Authorities in Bangladesh discovered that China Road and Bridge Corporation (CRBC), a subsidiary of China Communications Construction Company (CCCC), was evading taxes by importing construction materials for government projects.
Bangladesh authorities compelled the Chinese government to withdraw from financing three infrastructure projects after the case of financial misappropriation in megaprojects was brought to light, according to Bangladesh Live News.
However, media reports do not prevent Chinese corporations from recruiting Beijing-based subcontractors and presenting them as part of the primary company in order to avoid paying taxes to the Bangladesh government.
In the Dhaka-Chittagong Railway Line, Chinese businesses allegedly employed Chinese subcontractors and presented them as part of the main enterprise. A Chinese firm working on the project employed 16 Chinese subcontractors and presented them as if they were employees of the main firm.
Four Chinese subcontractors have been contracted for a project led by the Chinese business Tebian Electric Apparatus (TBEA) in collaboration with the Dhaka Power Distribution Company (DPDC).
Employees working on the projects are staying in a six-story structure leased by a Chinese company in Narayanganj.
Furthermore, coal plant and infrastructure projects in Bangladesh are displacing large numbers of people from rural areas and threatening the environment, according to Bangladesh Live News.
Beijing has failed to take action against the corruption and misbehaviour of Chinese government-owned businesses.
Corruption is a frequent feature of Chinese business activity in South Asia. According to estimates, Beijing was responsible for the world’s largest Illicit Financial Flows (IFFs) due to corrupt business practices in terms of value, especially in developing nations.