The Chinese companies suffered from a poor image after the media reported about their tax evasion case in Bangladesh, but seems to have failed to deter them.
Last year, in December, Bangladesh authorities discovered that China Road and
Bridge Corporation (CRBC), a subsidiary of China Communications Construction
Company (CCCC), was involved in the tax evasion while importing the construction
material for government projects, Bangladesh Live News reported.
After the case of embezzlement of funds in megaprojects came under the spotlight,
the Bangladesh authorities forced the Chinese government to withdraw from financing
three infrastructure projects.
But it seems that these media reports don’t stop Chinese companies from hiring the
sub-contractors from Beijing and also show them as a part of the main company to
avoid paying the taxes to the Bangladesh government, Bangladesh Live News
reported citing some unconfirmed reports.
Chinese companies reportedly hired Chinese sub-contractors and showed them as a
part of the main company in Dhaka-Chittagong Railway Line. A Chinese company
working on this project has hired 16 Chinese sub-contractors and shown them as a
part of the main company. Another project helmed by the Chinese company Tebian
Electric Apparatus (TBEA) working with Dhaka Power Distribution Company (DPDC)
has hired four Chinese sub-contractors.
A Chinese company has even taken a six-storey building on lease in Narayanganj in
which employees working on the projects are kept. Besides, coal plant and
infrastructure projects in Bangladesh are causing widespread displacement of highly
populated rural areas and endangering their ecosystem, reported Bangladesh Live
News.
It seems Beijing has failed to act against the corruption and malpractices of Chinese
government-affiliated companies.
Corruption is often a key element of Chinese economic engagement in the South
Asian region. Estimates suggest that Beijing was responsible for the largest Illicit
Financial Flows (IFFs) related to corrupt business practices, by value globally,
particularly in developing countries.
Meanwhile, in May, another case of tax evasion against the Chinese company, SinoKemmed Trading Co. unearthed by the Bangladesh authorities.
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Sino-Kemmed Trading company, a subsidiary of Global Pet Products Co Ltd. located
in Shenzhen, has declared to send a consignment of coated calcium carbonate to one
of its Dhaka-based associates namely ‘NB Trading House’. However, on physical
examination, the Bangladesh officials recovered 120 tonnes of high-value Dextrose
Monohydrate. The Dextrose was concealed as the label was that of coated calcium
carbonate inside, Bangladesh Live News reported.
According to the media report, the consignment arrived at Chittagong port and was
carried in five containers under Vashi Shipping Pvt Ltd. If the authorities had not
detected it at right time then it would have resulted in the loss of Bangladeshi Taka
(TK) 42 Lakhs 13 thousand to the exchequer.
Some media reports suggest that the port authorities/ customs were under
tremendous pressure from senior levels not to disclose the name and real identities of
Chinese companies.
Though Beijing projects itself as a reliable economic partner, its economic partnership
seems to be turning out as an albatross for the recipient countries. (ANI)
