and explained, "For airport construction projects, the cost of purchasing aircraft is excluded from the calculation of total project costs and economic feasibility analysis in accordance with relevant guidelines."

However, the Board of Audit and Inspection determined that under the Local Finance Act and related regulations, shipbuilding costs should be included, and issued a "caution" requiring the city to thoroughly handle relevant work in future projects. A caution is a measure to call attention to prevent recurrence, issued when the severity of an audit finding does not warrant disciplinary action.

In the process of selecting the builder for the second phase of vessel construction, the appropriateness of the bidding and evaluation procedures was recognized, and it was confirmed that there were no illegal or improper acts.

Additionally, regarding concerns over unfairness in selecting the operator for the Yeouido dock construction project, it was confirmed that there were no illegal or improper acts, such as providing preferential treatment to the operator. It was also found that there were no issues with the management and supervision of the project implementer.

Regarding the failure to meet vessel speed requirements, the city explained that it was difficult to confirm the exact vessel speed at the early stage of the project and that it could only be verified after the vessels were delivered in February last year.

The Board of Audit and Inspection issued a "notification," instructing the city to set realistic vessel speeds and adjust required travel times and timetables accordingly when establishing future waterborne public transportation services. A notification is a measure that allows the audited institution to handle issues autonomously, emphasizing greater discretion compared to a recommendation.

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