Ecuador: Steelworks Xinlong accused of tax fraud and job insecurity, among 45 other companies

Author:, Published on: 8 January 2019

“The Customs authority investigates 45 companies for unusual activity” – 9th January 2019

Steelworks Xinlong is accused for tax fraud and job insecurity. They are being investigated for laundering activity and forged front men.  There are 317 ex-officials under investigation. Customs agency is investigating 45 cases of international commerce opperations with tracers that show “unusual behaviours”.  As a result of this activity, the company Steelworks Xinlong was identified, located in the district of Milagro.  According to authorities, there are indices of tax and customs forged front men linked to officials of the previous regime.  There was alleged laundering activities, tax and customs fraud, as well as human rights violations and job insecurity, for which the company was closed.  The sub-secretary for Political Action of the Presidency, Iván Granda, said that there are also 500 cases that indicate criminal responsibility, in which he points out the 317 ex-officials from the previous regime, being investigated by the Public Prosecutor.  Although the company Xinlong denied everything, the director of the National Customs Service of Ecuador, María Alejandra Muñoz, explained that this company imported machines and other elements for $30 million and until yesterday had not presented documents of proof.  They have only declared imports of $413,000. Labour Minister, Raúl Ledesma manifested that the company had 24 employees registered, but on inspection more than 50 were found, amongst them Venezuelans and Asians with no legal documents to work in the country.  Also, without official social security (IESS) affiliation.  Ledesma highlighted that the workers received 15 dollars for a day´s work in cash. 

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