Jengsu Scandal

The 2012 Jengsu Political Scandal was a major political and economic scandal in Hwangchu involving the Lord Gwak Il of Jiwae, a member of the House of Lords, a number of notable Deputies and local officials and MTPO. MTPO had sporadic discussions with Hwangchu officials for years over the construction of a massive LNG terminal. Finally in 2009 they received the credit needed, along with cooperation from a major energy company - Baesang Energy Combine. MTPO set up a shell company known as Jengsu Development Ltd., slowing buying out much of the town's real estate and politics. Several whistleblowers were murdered after leaking the environmental risks of the project along with the company's shady business dealings. Afterwards a psychiatry center was set up with an underground brothel in the basement. This center - known as the Jengsu Center for Mental Rehabilitation would cause the forced disappearances of many numerous activists and community leaders. Lord Gwak Il and the Energy Minister at the time prevented any investigation into what was occurring.

Widespread coverage of this scandal occurred in early June 2012 when an Osorrai blogger under the pseudonym CondorFire brought the real story of the murders, brothels, and the shady corporate network formed around the project to the public. As a result of this scandal, the Lord Gwak Il was placed under heavy scrutiny with an investigation starting on 8th October. The Lord Gwak Il eventually had his peerage revoked by an act of parliament, the previous Prime Minister Seonu Chung-Ae, came under heavy scrutiny for her failure to moderate the corruption during her government which would eventually lead to her later arrest after the discovery of further corruption scandals relating to the Daewhan Corporation and their corruption in obtaining military contracts. The new government set up a special prosecution team led by Yeo Myung-Dae which began investigating into the incident in August 2012 which would eventually lead to the arrest of 6 Deputies and a number of local officials, the raiding of the terminal by as well as the nationalisation of the liquified natural gas industry for 5 years. In response Osorra shuddered sales of parts and machinery for the terminal, and barred technicians from maintaining it. Lord Gwak Il was given asylum as a "victim of Communism",

Background

Gwak Il

The Lord Gwak Il of Jiwae was a member of the House of Lords. He had previously been a Deputy since the beginning of the government in 1984, Gwak Il had served as a Captain in the Hwangji Marine Division and was personal friends with Prime Minister Tan Il-Shik and had previously served in his Division staff. Gwak Il had been elected to Parliament having left the military to pursue a political career as a member of Tan's Iron Front party. He became the elected Deputy of Ohyan and served in Tan's government as first Minister of Defence against Selengeria in which he organised the expenditure and the government oversight for Military deployments against Selengeria. He was re-elected 3 times, becoming the Minister of Defence in 1998 following the exit of Jwa Whan in which he oversaw the the large expansion of the Navy during the late 90s and early 2000s. Notably, he was also the Defence minister incumbent during the Daeiksu incident. He left as the longest serving Minister of Defence, having served in the position for 6 years.

He later became a peer, becoming the Lord Gwak Il of Jiwae in 2008 after serving in parliament for 24 years. However, Gwak Il also became a controversial figure in 2006 when reports surfaced that he had a hand in the contract for the Ohsan-Class Air Defence Frigate being given to Daewhan Heavy Industries. Gwak Il had been implicated to recieved bribes in order to influence the selection committee to select the Daewhan vessel for the replacement of the Puljang-Class Frigates which would lead to the Ohsan-Class Air Defence Frigate. Gwak Il was also alledged to have been involved in a number of sexual scandals including having reportingly number of affairs with his secretaries, maids and even the (at the time) Crown Princess within his home without the knowledge of his wife prior to her death in 2009, many also speculated he had either orchestrated her death due to the seemingly lack of care he showed to her upon her death. Gwak Il had also been indicted on fraud charges for missing funds during his time as Minister of Defence as well as breaking censorship laws by bribing papers to paint him in a favourable picture. Notably, in 2006, there was a report that he was heavily involved in the underground Hwangji gambling scene and had racked up severe debts as a result of gambling.

Development of the Jengsu LNG Terminal

In early 2003, OITM came into initial discussions with the Jengsu District Authority over the purchase of vacant land located on the coast in order to set up a vast liquidifed natural gas terminal in order to break into the relatively undeveloped and unknown market. The corporation paid x Seongchal in order to lease a 2 kilometre square piece of land for a period of 70 years in order to set up a liquidified natural gas terminal, nearby residents who protested the construction of the facility due to fears over their effect on the climate were ignored with the residents being paid to move out in order to make way for the housing of workers. The network for the transportation of the gas as well as local infrastructure support was provided by the 4th largest energy company in Hwangchu at that time, Baesang Energy Combine, who worked together with OITM in order to create a transportation network for the sale and distribution of LNG around the country.

Construction for the Jengsu LNG Terminal began in June 2004, contract for the facility was given for 34 million Seongchal to Palheung Construction Limited. The construction for the facility was finished in August 2008. Whilst construction was done by a domestic company, many of the other components were produced overseas due to the relative lack of experience in the country. 10 of the storage tanks were produced in Ringerike and assembled in Kodeshia before being shipped to Hwangchu whilst many of the advanced components were produced in Osorra and imported to Hwangchu.

Certification for the facility was conducted by the Ministry of Energy, however it was evident in initial reports that the facility was of poor build with multiple structural faults found by investigators as well as a lack of safety equipment or areas in case of an industrial accident. However, these reports were suppressed when the team responsible for the certification of the facility were pressured by Osorran Mafia members through a mixture of blackmail and threats. The work done by the Osorran Mafia on behalf of OITM in order to gain certification would later lead to the denial of entry for any Osorrans related to organised crime groups. Certification for LNG operations was officially granted in January 2009 with operations beginning the following month, the first gas tanker arriving at the facility on the 17th February.

