Koreans Probe Lost Sakhalin Deposit
- By Unknown
- Apr. 19 2005 00:00
Last year, the railroad agency agreed to invest in an oil field project on Sakhalin Island and paid a deposit of $6.2 million on the deal to investment group Alfa Eco. The Russian government later denied approval for the project and the Koreans decided to withdraw from the contract.
Earlier this month, Alfa Eco said it would return only $2.7 million of the deposit, according to the terms of the agreed contract. The Board of Audit and Inspection of Korea last week said the railroad "incurred damage to the nation by jumping into the project without legal basis, survey of profitability, as well as appropriate internal decision-making process."