Firm that won bid for Shenzhen dump transferred contract, Chinese media says
Luwei Property Management agreed to hand over construction and operation of the site where the landslide occurred to a second company, one year before the winner was even decided
The company that won the bid to build and operate a construction waste dump that triggered the massive landslide at a Shenzhen industrial park appeared to be unqualified for the job, mainland media reported yesterday.
Luwei Property Management Company contracted the project out to another firm, which paid 750,000 yuan (US$115,670 or HK$896,750) in 2013 – a year before the winner of the bid was decided, according to the reports.
Luwei’s business spans indoor and outdoor cleaning, indoor environment treatment, property management, car parks and labour supply. But it doesn’t list handling such dumps in its business registration.
It won the right in February last year to run the Hongao Residue Mud and Earth Temporary Dump in Guangming New District.
Such dumps are used to store construction waste like unneeded earth and other materials that are by-products of building, renovating or dismantling roads, as well as other large projects.
The company, founded in August 2001, was mostly owned by an individual named Zhang Juru, who held 92 per cent of the shares while a second person, Zhang Jinhua, held the rest.
Public records show the company has won numerous government contracts over the years, including management of property and security at several primary schools in the Baoan district.
