Bluenier, a Korean company supplying components to the Air Force, has been found to have swindled about 24 billion won ($21 million) by manipulating the records of imports and exports and obtaining false tax invoices, the Board of Audit and Inspection said on Monday.

The company collected certifications of import declaration worth about 17 billion won by exporting waste materials for down converters and importing them back to dodge import restrictions. A down converter is one of the main components for fighter jets such as the KF-16. The BAI said Bluenier also acquired 7.9 billion won worth of tax invoices by claiming to have purchased components that they did not. The company submitted the manipulated documents to receive about 24 billion won in payment from the Air Force and the Defense Acquisition Program Administration, the BAI said.

The Bluenier president used the money to create slush funds, purchase an apartment and pay off the accomplices, including a warrant officer of the Air Force Logistics Command. The BAI reported the company president and the accomplices to the prosecutors on fraud charges. 

(jhl@heraldcorp.com)