No valid charge of corruption against CHEC
…review completed, project to proceed as scheduled – Benn
Public Works Minister, Robeson Benn, has announced that the review of the allegations of corruption leveled against China Harbour Engineering Company (CHEC) has been completed. CHEC had secured the contract for the US$150M expansion of the Cheddi Jagan International Airport (CJIA), Timehri, last November. This award was greeted by a cloud of controversy. The Minister at his Wight’s Lane, Kingston Office, said that he is satisfied that there is “no valid charge of corruption against CHEC.” Benn said that the review by his Ministry has been completed and he will make the recommendation to the Government of Guyana that there is nothing untoward in relation to the corruption charges against CHEC. He drew reference to the recent pronouncements by CHEC’s Regional Director, Zhongdong Tang, when he defended the corruption charges. Benn said that none of the allegations by the World Bank was against CHEC directly. Tang argued that CHEC has only been caught up in the ‘corruption’ debacle as a result of a World Bank technicality “and by its association.” Benn said that he is satisfied that the company has been cleared by the review conducted by the Ministry, and the project will go ahead as scheduled. In addressing the corruption charges by the World Bank, Tang told media operatives that as it relates to the incident in the Phillipines, it is a matter that has nothing to do with CHEC. He had explained that CHEC falls under a Chinese Government holding company, China Communications and Construction Company (CCCC). The Phillipines incident, he explained, involved a company named China Road and Bridge Company (CRBC) and occurred in 2002. At this time, CCCC had no relationship with the implicated company, according to Tang. Neither was CHEC associated with either CCCC or CRBC. It was not until 2005 that both the implicated company (CRBC) as well as China Harbour (CHEC) were taken over by the Chinese holding company, CCCC. The second allegation of corruption levelled against the company that Tang chose to defend involved the former Bangladesh Prime Minister’s son. Tang told media operatives that two Bangladeshi citizens were engaged to provide local agency and consulting services to CHEC’s Bangladesh start-up operations for which they were paid. He said that the services provided by the Consultants included collecting the relevant information, preparing bidding documents, and advising on local requirements. “CHEC did not ask the agents to approach and lobby Mr. Arafat Rahman Koko.” Mr. Rahman is the son of the then Prime Minister. Tang insisted that CHEC was not aware that the consultants were in contact with him. “CHEC was never indicted for committing any offence in relation to this matter and the investigations found no wrongdoing by our company.” Another incident that the Chinese official was forced to defend involved another Chinese national. In that instance it was pointed out that bribery accusation was made against a staff member of the Binhai Company, a subsidiary of CCCC. That matter is still being dealt with in a Chinese court. This is more demonstrated in the World Bank’s debarment, he said. The World Bank decided to impose a ban on seven firms from bidding for road and bridge projects funded by the World Bank from January 2009 to January 2017. Tang was quick to point out that CHEC was not involved in, and has never been involved in any activity that has attracted any sanctions by the World Bank….CHEC itself has never been under any investigation by the World Bank.” It was pointed out that in 2011 the World Bank changed its rules of engagement with Companies and debarment. This rule change by the World Bank saw all subsidiaries of CCCC being debarred automatically which lent to involvement of CHEC “by association.”
