Displaying items by tag: crime

Brazil: The Administrative Council for Economic Defence (CADE) has convicted two individuals for operating a cartel in the Brazilian cement sector and ordered them to pay fines of US$1.75m.

The investigation began in 2016, stemming from a wider probe into a Brazilian cement sector cartel. The individuals exchanged emails and attended meetings to allocate market share and manipulate public procurement prices to restrict competition and entry of new competitors in the market.

Taiwan: The Ministry of Finance has issued preliminary findings in its anti-dumping investigation into Vietnamese cement and clinker, confirming that Vietnamese firms engaged in dumping. Six out of 21 investigated producers had dumping margins of 16 - 20%, while others faced a margin as high as 24%. Long Son Cement recorded the lowest margin at below 17%, the only producer below the level initially alleged by the Taiwan Cement Manufacturers Association.

The Ministry of Economic Affairs has not imposed provisional duties due to lack of evidence of ongoing damage to domestic producers. The investigation began in August 2024 and will now continue its final phase.

Kenya: The government has warned cement producers about buying materials from unlicensed sources. Cabinet Secretary Hassan Ali Joho has berated cement producers for purchasing minerals from unauthorised sellers, arguing that this practice enables the operations of illegal miners who exploit the country’s natural resources.

During a meeting with cement producers and representatives from the Kenya Association of Manufacturers and Kenya Chamber of Mines, Joho said "We need your support in fighting against illegal mining operations, but sadly some of you provide markets for minerals extracted illegally by faceless entities that are not paying taxes, royalties and are giving nothing to communities for those minerals. This must stop.”

In the past three years, the government has closed 3000 illicit mines that were operating without licenses. The Cabinet Secretary noted that gypsum was a heavily exploited material by the illegal miners, who use it as an ingredient in cement.

Joho added “You have been buying and using gypsum in cement manufacturing, yet there is no record of anyone licensed to mine gypsum in Kenya. There are no records on production, payment of taxes and royalties or community programs undertaken by any gypsum dealer because they are doing it illegally.”

Nepal: The Public Accounts Committee of the House of Representatives has received a complaint alleging that cement producers have created artificial shortages in order to raise prices, according to Republica newspaper. A meeting has been scheduled to discuss the complaint.

Liberia: The Daily Observer has reported smuggling of essential commodities, including cement, across the Ganta Border into Guinea, potentially leading to shortages. Over 1000 bags of cement are allegedly transported daily from the Ganta market into Guinea, leading to an increase in prices.

Niger: The Nigerien government has closed nine commercial establishments in Niamey for 15 days for failing to comply with new cement price caps set in October 2024, with any further infringements leading to a five-year administrative closure. The decision follows traders' continued sale of cement above the capped prices despite measures to lower the cost of living, according to the Journal du Niger newspaper.

Minister of Trade and Industry Asman Seydou said “We do not tolerate any breach of the law. Nigerien consumers have the right to benefit from the prices set by the government, and we will do everything in our power to ensure that they are respected.”

The Ministry of Commerce has introduced a reinforced control system, including a hotline for reporting violations. The government has also granted tax exemptions to cement importers and producers to support domestic production.

Zimbabwe: Villagers in Hurungwe District are protesting against a cement and power plant project by WHI-ZIM Construction Material Investments, alleging illegal land seizures, lack of compensation and environmental risks. WHI-ZIM, a joint venture between Lebanmon Investments and West International Holding, has pledged US$1bn for the project in Mashonaland West, promising 5000 jobs and local infrastructure upgrades. However, more than 80 families face displacement without clear relocation or compensation plans, according to Zim Live news. Residents accuse the company of forcibly depositing materials on communal land without legal permits. Chief Chanetsa of Hurungwe endorsed the project on 135 hectares, citing community benefits, including schools, clinics, boreholes and a 45km road.

He said “If there is any field affected within these 135 hectares, we have agreed with the company that it shall fully compensate the affected area.”

Environmentalists and villagers have warned of risks to Magunje Dam, the villagers’ water source located 1.4km from the plant. They allege irregularities in the Environmental Impact Assessment (EIA), which mandates compensation and relocation before work begins.

Residents claim WHI-ZIM ignored EIA conditions and began fencing communal land in July 2024.

A community activist said “The corruption here is blatant. People are being forced off their land while officials look the other way.”

Kenya: A police operation in Athi River led to the arrest of five suspects and the impoundment of three trucks involved in a cement siphoning racket. Officers from the Kenya Police Service recovered over 660 bags of cement that allegedly weighed 4kg less than advertised, at 46kg each, according to The Star Kenya. The operation was initiated after a customer had complained about receiving underweight cement bags. One of the suspects said that he was paid US$3.86/day to siphon 2 - 6kg of cement from each 50kg bag, and that each truck carrying 220 bags of cement was siphoned by three people at a time, usually during the night.

Zimbabwe: Bulawayo deputy mayor Edwin Ndlovu and Finance and Development Committee chairperson Councillor Mpumelelo Moyo have been arrested by the Zimbabwe Anti-Corruption Commission (ZACC) for allegedly demanding a US$20,000 bribe from Labenmon Investments. The officials are accused of soliciting the bribe from the China-based investors in exchange for approving 5.6 hectares of land for a cement plant. The initial application for 10 hectares was denied by the Bulawayo City Council. The two were scheduled to appear in court on 16 November 2024.

A statement from the ZACC said "The circumstances are that sometime in November 2023, Tsitsi Mapfumo from Labenmon Investments made an application, without success, for 10 hectares of land to the Bulawayo City Council for a cement mixing plant. Labenmon Investments resubmitted the application in April 2024 and was offered 5.6 hectares. After Labenmon Investments received an offer letter, the accused persons allegedly approached Mapfumo demanding a reward of US$20,000 cash on behalf of other 20 Bulawayo City Council councillors for facilitating the approval.”

Mexico: Cruz Azul, owned by Cooperativa Cruz Azul, has reportedly incurred losses exceeding US$1.26bn due to the control of its cement and concrete plant in Tula, Hidalgo by a dissident group over the past four years, according to Noticias Financieras news. The company has expanded production capacity in four other plants and announced new investments in Campeche to mitigate production issues at the Tula plant. Legal director Rafael Anzures Ortiz said that the group is holding the facilities hostage, reportedly affecting over 4000 jobs. He said that the plant has the capacity to produce 35-40% of the company's total cement volumes, but no cement has been produced in the last four years, despite the salaries of more than 1000 workers at the plant being guaranteed.

Rafael Anzures Ortiz said "We have been very emphatic in requesting the state government to go to court and to seek compliance with the law so that this plant can start operating again and this entire economy can be reactivated."