Labor | USJ campus subcontractor claims tens of millions in unpaid arrears

A subcontractor working on an ongoing construction project at the University of Saint Joseph’s (USJ) new Ilha Verde campus has accused the main contractor, Hsin Chong Construction Group, of owing the company “tens of millions [of patacas]” after their agreement was terminated last month. The subcontractor, Iao Sang Construction Engineering, is also accusing Hsin Chong of unlawfully continuing to use their equipment and workers since the deal’s termination.
According to a representative of Iao Sang Construction Engineering, “Our contract was worth 450 million patacas [and] we have completed around 60 to 70 percent of the work. So it should be more than 300 million patacas [that is owed to us]. [However], since the beginning [of our contract] Hsin Chong has paid us around 70 million patacas in cash. They still owe us several tens of millions.”
USJ explained that the deal with Iao Sang, was terminated after another company from mainland China, acting as a sub-subcontractor, made “serious claims” about the conduct of Iao Sang. The allegations came as workers organized protests at the site in June over unpaid wages.
Iao Sang said that in addition to the outstanding fees, Hsin Chong has effectively taken over the construction site since the termination of the agreement and is unlawfully using their equipment and workers.
The university issued a statement in response to the dispute. USJ reiterated that public funds for the project have never been and are not at risk as “the contract with Hsin Chong is particularly strict in this matter.”
USJ also said that “over the past few months, the construction has not stopped and, according to information received [by November 4], there are currently 400 people working on the site.”
“The project has suffered delays, but present estimates by our technical advisors continue to indicate that the College and the University will be able to use the new campus for the 2016-2017 academic year,” the university added.
A total of MOP520 million has been budgeted for the new campus, with about half of that sum being provided by the Macau Foundation and the Education and Youth Affairs Bureau. The first stone of the new campus was laid in 2009, and the inauguration was planned for 2011. However, the project has faced numerous setbacks and the opening date has been repeatedly pushed back.
This week the Macau Foundation granted a total of MOP101 million to the Catholic Foundation for Higher Education. A portion of the grant is to be devoted to the second-phase construction of the USJ Ilha Verde campus.  Staff reporter