Prosecutors said Tuesday they plan to question former President Lee Myung-bak's nephew this week over his involvement in the alleged creation of Lee's slush fund at a local auto parts maker run by his family.

The Seoul Eastern District Prosecutors' Office summoned Lee Dong-hyung, vice president of DAS, for questioning at 10 a.m. on Wednesday.

Lee is a son of Lee Sang-eun, the eldest brother of the former president. He is also the largest shareholder in IM, a partner firm of DAS. IM was raided by the investigators last week over the allegations it created a 12 billion-won ($11 million) slush fund under dozens of borrowed names. 

The former president faced the same allegations in 2009, when he was just elected and was later cleared of the charges as an independent counsel concluded it was a DAS employee's embezzlement of company funds.

But rumors have persisted that the former President Lee is the real owner of DAS. Suspicions resurfaced late last year following media reports that the ex-president's son, Si-hyung, has been named to head key overseas DAS units in China.

Company filings show that Lee Dong-hyung has been demoted to the vice president post from the chief vice president, raising suspicion that he became deprived of control in the company leadership.

Early this month, Rep. Park Beom-kye of the Democratic Party raised allegations that Lee Sang-eun sent 900 million won to IM between 2009 and 2010 in an attempt to evade the gift tax associated with giving money to his son.(Yonhap)