The World Bank on Jan. 14 announced the debarment of seven contractors and one individual for engaging in bid rigging on a major bank-financed roads project in the Philippines. The World Bank’s Integrity Vice Presidency (INT) found that local and international firms colluded on contracts under phase one of the Philippines National Roads Improvement and Management Program (NRIMP 1). The World Bank’s Sanctions Board agreed the firms engaged in a bid-rigging scheme. The contractors debarred include China Road and Bridge Corp. (eight years), China Geo-Engineering Corp. (five years), and China State Construction Engineering Corp. (six years), all based in Beijing;
The World Bank announced January 14 the debarment of seven firms and one individual for engaging in collusive practices on major Bank-financed roads projects in the Philippines. The World Bank’s Integrity Vice Presidency (INT) uncovered evidence of a major cartel involving local and international firms bidding on contracts under phase one of the Philippines National Roads Improvement and Management Program, known as NRIMP 1. World Bank stopped an estimated $33 million in Bank funds from being awarded to the firms. The World Bank’s Sanctions Board concluded that the entities had participated in a collusive bid-rigging scheme. The contractors debarred include
Stone & Webster Construction Inc. will pay $6.2 million to the federal government to settle a multi-year investigation into alleged improper recordkeeping of injuries and site safety under a $10-billion long-term contract with the Tennessee Valley Authority for modifications and maintenance work at nuclear plant sites in Tennessee and Alabama. The U.S. Justice Dept. announced the settlement Jan. 22 with Stone & Webster, based in Stoughton, Mass. and a subsidiary of Baton Rouge, La.-based The Shaw Group since 2000. The settlement also requires Stone & Webster to enter into a first-of-its kind comprehensive two-year monitoring agreement with TVA's Office of
Ten current construction supervisors and one retired supervisor at Consolidated Edison, the utility serving Manhattan and its northern suburbs, were arrested on Jan. 14 for soliciting and accepting more than $1 million in kickbacks since 2004 from a construction contractor. Prosecutors declined to identify the contractor because it is cooperating in the probe and will plead guilty, officials said. Work involved in the scheme included cleanup and repair of an underground steam pipe that exploded in Manhattan in July 2007, killing one pedestrian. U.S. Attorney Benton J. Campbell says the firm’s president and co-owner, also not identified, paid bribes in
Ten current construction supervisors and one recent retired official of Consolidated Edison, the utility serving Manhattan and its northern suburbs, were arrested Jan. 14 for soliciting and accepting more than $1 million in kickbacks from a construction contractor since 2004. Work involved in the bribery scheme also included cleanup and repair of an underground steam pipe that exploded in Manhattan in July 2007, killing one pedestrian, injuring others and causing millions of dollars in damage. Photo: AP Repair of steampipe that exploded in Manhattan in 2007 was among work that bribe contractor handled. Officials in the office of U.S. Attorney
Gov. Bill Richardson (D-N.M.) has withdrawn from his nomination as commerce secretary in President-elect Barack Obama’s Cabinet. In a Jan. 5 news conference, Richardson stated that an ongoing federal grand jury investigation into a state contract related to Governor Richardson’s Investment Partnership (GRIP), won by Beverly Hills, Calif.-based CDR Financial Products, “would have forced an untenable delay in the confirmation process.” The investigation centers around a $1.48-million consulting contract CDR won in 2004 with the New Mexico Finance Authority, a state agency that finances infrastructure projects. CDR was part of a team of financial services firms that advised NMFA on
The master rigger of a 200-ft-high tower crane that collapsed at a midtown Manhattan construction site last March, killing seven workers and civilians, was indicted Jan. 5 on multiple charges of manslaughter, criminally negligent homicide, assault and reckless endangerment. Manhattan District Attorney Robert Morgenthau also said that rigger William Rapetti, 48 and his firm Rapetti Rigging Services Inc., Massapequa, N.Y., failed to file tax returns. Photo: Debra K. Rubin/ENR District Attorney Robert Morgenthau announces indictment of tower crane rigger while Commissioner Rose Gill Hearn (left) noted stricter city crane safety rules. Following his arraignment, also on Jan. 5, Rapetti faces
Operation Board Games, a widening, five-year probe of pay-to-play corruption in Illinois state government, culminated on Dec. 9 with the arrests of Gov. Rod Blagojevich (D) and John Harris, his chief of staff, for conspiring to commit fraud and soliciting bribes. Among other things, Blagojevich sought contributions from an unnamed local concrete firm executive and active member of Skokie-Ill.-based American Concrete Pavement Association in exchange for contracts under a $1.8-billion program to upgrade the state’s toll roads, U.S. attorneys say. If the funds were raised to his liking by the end of the year, the governor would have increased the
Birmingham Mayor Larry Langford and two associates were arrested on Dec. 2 and charged with 101 federal counts including bribery and money laundering in connection with bond transactions and swap agreements related to bonds for a $3-billion county sewer project and other municipal financial deals. The charges stem from Langford’s time as president of the Jefferson County Commission and head of its Dept. of Finance and General Services. He was charged with soliciting bribes in exchange for steering business to William Blount, a Montgomery, Ala., investment banker. It was a classic pay-for-play scheme tied to the sewer bonds, says U.S.