Big Dig payment for fraud at $50m
But company can still do business
By Sean P. Murphy, Globe Staff | July 28, 2007
Aggregate Industries NE Inc., which pleaded guilty to fraud for supplying 5,700 truckloads of substandard concrete on the Big Dig, will pay $50 million to settle the case, but it can still do business with the state and federal governments.
In a key provision of the agreement announced yesterday between Aggregate and state and federal prosecutors, the region's largest concrete supplier avoided debarment, an administrative sanction that would have prevented the company from bidding on federal or state contracts, which make up most of the company's business.
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While the case against the company is finished, criminal charges remain against six of its former managers. In a 135-count indictment announced last year, the managers were accused of repeatedly passing off over-age concrete as fresh and of falsifying documents to cover the scheme.
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In an interview yesterday, Daniel Johnston, a fourth whistle-blower who filed suit in 2006 and will receive $75,000, said he was a concrete inspector for Aggregate on the Big Dig when he began to suspect that too-old concrete was being recycled and delivered as new.
When he questioned the practice, he said, Aggregate personnel told him, "This is how business is done." He said later that he was warned his questions could cause him to wind up "in a hole."http://www.boston.com/news/local/massachusetts/articles...3 senators want Big Dig manager barred
By Andrea Estes, Globe Staff | July 12, 2007
http://www.boston.com/news/traffic/bigdig/articles/2007... /
Three state senators renewed their call yesterday for the governor to disqualify Big Dig manager Bechtel/Parsons Brinckerhoff from receiving any more contracts from the state.Senators Steven Baddour, Marc Pacheco, and Bruce Tarr said the report released Tuesday by the National Transportation Safety Board left no doubt that the company failed in its responsibility to assure the safety of Massachusetts motorists.
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Baddour, Democrat of Methuen and cochairman of the Joint Committee on Transportation, told the Globe that after the tunnel collapse July 10, 2006, he looked at the ceiling himself.
"You could see where the bolts had slipped," he said. "You didn't have to be an engineer. You didn't have to have an advanced degree. If they had done the most basic, cursory inspections, they would have shut down the tunnels. That's inexcusable neglect."
Iraq: Follow the Money
`Let's Hope They're Not Waiting For The Americans To Fix It'
By Joy Gordon*
Le Monde diplomatique
April 2007
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Hundreds of irregularities
All this has been documented by auditors, including those from US agencies. The DFI was audited by outside accountants KPMG and later Ernst & Young, hired by the UN international advisory monitoring board. Its report from December 2004 noted that there were "hundreds of irregularities" in the CPA's contracting process, including missing contract information and payment for contracts that had not been supervised.
A typical KPMG audit for 2004 found 37 cases involving $185m of contracts where files could not be located; there were 111 cases with no documentation for services performed under the contracts.7 Another audit found that the Halliburton subsidiary firm, Kellogg, Brown & Root, had "significantly and systematically" violated US federal contracting rules by providing false information about its costs.8 Despite this, KBR's contracts were repeatedly expanded and renewed.
As reconstruction projects were completed, stories emerged of terrible incompetence and neglect. The US awarded a contract to renovate Al-Hillah General Hospital, south of Baghdad, to include the installation of four new elevators. The project officer signed a certificate of completion, authorising full, immediate payment even though the project was not completed. Three months later an elevator crashed, killing three people. The contractor had never installed new elevators, only badly renovated the existing ones.9
In another case, the contractor responsible for construction at Al-Sumelat water plant had done such incompetent work that the plant could not produce drinkable water: the pipeline was installed in three unusable segments, none of them connected to the main. 10There have been dozens more incidents involving shoddy work, goods that were never delivered or equipment that never worked.
About the Author: Joy Gordon is a professor of philosophy at Fairfield University, Connecticut