The Council on Ethics recommends that the Chinese company China State Construction Engineering Corp Ltd (CSCEC) be excluded from the Norwegian Government Pension Fund Global due to an unacceptable risk that the company is contributing to or is itself responsible for gross corruption.
CSCEC’s primary business activities include the construction of all types of public buildings, as well as infrastructure such as railway lines, motorways, bridges, ports, etc. The Council’s inquiries have shown that CSCEC may be linked to allegations or suspicions of corruption in a number of countries in the period 2004–2021. CSCEC operates in a business sector and in many countries in which the risk of corruption is high. Moreover, China’s enforcement of corruption abroad has been ranked in the lowest category by Transparency International. The Council has therefore contacted CSCEC and asked it a number of questions concerning the company’s measures to prevent, detect and react to corruption, but the company has failed to reply to the Council’s queries. On this basis, and in light of the cases described, the Council considers that the risk of gross corruption linked to CSCEC’s operations is unacceptable.
Please find the Council’s recommendation here.
The Council on Ethics issued its recommendation on 25 April 2024. Norges Bank announced its decision to exclude the company on 5 September 2024.