Ecuador: Prosecutor investigates China company for seven crimes and alleged corruption

Ecuador: Prosecutor investigates China company for seven crimes and alleged corruption

Jan. 9, 2019– Mary Greeley News – A Chinese steel mill located in Canton Milagro, in the province of Guayas, is investigated by the Prosecutor’s Office for alleged acts of corruption.

At least seven crimes committed by the company Xin Long S.A, including alleged money laundering, customs and tax fraud, job insecurity and environmental pollution.

According to the Superintendence of Companies, in this steel factory are listed as general manager Jinshui Yao and as president Xiahui Liu. In total there are three partners.

These amounts contradict what was found in the company’s facilities, following a raid carried out by the Office of the Prosecutor on December 27. The operation was executed after the complaint filed by the National Customs Service (Senae), for the inconsistency’s millionaire in the movements of bank accounts and imports.

Yesterday they presented this case Iván Granda, undersecretary general of Political Action of the Presidency; Raúl Ledesma, Minister of Labor; and, Muñoz, in a press conference in the Zonal Government, in Guayaquil.

They explained that in the raid, machinery was temporarily seized for customs fraud.

According to Senae, imported equipment and supplies valued at USD 30 million and declared only for USD $413.000.

Also, in the action were USD $116.820 hidden in caches. In addition, documents that allegedly prove a tax evasion of shareholders who recorded revenues of more than USD 8 million, but the statements total only USD 3 million.

Ecuador: Prosecutor investigates China company for seven crimes and alleged corruption

According to Senae, high-cost Chinese-origin machinery was found without acquisition supports, extensive warehouses filled with imported goods without acquisition supports, there was no information on internal or external purchases.

Minister Ledesma added that it was found that there were more than 50 employees, although only 24 had a contract.

The majority were foreigners, without work permits; they worked seven days a week and with a payment of USD 15 per day without any formal contracting or affiliation to the IESS.

Due to the prevarication, the company was closed. The SRI established a criminal complaint that is ongoing. Customs also made a closure because they did not have import permits. “If they do not present them in 30 days, there will be an administrative process, which could lead to the final seizure of the goods.”

But this company, surrounded by banana and cocoa plantations, has already registered other problems before.

Last April it was closed for not complying with the environmental license for its operation. The authorities yesterday presented a video in which it was mentioned that senior government officials would be linked to money laundering with this company.

“The raid was carried out on the Chinese company Acería Xin Long SA, located in the canton of Milagro, for alleged money laundering linked to the corruption cases Glas-Topic and Rivera, during the government of Rafael Correa,” said the images. . Regarding the alleged linkage of former government officials, Granda added that the investigation is under preliminary investigation. He mentioned that elements of conviction have been established about the existence of that relationship and that it will be the fiscal of money laundering, Ivonne Proaño, who will have to determine it. “We have denounced money laundering, but we think it is important that the Office of the Prosecutor, which is another state power, also start the investigation by testaferrismo,” Granda said.

Mary Greeley News
www.marygreeley.com

credit: https://www.elcomercio.com/actualidad/fiscalia-investigacion-empresa-china-delitos.html