The Vizcarra government under suspicion: accused of favoring Chinese companies

The government of Martín Vizcarra is in the eye of the storm after a collaborative witness revealed information about alleged modifications to the State Contracting Law that would have favored Chinese companies during his administration. The collaborative witness, identified as 08-2023 within the framework of the Case The Untouchables of Corruption, detailed before the Special Team of Prosecutors against Corruption of Power (Eficcop) that the regulation of Law 30225 would have been changed to benefit Chinese construction companies in bidding processes for works of the Ministry of Transportation and Communications, a sector to which the Decentralized Roadways (PVD) was attached. According to the witness's testimony, during Vizcarra's government, the regulation would have been modified so that only a select group of companies could obtain a letter of financial solvency from a bank, a necessary requirement to accept a bidder's proposal. This situation would have favored Chinese companies, leaving local firms out of competition. The former Works Manager of PVD, Alcides Villafuerte, who entered into a collaboration agreement, allegedly mentioned that the change in the law was requested by Chinese companies in order to exclude national companies from the bidding processes. As a consequence of this alleged modification, there would have been an increase in the number of works awarded to Chinese companies or their affiliates in PVD. An example of this would be the Samegua project, awarded in 2020 to the Vial Samegua Consortium, which had the participation of a branch in Peru of the Chinese construction company Gezhouba. The collaborative witness also indicated that the works were allegedly directed to favor Chinese and national companies willing to pay a percentage of bribes. These revelations have sparked controversy and have called into question the transparency in the contracting processes during Vizcarra's administration. In response to these accusations, former President Vizcarra has denied knowledge of the mentioned law modification. However, it is worth noting that he signed the decree in question. On the other hand, former Economy Minister Carlos Oliva, who also signed the document, has denied any intention to favor a specific group of companies. The information provided by the collaborative witness aligns with the conclusions of the congressional commission investigating the bids won by Chinese companies during the administrations of Vizcarra and Pedro Castillo. This commission has pointed out that Vizcarra promoted laws that benefited Chinese construction companies in the selection processes. Amidst these accusations, the establishment of the Bank of China in Peru has been highlighted, endorsed by a decree that facilitated the authorization of Chinese banks in the country. This situation has raised suspicions about possible conflicts of interest and favoritism towards foreign companies. Meanwhile, national construction companies have expressed concern about competing at a disadvantage against Chinese companies, which allegedly have state support and facilities to participate in public tenders. This corruption scandal has sparked a strong debate in the public opinion regarding transparency and fairness in the State's contracting processes. The competent authorities will have to thoroughly investigate these accusations to clarify the truth and ensure that similar situations do not recur in the future.