SH has refuted allegations that Han River Bus paid debts owed to subcontractors of Gadeok Heavy Industries. The company clarified that it did not directly pay subcontractors but settled costs for work already performed with Gadeok Heavy Industries, the contracting party.
On November 9, SH issued this statement in response to a report by News Tomato claiming that Han River Bus had covered payments that Gadeok Heavy Industries owed to its subcontractors. The report raised concerns about additional payments made despite efforts to avoid extra costs during contract modifications.
SH stated, "There is no fact that Han River Bus paid money to Gadeok Heavy Industries' subcontractors. We settled the actual costs for the work with Gadeok Heavy Industries."
According to SH, the decision to terminate the contract was made to prevent poor construction and excessive costs related to six vessels being built by Gadeok Heavy Industries. They emphasized that settling actual costs for work already completed was necessary before ending the contract.
In response to claims that additional costs arose after the contract changes, Han River Bus clarified that the payments made were for actual costs incurred before the contract modification, not new expenses.
Regarding reports that the claimed amounts were reduced by 50-60% during negotiations with subcontractors, SH explained that this was part of a cost verification process. They aimed to validate the claims and adjust amounts to prevent overpayments during the settlement of actual costs with Gadeok Heavy Industries.
* This article has been translated by AI.
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