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Baitball Blogger

(46,786 posts) Mon Jun 4, 2012, 12:51 AM Jun 2012

Governments may study if minority-contract program is working

For decades, Orlando, Orange County and three other metro-area agencies have been spreading around tens of millions of tax and toll dollars to small, local companies owned by minorities and women.

Now, the city, county and three other organizations may come together to study if they have met their goals in setting aside money on what is known as W/MBE programs.

The inquiry, which could take more than a year to complete, could determine if the long-standing policy continues as is or, much less likely, should be abandoned.

"I think the need is still there and is still great. Absolutely," said Kevin Walsh, Orlando's minority enterprise business official.

http://articles.orlandosentinel.com/2012-06-03/business/os-cfb-cover-minority-contracts-20120530_1_amway-center-minority-small-businesses

11 replies

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Governments may study if minority-contract program is working (Original Post) Baitball Blogger Jun 2012 OP

I bet, what they might find, though not rampant, is corporations that put a minority in a postion Baitball Blogger Jun 2012 #1

CA code mandates 51% ownership by a minority, not just a msanthrope Jun 2012 #2

You think this doesn't happen? XemaSab Jun 2012 #5

That would be a GREAT idea! Baitball Blogger Jun 2012 #6

Ah--Orange county, Florida....well--it's the same--51% ownership required. msanthrope Jun 2012 #8

Thanks! Appreciate it. Baitball Blogger Jun 2012 #9

Such as...? Number23 Jun 2012 #3

just google woman-owned or minority-owned business + fraud. Plenty of examples. HiPointDem Jun 2012 #4

I've seen sell-outs in political positions. Why not corporate where there is little scrutiny? Baitball Blogger Jun 2012 #7

Just curious - are disabled persons included in these programs? I know employees get a bonus for jwirr Jun 2012 #10

Hopefully someone steps in to answer your question. Baitball Blogger Jun 2012 #11

Baitball Blogger

(46,786 posts)

1. I bet, what they might find, though not rampant, is corporations that put a minority in a postion

Reply to Baitball Blogger (Original post)

Mon Jun 4, 2012, 12:54 AM

Jun 2012

of leadership as a figurehead.

It sickens me when this happens. The true potential effect of programs that are suppose to help minorities, never really get a chance to work when someone is gaming the system.

msanthrope

(37,549 posts)

2. CA code mandates 51% ownership by a minority, not just a

Reply to Baitball Blogger (Reply #1)

Mon Jun 4, 2012, 01:02 AM

Jun 2012

'figurehead position.' See, Public Contract Code, Section 2051(e)(1) et. seq.

Your concern is noted.

XemaSab

(60,212 posts)

5. You think this doesn't happen?

Reply to msanthrope (Reply #2)

Mon Jun 4, 2012, 05:51 AM

Jun 2012

The company my mom works for is 51% owned by this Asian woman who does nothing and her husband who runs the place.

It may not happen all the time, but it totally happens.

Baitball Blogger

(46,786 posts)

6. That would be a GREAT idea!

Reply to msanthrope (Reply #2)

Mon Jun 4, 2012, 10:12 AM

Jun 2012

I hope they have that in Florida as well. My info is at least ten years old.

msanthrope

(37,549 posts)

8. Ah--Orange county, Florida....well--it's the same--51% ownership required.

Reply to Baitball Blogger (Reply #6)

Mon Jun 4, 2012, 12:00 PM

Jun 2012

http://www.dms.myflorida.com/other_programs/office_of_supplier_diversity_osd/certification/eligibility_requirements

Baitball Blogger

(46,786 posts)

9. Thanks! Appreciate it.

Reply to msanthrope (Reply #8)

Mon Jun 4, 2012, 12:07 PM

Jun 2012

Number23

(24,544 posts)

3. Such as...?

Reply to Baitball Blogger (Reply #1)

Mon Jun 4, 2012, 05:37 AM

Jun 2012

corporations that put a minority in a postion of leadership as a figurehead.

HiPointDem

(20,729 posts)

4. just google woman-owned or minority-owned business + fraud. Plenty of examples.

Reply to Number23 (Reply #3)

Mon Jun 4, 2012, 05:43 AM

Jun 2012

http://www.suntimes.com/news/crime/10640900-418/chicago-clout-contractor-targeted-in-major-construction-fraud-case.html

McHugh Construction — a 115-year-old contracting giant with billions of dollars in government and private business — is at the heart of a federal investigation into minority- and women-owned business fraud on four of the biggest government construction projects in Chicago in recent years, a federal criminal complaint unsealed Tuesday revealed.

...But Perino’s ("woman-owned" companies didn’t do any work, instead acting as a “pass-through” so McHugh could “avoid requirements intended to benefit women- or minority-owned and disadvantaged business enterprises,” according to a statement from U.S. Attorney Patrick Fitzgerald’s office.

In this case, the woman is being charged with a crime & the corporation (McHugh) who hired her as fake subcontractor gets off scot-free.

wedtech scandal

The Wedtech Scandal was the name of an American political scandal that came to light in the late 1980s involving the Wedtech Corporation...As a major employer in a depressed part of New York City Wedtech enjoyed a strong local reputation, and was even praised by then U.S. President Ronald Reagan for the jobs it provided for those who might otherwise be forced onto welfare rolls.

But Wedtech had won many of its defense contracts under a Small Business Administration program which allowed minority-owned businesses to be awarded no-bid contracts, despite the fact that Fred Neuberger, not a member of any minority, owned a majority of the company's stock, thus disqualifying Wedtech as a minority-owned business. To keep Neuberger's controlling ownership secret, the company committed fraud, forging papers that claimed Mariotta was still the primary owner of the company...

By the final years of Reagan's second term, Wedtech's crimes had become too numerous to hide. An independent counsel was appointed by Congress, which later charged Attorney General Edwin Meese with complicity in the scandal (he had worked as a lobbyist for the company prior to his appointment to Justice). While Meese was acquitted of any wrongdoing, he resigned in 1988 when the independent counsel delivered the report on Wedtech. In all, about 20 state, local, and federal government officials were convicted of crimes in connection to the scandal.

http://en.wikipedia.org/wiki/Wedtech_scandal

Construction giant Skanska USA to pay $20 million for using fake minority-owned firm to get contract

A major contractor paid a $19.6 million fine but dodged criminal charges on Thursday in a minority contracting scam prosecutors say is pervasive at construction sites across the city.

Skanska USA agreed to pay federal and state agencies for its role in a 15-year fraud scheme involving Metropolitan Transportation Authority and Port Authority contracts at the World Trade Center site and Kennedy Airport.

Prosecutors say Skanska used a minority-owned front company, Environmental Energy Associates, to win lucrative government jobs that require minority participation.
http://articles.nydailynews.com/2011-03-31/local/29386476_1_skanska-usa-legitimate-minority-firms-minority-participation