Controversies involving the Chinese company that is building roads across Serbia

The Chinese company China Communications and Construction (CCCC), entrusted with multi-million dollar construction jobs in Serbia, has been linked to corruption, maltreatment of workers abroad and environmental threats.

This company is selected to build the Požega-Preljina motorway segment and the Novi Sad-Kelebija railroad, the projects worth about 1.7 billion dollars, for which the Serbian Parliament recently approved the loan to be granted by China’s Exim Bank.

According to the media, CCCC employs about 120,000 people and operates in 157 countries around the world. In Serbia, CCCC and its subsidiaries work on the Surčin-Obrenovac section of Corridor 11 and other projects like the construction of the Pupin Bridge and an industrial park in Belgrade.

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However, this Chinese giant has been involved in a few controversies in Australia, Kenya, Sri Lanka, Tanzania and other countries, according to foreign media reports. In 2018, Canada prevented the CCCC from purchasing a Canadian company for reasons relating to national security.

CCCC was blacklisted by the World Bank from 2009 to 2017 due to “fraudulent business practices”, which means that during that period the company was not allowed to participate in the construction of any World Bank-funded project.

In 2016, CCCC’s daughter company in Australia was accused of negligence in controlling the construction of a children’s hospital in Perth, since they used a material containing asbestos in roofs.

Also, mistakes were found in the procurement process for the deal, but CCCC denied responsibility.

According to media reports, the authorities in Tanzania have filed indictments against two government officials in 2014, stating that the CCCC has awarded a contract which value has been artificially increased to $523 million.

The project was abandoned after the Tanzanian authorities began to raise questions about its price, which was “twice as high as the price of similar projects,” the media reported.

Also in Tanzania, CCCC came into conflict with the authorities in 2018 for alleged non-payment of taxes after completing the construction of 260 kilometres of a road in that country.

The Chinese company was also engaged in several other controversial projects in Sri Lanka and Kenya.

(Nova Ekonomija, 27.05.2019)


This post is also available in: Italiano

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