Hunan Nonferrous geological exploration EPC is at loggerhead with 3 drilling subcontractors who claim the company is refusing to pay for their services rendered.
The allegations are that sometime in December 2022, Hunan Nonferrous signed a geological exploration EPC general contract with a big mine. In January 2023, Hunan Nonferrous signed drilling subcontracts with 3 subcontractors.
According to sources as of December 2023, the subcontractors have have completed their work.
However the sub contractors further claim that the mine owner paid US$7,2 million Hunan Nonferrous for the project, but Hunan Nonferrous only paid a total of US$1,265,000 to the subcontractors, accounting for only 20% of the amount payable for the drilling project.
The Three subcontractors keep asking for payment but Hunan keeps refusing to pay, claiming they dont get paid which is a lie, credible evidence showing they have received US$7.2 million.
The sources also revealed to this publication that the company has illegally externalized large amounts of funds through money laundering, more than US$3.4 million.
Commercial Crime Division is now engaged into an investigation against Hunan.
It is also being alleged that Hunan is also being investigated by Zimra and Immigration, for tax evasion US$1.2 million and failure to comply with immigration regulations.
