Misconduct
Since the mid-2000s, CCCC has been implicated in misconduct including fraud and corruption in Bangladesh, Equatorial Guinea, Malaysia, and the Philippines. Penalties included debarment by the World Bank and the Bangladesh government.[3][7]
Bangladesh
In early 2018, CCCC subsidiary, China Harbour Engineering Company, was debarred for attempted bribery of a senior government official in relation to a contract for the expansion of the Dhaka-Sylhet Highway. Finance Minister AMA Muhith said: "[The expansion of] Dhaka-Sylhet Highway, somehow, we had to drop it. Because, the party who got the contract, they came up, in the very beginning, with offer of bribe, open bribe.
So, we gave the money, which they gave to some of our officials, back to the Chinese embassy and naturally blacklisted the company."[8][9][10][11]
Equatorial Guinea
An investigation by the U.S. Department of Justice alleged that, in 2009, CCCC paid US$19 million to Teodorin Obiang, Vice President of Equatorial Guinea, in relation to a contract for a highway.[12] Teodorin Obiang settled the case, agreeing to forfeit over US$30 million worth of U.S. assets.[13]
The DOJ case was settled, but cccc has continued to face scrutiny in other African nations for governance issues.[14]
Malaysia
CCCC has been implicated in schemes devised by ex-Prime Minister Najib Razak and advisor Low Taek Jho to bail out debts related to 1MDB. The Malaysian government agreed with CCCC to construct an East Coast Railway line for RM60 billion. Government documents revealed that the contract required CCCC to buy shares of companies related to Low, specifically, 70 percent of Putrajaya Perdana Bhd for US$244 million (RM957 million) and 90 percent of Loh & Loh for US$71 million (RM283 million).[15][16] However, these allegations were denied by Malaysia Rail Link Sdn Bhd, the owner of the railway project.[17]
Yet, in September 2019, during Najib's trial for corruption in relation to 1MDB, his previous assistant, Amhari Effendi Nazaruddin, testified that he traveled to Beijing China in June 2016 to discuss proposals for infrastructure projects that would help to pay off the debts of 1MDB and its former unit, SRC International.[18][19]
Philippines
In 2009, the World Bank Group debarred CCCC and CRBC until 2017 for fraudulent practices under Phase 1 of the Philippines National Roads Improvement and Management Project.[3][7][24] Together with five other companies, CCCC and CRBC had colluded to enter non-competitive, artificially high bid prices.[25]
Russia
The company has participated in significant ventures aimed at revitalizing Russia's shipbuilding and port infrastructure, including projects that enhance Russia's Northern Sea Route.[26][27][28]
Bangladesh
In early 2018, CCCC subsidiary, China Harbour Engineering Company, was debarred for attempted bribery of a senior government official in relation to a contract for the expansion of the Dhaka-Sylhet Highway. Finance Minister AMA Muhith said: "[The expansion of] Dhaka-Sylhet Highway, somehow, we had to drop it. Because, the party who got the contract, they came up, in the very beginning, with offer of bribe, open bribe.
So, we gave the money, which they gave to some of our officials, back to the Chinese embassy and naturally blacklisted the company."[8][9][10][11]
Equatorial Guinea
An investigation by the U.S. Department of Justice alleged that, in 2009, CCCC paid US$19 million to Teodorin Obiang, Vice President of Equatorial Guinea, in relation to a contract for a highway.[12] Teodorin Obiang settled the case, agreeing to forfeit over US$30 million worth of U.S. assets.[13]
The DOJ case was settled, but cccc has continued to face scrutiny in other African nations for governance issues.[14]
Malaysia
CCCC has been implicated in schemes devised by ex-Prime Minister Najib Razak and advisor Low Taek Jho to bail out debts related to 1MDB. The Malaysian government agreed with CCCC to construct an East Coast Railway line for RM60 billion. Government documents revealed that the contract required CCCC to buy shares of companies related to Low, specifically, 70 percent of Putrajaya Perdana Bhd for US$244 million (RM957 million) and 90 percent of Loh & Loh for US$71 million (RM283 million).[15][16] However, these allegations were denied by Malaysia Rail Link Sdn Bhd, the owner of the railway project.[17]
Yet, in September 2019, during Najib's trial for corruption in relation to 1MDB, his previous assistant, Amhari Effendi Nazaruddin, testified that he traveled to Beijing China in June 2016 to discuss proposals for infrastructure projects that would help to pay off the debts of 1MDB and its former unit, SRC International.[18][19] The briefing points for the Beijing meeting stressed that "while simultaneously completely resolving 1MDB and SRC debts".
Philippines
In 2009, the World Bank Group debarred CCCC and CRBC until 2017 for fraudulent practices under Phase 1 of the Philippines National Roads Improvement and Management Project.[3][7][24] Together with five other companies, CCCC and CRBC had colluded to enter non-competitive, artificially high bid prices.[25]
Russia
The company has participated in significant ventures aimed at revitalizing Russia's shipbuilding and port infrastructure, including projects that enhance Russia's Northern Sea Route.[26][27][28]
U.S. sanctions
In August 2020, the United States Department of Commerce placed several CCCC subsidiaries on the Bureau of Industry and Security's Entity List for their construction work to militarize artificial islands in the South China Sea.[29][30][31] The same month, the United States Department of Defense released the names of additional "Communist Chinese military companies" operating directly or indirectly in the United States. CCCC was included on the list.[32][33] In November 2020, Donald Trump issued an executive order prohibiting any American company or individuals from owning shares in companies, including CCCC, that the U.S. Department of Defense has listed as having links to the People's Liberation Army.[34]
