China's top anti-corruption agency publicly criticized six major state-owned enterprises after inspections found corruption and sanctioned violations, the state-run Xinhua news agency reported in mid-June 2015, including Dongfang Electric Corporation of Chengdu, the main city of Sichuan province in China.
That company, according to official data from the register that "Vijesti" had access to, is the ultimate owner of the company "Dongfang Electric International Corporation", which is the holder of a consortium that also includes BB Solar Blaž Đukanović (son of the President of Montenegro), Bemax and the company Permonte. They offered 54.427.700 euros for the execution of works for the ecological reconstruction of the Thermal Power Plant in Pljevlja, slightly lower than the price from the tender of Elektroprivreda (EPCG).
"Some leaders of 'Dongfang Electric Corporation', mainly those in charge of material procurement, accepted bribes from suppliers," China's state-run Xinhua news agency reported on June 17, 2015, as reported by the Global Times.
According to data from the "D&B Hoovers" registry, the headquarters of both companies is in the Chinese city of Chengdu.
"Vijesti" data on two related companies were obtained from the global private register of world companies D&B Hoovers, in whose register there are about 120 million companies worldwide. Information about the company D&B Hoovers can be found on the website of the American agency "Bloomberg". Its owner is the well-known American consulting and rating (assesses credit ratings) company "Dun&Bradstreet". The Central Commission for Disciplinary Inspection of the Communist Party of China (CCDI) publicly criticized the companies: "China National Nuclear Corporation", "China Nuclear Engineering Corporation", "Dongfang Electric Corporation", "China Electronics Technology Group Corporation", "China Electronics Corporation" and "China General Technology Group".
"All six companies have holes in their management that lead to the loss of state assets, especially abroad," CCDI said. Xinhua reported at the time that "business bribery and nepotism were also frequently seen."
The CCDI began a disciplinary inspection of 26 state-owned enterprises in March 2015, focusing on the nation's energy and communications giants. The commission started publishing the results of inspections in June 2015.
"Dongfang Electric International Corporation", a company interested in environmental rehabilitation of the TPP, also has a strategic cooperation agreement with the Russian state energy company "RAO", which was previously interested in the privatization of Pljevlja Thermal Power Plant. The company's website states that it is one of the leading Chinese state-owned companies for energy and energy technologies, that its facilities account for one third of China's total production in thermal power plants, as well as 40 percent of production in hydropower plants. "As an active global energy contractor, 'DEC Ltd.' has done more than 100 projects around the world in the field of thermal energy, hydropower, environmental protection and others, and was included in the list of the best Chinese contractors and ENR Top 225 international contracts", it was stated on the website of this company. Ecological reconstruction of the thermal power plant is also important because of the heating of Pljevlja, and the first objections to the tender came from two competitors of the Chinese-Montenegrin consortium. One of the more important remarks is to check whether all suppliers have met the technical conditions prescribed by the tender documentation due to the difference in price. The difference in the offered price is up to 43 million euros.
The offer of 72.539.500 euros including VAT was sent by the German-Slovenian consortium "Hamon-Rudis", and the most expensive offer was submitted by the Chinese group "Shangai Electric" from Shanghai and it amounts to 97.922.683 euros.
Americans on corrupt payments
In 2012, the US Department of Justice announced that executives at the California company "Control Components", Inc. (CCI), a married couple, Stuart and Hong Carson, admitted to corrupt payments in China and numerous other countries. They were first mentioned in 2009. A media release indicated that Stuart and Hong Carson caused CCI to pay approximately $5,3 million to foreign executives at nine state-owned enterprises, including six Chinese ones: Jiangsu Nuclear Power Corporation, Guohua Electric Power ”, “China Petroleum Materials” and “Corporation Corporation”, “PetroChina”, “Dongfang Electric Corporation” and “China National Offshore Oil Corporation”.
According to the report, Stuart and Hong Carson sent an e-mail approving corrupt payments to secure jobs for the California firm CCI.
In July 2009, CCI pleaded guilty to violating anti-corruption regulations. CCI admitted to making corrupt payments to foreign executives in approximately 1998 countries, including China, from 2007 to 36. The company eventually paid $18,2 million in fines.
Stuart Carson was sentenced to four months in prison and ordered to pay a $20.000 fine. His wife, Hong Rose, was sentenced to six months of house arrest, a $20 fine and 000 hours of community service.
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