"Detroit Metro contractors probed"

Saturday, December 29, 2007

Metro contractors probed
Problems found in program for disadvantaged
BY MARGARITA BAUZA
The Detroit (MI) Free Press


The Wayne County Airport Authority said Friday it is launching a widespread
investigation of contractors working on Metro Airport construction projects
and under concessions contracts.

Airport spokesman Michael Conway said only that the airport authority was
advised by attorneys not to comment further than a statement it issued
Friday.

According to that statement, irregularities were discovered concerning one
of its Disadvantaged Business Enterprise contractors, also known as DBEs.
Federal grants require a certain percentage of work be awarded to
disadvantaged and minority contractors to qualify for grant money.

None of the irregularities discovered relates to airport safety or security,
the statement emphasized.

Bernard Parker, a Wayne County commissioner and Wayne County Airport
Authority board member who regularly scrutinizes airport contracts at
meetings, said Friday that the irregularities had to do with work that was
not being performed as expected.

"My understanding is that there were some accusations made about fraudulent
activities -- contractors signing off on work that was not being done,"
Parker said. The irregularities concern work performed at the North
Terminal, Parker added.

He also said the airport authority discovered the irregularities and then
sent reports to federal authorities overseeing grant money, and he confirmed
that the airport authority is conducting its own investigation.

Federal Aviation Administration spokesman Tony Molinaro said Friday that the
investigation is not the FAA's. The Department of Transportation also
provides grants for work at the airport. DOT officials did not return calls
for comment.

According to the Friday statement: "The airport will continue to investigate
work to determine that airport practices are in compliance with its policies
and procedures, including the business practices of contractors and vendors.
The authority reaffirms its belief that the overwhelming majority of its
contractors, including both DBE and non-DBE contractors, conduct their
businesses the right way and work hard to be important economic and social
partners in their communities.

"The authority's role has been and continues to be building capacity for
small, minority and women-owned businesses, as well as diligently protecting
its DBE program against those who would undermine the important social and
economic principles on which it stands."

The Chicago offices of Perkins Coie and Mayer Brown LLP, in association with
the authority's outside counsel, Bodman LLP, are leading the airport's
investigation.

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