Photo: Martín Vizcarra, Peru’s expresident between 2018-03-23 to 2019-11-29 in the Foreign Minister swearing-in ceremony (April 2018 ). By: Ministerio de Relaciones Exteriores de Perú. Source: Flickr.
China Weihai Construction Group Co Ltd. provides engineering and construction services for housing projects, installation, and engineering of electrical equipment and other related services. China Railway No10 Engineering Group Co Ltd. focuses on large construction projects such as roads, tunnels, and railway tracks, among others. Both companies have been involved in a series of scandals in Peru, involving corruption through bribes for access to classified information, subcontracting of labor, and irregular awarding of bids for infrastructure projects.
In the specific case of the construction of a hospital in the city of Puno, both companies are being investigated for allegedly obtaining the bid through certain illicit actions. The bidding required that the companies could certify their previous experience in the construction of hospitals and other buildings related to the health sector. The tender was awarded to the companies, but a subsequent investigation by the Peruvian State Contracting Authority (OSCE) showed that these requirements were approved without any kind of support. The investigation showed that the companies used false documents and submitted a series of certifications that were not related to the requirements for the work. Once this came to light, the contract was rescinded by the State and future sanctions are expected for the Chinese companies. This is part of a series of corruption scandals that took place during the government of former president Martin Vizcarra.
La República (Perú): Investigan a empresas chinas que hacían hospital en Puno.
Find out more:
Bloomberg: Weihai Construction Group Co Ltd.
Bloomberg: China Railway No10 Engineering Group Co Ltd.