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VOA Chinese: China Construction Sued in New York

Voice of America (VOA) Chinese recently reported that BML Properties sued China Construction America (CCA), the U.S. branch of China’s largest construction company, for fraud in the project of constructing the Baha Mar Resort, located in Nassau, capital of the Bahamas. BML accused CCA of using large-scale deception in order to significantly delay the completion of the US$3.5 billion resort program. BML is seeking damages of US$2.25 billion. BML declared that CCA submitted hundreds of millions of dollars’ worth of forged invoices and intentionally created a situation involving a lack of construction workers. CCA also moved equipment and workers to another construction site that BML’s competitor managed. During the construction period, a large number of Chinese government officials visited the United States and the Baha Mar Resort. CCA also billed for their travel and tourist costs, which were largely unrelated to the construction project (such as tickets to the Empire State Building). BML filed for bankruptcy in 2015 due to the major delay in the construction work, and the bankruptcy caused S&P to lower the Bahamas’ sovereign rating. BML also sued CCA in the High Court of Great Britain.

Source: VOA Chinese, December 28. 2017

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