An audit found that a KEPCO MCS employee violated regulations while pushing ESG (environmental, social, and governance) projects, including awarding a private contract to a company in which the employee held equity. The employee was dismissed.
KEPCO MCS is a subsidiary of Korea Electric Power Corporation that handles businesses such as electricity meter reading and delivery of electricity bill statements.
According to materials Rep. Kim Tae-seon of the National Assembly's Climate, Energy, Environment and Labor Committee received from KEPCO MCS on the 12th, the employee's misconduct occurred in Aug. 2023 as KEPCO MCS advanced the "lonely death prevention project through electricity meter readers."
At the time, A, then head of the ESG New Business Planning Team, split the project into 12 parts to secure private contracts so that a company founded by a colleague who had worked together at another KEPCO subsidiary in the past would win the work. A held 15% equity in the company (worth about 30 million won). The total value of the contracts the company won from KEPCO MCS reached 195.4 million won.
It also emerged that from Feb. to Apr. 2023, during improvement work on the KEPCO MCS president's office and the Deputy Minister and Minister offices, as well as office remodeling related to the head office business transfer, A split contracts so an acquaintance's company could secure private contracts. Although regulations required selecting a contractor through competition, A proceeded with private contracts.
A's colleague and superior also failed to review the validity of the private contracts and did not go through the process of responding to the audit office's routine audit request.
The KEPCO MCS audit office demanded dismissal for A and pay cuts for two related employees. The audit findings were finalized in Jun. this year.
Rep. Kim said, "Awarding a private contract to a company in which one holds equity is a serious act of misconduct that undermines trust in public institutions," adding, "KEPCO MCS must take thorough action and prepare measures to prevent a recurrence."