China wants proof versus blacklisted firms

A Chinese diplomat said yesterday that China would take action against four companies blacklisted by the World Bank if the financial institution could present proof that these firms were involved in “collusion” with some Philippine firms in rigging the bid for a Philippine road project.

The diplomat, who spoke on condition of anonymity, said the WB should be able to present proof against the Chinese construction companies for his government to take necessary action.

“There should be proof. We want proof,” he said.

The diplomat said the Chinese government has welcomed and taken note of the WB report and blacklisting of companies for anomalous dealings for the national road improvement project.

A transcript of the Jan. 15 press conference of Foreign Ministry spokesman Jiang Yu posted on the website said the Ministry of Commerce would reply to the report.

Jiang would not comment when asked if the WB blacklisting was fair and if China plans to appeal the case to the financial lending institution.

Asked about the ban because of the companies’ alleged involvement in commercial malpractices, Jiang said the Chinese government would supervise overseas activities of Chinese companies, but would leave it to the Ministry of Commerce to answer.

US Ambassador Kristie Kenney admitted that the WB report on anomalous contracts and suspension of local construction groups for alleged irregularities is ‘‘complicated,” but did not comment on whether the Philippines suffered another big blow in its bid to get approved by the Millennium Challenge Corp. (MCC) for anti-corruption funds because of the WB report.

Companies blacklisted by the WB were Philippines’ E.C. de Luna Construction Corp., Cavite Ideal International Construction and Development Corp., and CM Pancho Construction Inc.; China Road and Bridge Corp.; China State Construction Corp. and China Wu Yi Co. Ltd.; China Geo-Engineering Corp.; and Korean firm Dongsung Construction Co. Ltd.