An audit has uncovered significant financial irregularities within the Busan Fire and Disaster Headquarters, including the misappropriation of funds meant for support groups and the improper use of operational expenses for personal purchases. The findings, detailed in a comprehensive audit report released by the Busan Metropolitan City Audit Committee, highlight a pattern of mismanagement and potential fraud that has led to disciplinary actions and police investigations.
Misappropriation of Support Group Funds
The audit revealed that at least two staff members responsible for managing funds for support groups within the fire department allegedly diverted substantial amounts to their personal accounts. One staff member, identified as ‘A’, is accused of transferring approximately 34 million won (about $25,000 USD) of support funds, designated for recipients between January 2022 and July of the same year, into their own bank account. This individual reportedly confessed to the misappropriation after the city audit commenced.
Another staff member, ‘B’, allegedly transferred 800,000 won (about $600 USD) of support funds to their personal account. Furthermore, ‘B’ is reported to have disbursed a total of 8.8 million won (about $6,500 USD) to two individuals who had not applied for support funds, raising further questions about the distribution process and oversight.
In response to these allegations, the Fire and Disaster Headquarters has dismissed staff member ‘A’ and reported the case to the police. The City Audit Committee has also referred staff member ‘B’ to the police for investigation.
Improper Use of Operational Expenses
Beyond the issues with support funds, the audit also uncovered the misuse of operational expenses, totaling approximately 8.46 million won (about $6,200 USD). These funds, intended for the official operations of the former Fire Chief’s office, were allegedly used for a variety of personal items. Purchases included household appliances such as electric rice cookers and humidifiers, personal hygiene products like soap, and even groceries such as sesame oil and cooking oil. The expenses also covered services like dry cleaning.
According to regulations, funds allocated for an office’s operation are considered public assets and should be used strictly for official purposes. Personal consumption items are the responsibility of the individual user to purchase.
Irregularities in Human Resources and Recruitment
The audit also identified several problems within the department’s human resources and recruitment practices. Concerns were raised about a lack of transparency in performance evaluation standards, which potentially compromised fairness in the workplace. Additionally, documents related to the hiring process, including interview evaluation sheets for fixed-term employees, were reportedly discarded before the mandatory retention period had expired.
In some instances, the actual screening process deviated from the stated criteria outlined in the recruitment plans. Further issues included the appointment of an acting police chief who did not possess the required qualifications. The department also faced criticism for filling civilian advisory committee positions exclusively with lawyers, potentially creating a bias in areas where such concentration is not advisable.
Context of the Audit
This comprehensive audit, the first of its kind for the Busan Fire and Disaster Headquarters in a decade, was initiated to analyze the root causes of systemic problems within the organization’s operations. The objective was to identify areas for improvement and propose practical solutions to enhance efficiency and accountability. The findings underscore the need for stricter financial controls, transparent HR practices, and robust oversight mechanisms to prevent future misuse of public funds and ensure the integrity of the department’s operations.
The Busan Fire and Disaster Headquarters has stated its commitment to addressing the issues raised in the audit report and implementing necessary reforms to restore public trust and ensure responsible management of resources.
