China to crack down on illegal construction bidding

Updated: 2012-05-04 19:16


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BEIJING - A special campaign has been launched to eliminate the illegal practice of "borrowing" business credentials for the purpose of bidding on construction projects, a central government office said Friday.

Several companies have used qualification certificates from other companies to bid on construction projects, which may result in safety risks, according to a statement from the central office for preventing malpractice in the engineering and construction fields.

During the campaign, the office will inspect construction projects built with a government investment of 5 million yuan ($793,000) or greater since 2011, the statement said.

Companies that are found to have used certificates from other companies to bid on projects will receive fines and have their business licenses revoked, while companies that have lent the certificates will also be punished, the statement said.

Any criminal activity or safety risks that are uncovered will result in the reporting of the heads of the companies to judicial organs and the publicization of the companies' names, the statement said.

The campaign will focus on state-owned enterprises, although relevant supervision departments will also be held accountable, the statement said.