Allegations of 1,221 Split Contracts Over 3 Years Among 8 Companies

Muan-gun Government Office Exterior / Photo by Asia Economy

Muan-gun Government Office Exterior / Photo by Asia Economy

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[Asia Economy Honam Reporting Headquarters Reporter Seo Young-seo] Muan County in Jeonnam is facing criticism for repeatedly awarding contracts to specific companies.


According to Muan County and the local construction industry on the 21st, among about 35 companies eligible for private contracts for water and sewage facility construction projects ordered by the Water and Sewage Business Office over the past three years, it has been confirmed that private contracts were concentrated with certain specific companies.


Looking at the contract status of the Muan County Water and Sewage Business Office from 2018 to September this year, 1,221 projects were repeatedly awarded through private contracts to eight companies.


Examining the private contract status in the contract information system on the county’s website, over three years, company A was awarded 227 contracts, company B 224, company C 166, company D 149, company E 200, company F 143, company G 56, and company H 56, with one specific company designated per each town and township for private contracts.


In particular, it was revealed that one specific company signed as many as 52 private contracts worth about 479 million won from January to September. On the other hand, many local companies did not receive even a single private contract during the past nine months.


K (47), who operates a specialized construction business in the region, expressed frustration, saying, “In other regions, private contracts are distributed evenly among local construction companies as a convention to revitalize the local economy. Only Muan County is awarding contracts in such a concentrated manner.”


S (53), a resident familiar with local affairs, pointed out, “The repeated malpractice of private contracts is causing budget waste, corruption, and conflicts within the local community,” adding, “Muan County needs to increase transparency not only in selecting the budget scale for project areas but also in selecting project companies.”


Regarding this, an official from the Water and Sewage Business Office said, “Water repair companies need to be familiar with the pipelines and respond immediately when a failure occurs,” and added, “Also, designating an agency gives a sense of responsibility, which can reduce defects.”



He further stated, “However, concerning the criticism that specific companies are being designated for long-term contracts, we plan to amend related ordinances and take corrective measures by implementing three-year single-term contracts.”


This content was produced with the assistance of AI translation services.

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