Censorship and the expansion of OITM in Hwangchu

Initial campaigns against LNG was mostly limited to local environmentalists in the region, Jengsu had traditionally been considered "the green city" with low pollution and a great focus on public transport and bicycles over the ownership of cars. Construction of the terminal had been delayed slightly in March 2006 when a protest number 5,000 had blocked the road for vehicles carrying construction equipment to the site. This delayed construction for 3 days when the legal protest period expired and the police was ordered to arrive and send off the protestors. This protest, lead by Pak Do-Ik and Ryeo Young-Mi, would have large ramifications for OITM who began a secret campaign to suppress media coverage on the site and opposition to it's construction.

Part of OITM's plans for Hwangchu included a vast investment in the city of Jengsu and it's local facilities. This rapid investment would see the local football and rugby clubs, Jengsu FC and Jengsu Jokers, bought out by OITM in 2005 and the investment into local sporting and recreational facilities. Redevelopment of run down areas of Jengsu, primarily the Ilju area, was financed by OITM who began construction of new housing estates in areas previously neglected due to lack of funding. Many businesses in the region were also purchased including local supermarket brands and a multitude of food businesses. This investment, estimated around x Seongchal represented a sizeable investment by a foreign company and attracted attention from the Ministry of Finance. Amongst the investments also was a small psychiatry facility located 20 miles outside of Jengsu itself. Construction for the facility would begin in mid 2005 and be completed in 2009, the facility would also house an underground brothel facility as well as a variety of leisure centres for OITM Executives. The psychiatry facility would be primarily used as a place to imprison local activists and opponents towards the expansion of OITM business in the Jengsu District.

OITM, however, did not limit it's operations to the legal side with cooperation between OITM, the Osorran Mafia and local Chaemils to facilitate a local dominance in the district's politics. Part of this was the bribery of Lord Gwak Il along with District Deputy Nam Hana and various other local officials. Lord Gwak Il's influence in the local politics of Jengsu is thought to be the primary reason to the lack of investigation within the region, Lord Gwak Il's public endorsement of OITM's operations in the region would lead to part of the funding of the 2008 Iron Front General Election campaign to come directly from OITM. Lord Gwak Il also managed to pressure the Federal Police Agency to drop investigations into OITM over their involvement in Jengsu by leveraging his popularity as well as cooperating with multiple organised criminal groups from Osorra and Hwangchu to silence criticisms from the local people. By 2009, Lord Gwak Il was acting in an unofficial capacity as Operating Director of OITM Hwangchu and overseeing the expansion of OITM in the Jengsu district including the construction of the Jengsu Center for Mental Rehabilitation and the Sapa Stadium.

In 2009, a series of kidnappings would occur targeted at environmental and political activists in the region. Pak Do-Ik and Ryeo Young-Mi along with 5 other activists were abducted by criminals, hired by Lord Gwak Il to silence dissent, whilst their families were pressured into staying silent in order to ensure the safety of the kidnapped. These activists were taken to the Jengsu Center for Mental Rehabilitation where many were forced to work in the brothels servicing Osorran executives and local politicians and officials. The major news outlets, Jengsu Daily and Jengsu Star, were bought out by OITM through shell companies and subsequently published a series of false articles on possible serial kidnapper in the region. The investigation conducted by the Zalu Police Force was abruptly stopped in mid 2010s due to lack of evidence, although some speculated this may also have been a result of pressure from Lord Gwak Il and Deputy Nam.

Aftermath of leaks

Arrests

• On June 26th, 2012, massive riots broke out in Jengsu with a crowd of 16,000 marching on the Jengsu LNG Terminal.
• On June 28th, 2012, Lord Gwak Il was ordered to stand before a hearing from His Majesty's Grand Federal Prosecution Service. Lord Gwak Il fails to appear and escapes to Osorra.
• On June 29th, 2012, local officials Car Seok and An Jaesang were arrested for absuing power, eliciting sexual favours, involvement in a sexual slavery ring, taking bribes and aiding Lord Gwak Il and OITM.
• On June 31st, OITM had their foreign business license revoked and the Jengsu LNG Terminal and Center for Mental Rehabilitation was raided by HPA SOU Guardsmen.
• On July 5th, President of Baesang Energy Combine, Seonu Korain, is arrested on charges relating to the scandal.
• On July 7th, Jengsu Joker's manager Chae Chin-Mae was arrested in Aikteiwa for staying in the country illegally.
• On July 12th, the formation of the Jengsu LNG Prosecution team under Yeo Myung-Dae
• On July 29th, renowned writer Moo Soojin was arrested on perjury charges
• On August 4th, Jengsu District Authority building is raided by police with all councillors being arrested whilst the District Authority is suspended with the federal government taking control of the area.
• On August 16th, former Minister of Business Pak Kwang was arrested for bribery charges as well as eliciting sexual favours.
• On August 18th, District Deputies Seok Iseul, Im Jiwoo, Rang Kyung-Sam, Hwangmok Sun-Hee and U Hyun are arrested on bribery charges as well as variety of other offenses.
• On October 7th, as part of investigations into the Seonu Administration, former National Intelligence Department director Ju Young is arrested for embezzlement and bribery in relation to the Daewhan and Jengsu Scandal.

Arrest of Seonu Chung-Ae

Former Prime Minister Seonu was investigated in relation to the scandal however lack of evidence would lead to the lack of an arrest warrant. A later investigation in her dealings with Daewhan for the acquisition of the G55 Artillery System would lead to the Grand Federal Prosecution Service issue a warrant for her arrest on corruption charges. Seonu attempted to escape the country via private boat but was intercepted by the Hwangchu Coastal Guard who boarded her vessel and arrested her the day after the issuing of her arrest warrant.