BusinessBrief.com » Are the wrong companies getting stimulus funds?

Are the wrong companies getting stimulus funds?

January 7, 2010 by Fred Hosier
Posted in: In this week's e-newsletter, Legal & Compliance


With all the federal stimulus money being thrown around, you’d think it’d be a good time for companies to keep their noses clean.

But a recent investigation shows some construction companies have received millions of dollars in stimulus contracts even though they had serious pollution or workplace safety fines levied against them in recent years.

In Massachusetts, 13 companies were awarded nearly $54 million in contracts this year even though they have a history of EPA or OSHA fines, according to a report by the New England Center for Investigative Reporting at Boston University.

Example: Aggregate Industries Northeast failed to disclose more than $606,000 in environmental and safety penalties against it since 2006. Aggregate also pleaded guilty to providing inferior concrete to the Boston tunnel project and agreed to pay $50 million in penalties.

However, the company has been awarded two stimulus contracts worth $8.8 million for resurfacing roadways.

In a statement, the company claimed confusion about what did and didn’t have to be disclosed to qualify as a bidder for federal contracts.

General counsel for the state’s Highway Division has sent letters to several contractors, threatening to refer them to the state attorney general’s office for making false claims to the state on their bidding prequalification applications.

Highway Division administrator Luisa Paiewonsky said the agency doesn’t verify the accuracy of the information provided by contractors because of a lack of staff.

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One Response to “Are the wrong companies getting stimulus funds?”

  1. Tweets that mention Are the wrong companies getting stimulus funds? | BusinessBrief.com -- Topsy.com Says:

    [...] This post was mentioned on Twitter by Heidi Schwartz and HP&P Safety, Inc., Jude Tallman. Jude Tallman said: Are the wrong construction companies getting stimulus funds? Not that there really is much. http://ow.ly/WBP1 [...]

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