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China Communications Construction Company

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China Communications Construction Company

China Communications Construction Company, Ltd. (CCCC) is a Chinese majority state-owned, publicly traded, multinational engineering and construction company primarily engaged in the design, construction, and operation of infrastructure assets, including highways, skyways, bridges, tunnels, railways (especially high-speed rail), subways, airports, oil platforms, and marine ports. CCCC has been a contractor for numerous Belt and Road Initiative projects. It is included in the Fortune Global 500 list for 2016.

CCCC's predecessors can be traced back to the Qing Dynasty, when the Junpu Engineering Bureau was established in 1905. The company was officially formed in 2005 by the merger of China Road and Bridge Corporation (CRBC) and China Harbour Engineering Company (CHEC), which focus on transportation infrastructure and marine infrastructure, respectively. In 2006, the company listed shares on the Hong Kong Stock Exchange, followed by a listing on the Shanghai Stock Exchange in 2012.

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.

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.”

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. Teodorin Obiang settled the case, agreeing to forfeit over US$30 million worth of U.S. assets.

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 per cent of Putrajaya Perdana Bhd for US$244 million (RM957 million) and 90 per cent of Loh & Loh for US$71 million (RM283 million). However, these allegations were denied by Malaysia Rail Link Sdn Bhd, the owner of the railway project.

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. The briefing points for the Beijing meeting stressed that "while simultaneously completely resolving 1MDB and SRC debts". Amhari testified to his unease about the Beijing mission, "I was worried about being involved directly in Najib and Low Taek Jho’s plan to cover up the loss of 1MDB funds and the repayment of International Petroleum Investment Co (IPIC) debts or the preparation of political funds”.

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