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GNP Iraq Contracts Raise Suspicions

Posted December. 04, 2006 06:44,   

Updated January. 04, 2018 13:36


There could be a suspicious deal between Korea International Cooperation Agency (KOICA) and the Sammi Construction, said Grand National Party lawmaker Shin Sang-jin.

SAMMI Construction won nine bids (worth 41.5 billion won total) out of 13 construction jobs in Iraq and Afghanistan that the KOICA ordered since 2003.

Park Won-yang, the chairman of Sammi construction, was a member of the controversial golf outing on March 1, which led to stepping down of the former prime minister Lee Hae-chan. Lawmaker Shin said on December 3, 밪trong suspicions are arising that the KOICA helped Sammi뭩 rapid growth in the construction field,?adding that 밒n particular, given that SAMMI won all the nine tenders for construction works in Iraq and Afghanistan at a lowest bid, an unlawful chummy network between the KOICA and SAMMI is highly suspicious.?

He explained, 밪ammi won the bid for the IBNISINA hospital construction, the first Afghanistan aid project set up by the KOICA. On the second bid after the winner had given up the contract, KOICA changed the qualification for the bidder from businesses with specialized construction license to businesses with overseas construction license,?adding that 밙OICA said that the changed qualification was aimed at easing conditions toward tenderers. On the contrary, the change reduced the number of qualified bidders drastically.?

While the KOICA has announced that there were only 3,100 licensed companies for overseas construction works and 1,200 firms with specialized construction license, there are actually 35,089 firms licensed in specialized construction and a mere 1,985 firms licensed for overseas construction works.

Shin stated, 밃fter Sammi Construction won four construction contracts in Afghanistan and its total foreign bids reached to $8 billion, the KOICA coincidentally enacted an additional clause saying, 멦enders shall be limited to the tenderers who have won more than $5 million in international construction work total prior to this bid.뮅

밢nly six bids out of nine that Sammi won were placed under the public notice of tender for construction works. The Board of Audit and Inspection (BAI) should launch an investigation into false data and answers of KOICA, which seem to be an attempt to cover up its connection with Sammi,?said Shin.

The KOICA said in response, 밯e singled out Sammi as a successful bidder because although we posted advertisements in major daily newspapers more than several times, there were no construction companies other than Sammi who applied for the Iraq-Afghanistan contract, as the contract amounts being dealt with are small and Iraq and Afghanistan are countries at war.