Britain is not the only place where Balfour Beatty corporate executives have decided to boost their profits at the expense of ordinary people’s misery and death. Several of the firm’s international projects have aroused controversy in the past.
- Building of the Pergau Dam
The Pergau Dam project drew huge criticisms in the mid-90′s. The British government donated over £234 million to build the huge dam near the Thai border of Malaysia through the Overseas Development Administration (a body which gives aid from the British government). Douglas Hurd, foreign secretary at the time, approved the deal, in spite of protests that the dam would not benefit the Malaysian people economically, and that it would be an environmental disaster.
Less than a year later, the Malaysian state bought over £1 billion worth of arms from British companies in what was clearly a ‘you scratch my back I’ll scratch yours’ deal. Balfour was one of the companies who built the dam, taking in funds from the British government which were later declared to have been handed out illegally. Balfour was more than happy to take taxpayers’ cash to build a dam which was designed to entice a corrupt and oppressive government into buying weapons from British arms dealers.
- Farmers protest against Tata car factory
Balfour have also recently teamed up with Tata Projects to work together in Asia and Africa. Tata projects is owned by the Tata Group, an Indian-based multinational whose past record is potentially even worse than Balfour’s! Tata and its subsidiaries have produced automobiles and hardware for the Burmese military dictatorship, snatched publicly-owned forests in Southern India and taken part in construction projects which could lead to major environmental damages.
As well as working alongside corrupt governments and private companies who plunder nations, Balfour Beatty’s business practices have been attacked for their illegality. In 2008 they were fined over £2 million for their dodgy dealings in Egypt, where large amounts of money went missing through ‘payment irregularities’ (which many suspect were used to bribe Mubarak’s officials).
This is nothing new for the firm, whose US offices were raided in the late 90′s by the FBI. Balfour, along with two other companies, were found to be defrauding and overcharging another company, Amtrak. In 1996 they were banned for bidding for contracts in Singapore due to corporate corruption, but have since wormed their way back into the country.
But despite being repeatedly accused of (and found guilty of) massive corruption, this has not hurt the company. When Labour started selling off public services through PFI schemes, Balfour was one of the main benefactors. A huge amount of money within the company has come from directly from taxpayers, thanks to Labour (and now the Tories) deciding that a company that cuts corners at every opportunity can be trusted.
Jargon Buster: PFI: ‘Private Finance Initiative’- A contract where the British government pays a firm to run a project designed for public use. These contracts usually end up costing more than if the government had done it itself.
In the first half of 2011, Balfour Beatty made profits of £136 million. Ian Tyler, the Chief Executive of the company took home a whopping £1 million last year- we don’t know how he stops himself giggling every time he says that it’s the electricians who need to take a pay cut.
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