Philadelphia Inspector General Amy Kurland announced last week that local contractors have used “sham minority subcontractors” on 19 projects to skirt antidiscrimination requirements.
In New York, investigations into fraudulent hiring of minority- and women-owned subcontractors are so common that they have become something of a specialty for local prosecutors. The most recent instance was a $10 million settlement reached with Siemens Electrical.
The story is the same in Chicago, Seattle and Dallas. And that’s just in the last few years. Go back further, and it’s the rare city or state that hasn’t endured a scandal or four tied to well-intentioned minority contracting regulations.
The particulars of the rules vary from city to city and state to state, but the objective is always the same: Foster economic development in minority communities by requiring (or strongly encouraging) companies awarded public contracts to hire subcontractors owned by minorities or women.
Keep reading this article at: http://nextcity.org/daily/entry/sham-minority-contractors-have-been-hired-in-your-city-probably
