Glass Lewis ESG Controversy Alert: China Communications Construction

MT Newswires Live

05-30

Glass Lewis issued a controversy alert on Thursday for China Communications Construction (HKG:1800) shareholders ahead of the company's annual general meeting on June 16.

The alert relates to the company's value-added tax (VAT) avoidance case in Kenya, which involved the transfer of funds through shell companies to USD accounts, including those in China.

The Tax Appeals Tribunal rejected the company's appeal for a tax assessment of about 1 billion shillings, saying the avoidance scheme was deliberate.

The alert's rationale relates to relevant media coverage and a unique ESG issue and falls under ethics and oversight issue.

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