Maravi

Construction body writes to World Bank over Chinese firm

Construction body writes to World Bank over Chinese firm
Written by Chibaula Silwamba
Friday, January 30, 2009 3:19:35 AM

THE National Council for Construction (NCC) has written to the World Bank asking for details on reports that the bank has debarred China Geo-Engineering Corporation for five years over alleged corruption.

But works and supply minister Mike Mulongoti has said the World Bank's blacklisting of China Geo Engineering Corporation will have no consequence on the projects the company is undertaking in Zambia.

Commenting on the World Bank's debarment of four Chinese contractors, including China Geo Engineering Corporation, from tendering the bank's financed projects over alleged corruption practices in the projects they were doing in Philippines, NCC executive director Dr Sylvester Mashamba confirmed that he had written to the World Bank over the matter.

“Yes, we have written to the World Bank. We want details on what happened. We are interested in this because the World Bank and the DfID [UK's Department for International Development] are our partners in a project aimed at reducing corruption in the construction industry. The project is called CoST (Construction Sector Transparency). The World Bank is our major partner. The countries involved in this project are Zambia, Tanzania, Philipines, [Vietnam] and the UK itself. Zambia is doing a pilot project under the World Bank and the DfID,” said Dr Mashamba.

CoST is aimed at making sure that government funded construction projects are delivered on time, at high quality and at a reasonable price. At the launch of CoST in Tanzania in May 2008, the DfID stated that the initiative is a two year pilot scheme in partnership with governments, private sector and civil society.

“Many countries face real problems of corruption in construction, which costs taxpayers billions of dollars per year, leading to shoddy and unsafe infrastructure,” stated the DfID.

And Mulongoti said Zambia could not take a punitive action against a contractor based on what it did in other countries.

“I don't know that what happens in Philippines happens in Zambia. We have nobody complaining here and if we say what happens elsewhere happens here, we will just inconvenience innocent people because the people working for this company are Zambians,” Mulongoti argued.

“These are international companies so in other countries they find fertile ground for corruption, but when they come to countries like Zambia the ground is not fertile for corruption. If there is any evidence that there is corruption [here] we will deal with it.”

The World Bank named Chine Geo-Engineering Corporation as one of the seven firms from China and the Philippines that were debarred for engaging in collusive practices under a major World Bank financed roads project in the Philippines.

China Geo-Engineering Corporation was debarred for five years but the debarment could be reduced or terminated after three years if the firm puts in place a compliance programme satisfactory to the World Bank.

The World Bank finances several projects in various sectors including roads in Zambia and China Geo-Engineering Corporation is one of the many Chinese companies constructing roads in Zambia.

China Geo-Engineering Corporation was among 42 road contractors that were blacklisted last year by the Zambian government for doing shoddy works.

This followed late president Levy Mwanawasa's complaint and directive that all construction companies found to have done shoddy works should be blacklisted.

President Mwanawasa issued the directive in January, 2008 at Chiutika Basic School in Mfuwe in Eastern Province after he was informed that Tomorrow Investments had abandoned construction works on the Chipata-Mfuwe road.

To date law enforcement agencies have not cleared China Geo-Engineering Corporation over the matter.

Labels: CHINA GEO ENGINEERING CORPORATION, CHINESE, CONSTRUCTION, DFID, MIKE MULONGOTI, NCC, World Bank

posted by MrK @ 3:19 AM