Region Stockholm has paid more than $95 million (1 billion SEK) to the Chinese construction firm CRTG for function on the recent Sickla subway station, despite terminating the contract over critical safety failures and suspected human exploitation. The region pulled the plug on the project after repeated warnings, but the financial payout already exceeds the original contract value although the station remains unfinished.
Region Stockholm paid over $95 million (1 billion SEK) for unfinished work
The original 2021 agreement with CRTG was valued at approximately $88 million (927 million SEK). A financial summary produced by the region reveals that payments have since climbed past the billion-kronor mark. This happened despite the fact that the project is stalled and the region estimates CRTG would have needed at least another year to complete the job.
Emma Sahlman, press officer for Region Stockholm, defended the payments as being in line with current regulations. She attributed the cost overrun to index adjustments for inflation and additional work that emerged after the contract was signed.
The region isn’t letting the contractor walk away without a fight. Officials are now demanding $6.2 million (65 million SEK) in delay fines. They also intend to seek compensation for the costs associated with tearing up the contract, though the final sum for those damages is still under analysis.
Why the Work Environment Authority flagged the site as a death trap
Inspectors from the Work Environment Authority uncovered a series of hazards that posed an immediate threat to life. Katarina Baksa, who led the April inspection, reported seeing scaffolding that wasn’t secured to the ground and workers operating at heights among sharp iron pins.
Some workers faced the risk of falling directly into open wells. The chaos on-site was compounded by a fragmented management structure. Baksa noted that the “Bas-U”—the person legally responsible for site safety—had started the job only two days before the inspectors arrived.
Per Ling-Vannerus, the region’s official in charge, told Arbetet that the situation “went to hell” toward the complete. The region issued twelve separate stop-work orders before finally firing the company. In several instances, CRTG ignored these orders and resumed work before the safety stops were officially lifted.
Unpaid wages and 12-hour shifts triggered exploitation probes
Beyond the physical dangers, CRTG is under investigation for suspected human exploitation. Reports indicate that several Chinese workers were forced into 12-hour shifts, seven days a week, without receiving overtime pay.
The company allegedly owes workers roughly $1.4 million (15 million SEK) in unpaid wages. Baksa warned that the use of long chains of subcontractors often makes it impossible to track who is doing what, creating a environment where safety and labor laws are easily bypassed.
Safety failures mirror a previous scandal in Eskilstuna
This isn’t the first time CRTG has been linked to dangerous working conditions in Sweden. Johan Larsson-Hytte, an inspector with the Work Environment Authority, pointed out that the failures at the Sickla site are strikingly similar to those found at Senior Material, a criticized factory in Eskilstuna where CRTG was responsible for the work environment.
The recurring nature of these breaches suggests a systemic failure in the company’s approach to Swedish safety standards. Region Stockholm is now searching for new contractors to seize over the Sickla station, which is tentatively expected to open in 2030.
Will the Sickla station opening be delayed?
The station is expected to open in 2030, but the region has not yet confirmed if the termination of CRTG’s contract will push that date back.
How much is the region trying to recover from CRTG?
The region is demanding $6.2 million (65 million SEK) in delay fines, plus an undetermined amount of compensation for costs related to the broken contract.
What specific labor violations are being investigated?
CRTG is being investigated for suspected human exploitation involving Chinese workers who worked 12-hour days, seven days a week, with approximately $1.4 million (15 million SEK) in unpaid overtime.
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