ST Palm Fined 2.925 Million Yuan for Bid Rigging and Illegal Subcontracting in ADB Loan Project

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โดย Jiemian·CN·Read original
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Palm Eco-Town Development Co., Ltd., listed as ST Palm, announced that it has received an administrative penalty decision from the Zhengzhou Comprehensive Urban Law Enforcement Bureau. An investigation found that in the Asian Development Bank loan project for rural clean energy development and atmospheric environment improvement in Henan, the company formed a consortium with Hexiang Construction Engineering Co., Ltd. and won the Xinyang project, worth 298.5709 million yuan, and the sixth phase project, worth 286.4368 million yuan. Because the project management personnel listed in the bidding documents of different bidders were the same person, the company was found to have engaged in bid rigging. At the same time, the company subcontracted low-pressure pipeline works and civil works from the contracted project to other companies, which was deemed illegal subcontracting. The Zhengzhou Comprehensive Urban Law Enforcement Bureau imposed a fine of 2,925,038 yuan on the company for bid rigging, accounting for 0.69 percent of the company's audited net assets attributable to the parent company for 2025. Penalties for the illegal subcontracting portion will be imposed after the project completion acceptance date and contract price are determined. The company said it has carried out a comprehensive risk review, improved relevant systems, and initiated accountability procedures against responsible personnel, and that this penalty will not have a material adverse impact on its operating performance.

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棕榈生态城镇发展股份有限公司Private▼ Negative
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ST Palm received the administrative penalty decision for bid rigging and illegal subcontracting, with further penalties pending.

鹤翔建筑工程有限公司Private± Mixed
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Hexiang Construction was the consortium partner in the bid-rigging scheme but no penalty against it is specified.

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