Gyeonggi-do Pays 33.98 Million KRW to Whistleblowers Reporting Construction Companies Inflating Costs

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has uncovered excessive reporting of construction costs by subcontractors who received contracts for construction projects commissioned by the province through public interest whistleblowing, and has requested a police investigation into these companies on charges of fraud. It has been decided to pay a reward of 14.27 million KRW to the whistleblower.

On the 8th, the province held the 3rd Gyeonggi Province Public Interest Whistleblowing Support Committee meeting of 2022 and announced on the 22nd that it would pay a total of 33.98 million KRW, including a reward of 14.27 million KRW for one case of excessive construction cost reporting and 19.71 million KRW in commendations for 12 cases reported by citizens.

According to the reported cases, Construction Company A, which received the Gyeonggi Province project, subcontracted part of the work to Construction Company B, and Construction Company B was found to have excessively reported 442 tons of cement, receiving progress payments (amounts paid based on the progress of construction work).

The province investigated the reports submitted anonymously through the 'Gyeonggi Province Public Interest Whistleblowing Hotline' and confirmed these facts, recovering 47.59 million KRW in cement material costs.

In particular, the province suspects illegal re-subcontracting and embezzlement of construction costs by Construction Company B, and has requested a police investigation along with related evidence. Currently, employees of Construction Company B are indicted on charges of violating the Framework Act on the Construction Industry and fraud.

Jang Seong-geun, chairman of the Gyeonggi Province Public Interest Whistleblowing Support Committee, evaluated the case, saying, "This was reported by a construction company employee who showed courage, and the credibility of the evidence is considerable," adding, "It is judged to have greatly contributed to establishing a fair construction culture and preventing accidents caused by poor construction."

The province pays rewards when internal whistleblowers’ reports lead to the recovery or increase of provincial financial revenue. The reward is 30% of the recovered or increased financial revenue without an upper limit. The province plans to pay the internal whistleblower 14.27 million KRW, which is 30% of the recovered construction cost amount of 47.59 million KRW.

Additionally, the province decided to pay commendations totaling 19.71 million KRW for 9 reports related to environmental pollution and 3 reports concerning threats to residents’ safety.

Whistleblower C reported a site where construction waste was stored illegally on state-owned land, along with photos. This report led to the detection of violations of the 'Act on the Promotion of Recycling of Construction Waste,' resulting in a fine of 25 million KRW and a penalty of 3 million KRW. The committee plans to pay a commendation of 8.1 million KRW to the whistleblower for contributing to public interest by preventing soil contamination.

Whistleblower D reported that a hazardous materials manufacturer used unauthorized foam extinguishing agents (substances that extinguish fire by generating foam to block air) during an extension construction. D will receive a commendation of 3.92 million KRW for preventing fire and casualties at the hazardous materials manufacturing facility.

Gyeonggi Province’s public interest whistleblowing refers to 'public interest reports' that report violations of 471 laws related to the province’s jurisdiction in areas such as public health and safety, environment, consumer interests, and fair competition; 'corruption reports' that report corruption by Gyeonggi Province public officials and public institutions; and 'reports of violations of the Gyeonggi Province Public Officials’ Code of Conduct.'

Those wishing to report public interest violations can do so through the dedicated reporting channel, the 'Gyeonggi Province Public Interest Whistleblowing Hotline.' If the reported public interest infringement is confirmed and administrative or judicial actions are taken, rewards and commendations are paid to the whistleblowers.

Considering that general reporters may have difficulty reporting because they are unaware of specific reportable acts, the province has produced casebooks related to environmental and safety fields closely connected to residents’ daily lives.

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