Local contractor: Bid rigging was common at GroWest
Story Created:
May 3, 2010 at 1:00 PM EDT
Story Updated:
May 4, 2010 at 2:11 AM EDT
UTICA, N.Y. (WKTV) - More accusations come to light against a local non-profit in the City of Utica that is already under investigation by both local and federal authorities.
One local contractor has come forward to say he witnessed the misuse of federal funds, first hand, at GroWest on a daily basis. The contractor, who wishes to remain anonymous, said he and other contractors were denied bids from the non-profit agency because a select few contractors were part of a scheme to make sure they received the work, as well as the federal grant money that went along with it.
The contractor said that for the two years he was trying to get work at GroWest, bid-rigging was a common practice. He says everyone was involved - from the contractors to certain staff at Gro West.
"I witnessed people that worked for GroWest tell other contractors not to bid on a job, that it was all going to be taken care of," the contractor said. "I witnessed another contractor telling the person who won the bid, what to bid."
Corporate Attorney J.K. Hage - the man who the city of Utica hired for the investigation - said what this contractor said is accurate and is just a part of the massive investigation. Hage said the contractor that spoke to NEWSChannel 2 is not alone, and he believes there are other contractors and homeowners who have similar information.
The contractor said he was denied four projects from GroWest because he was not a part of the scheme.
"I saw it, first hand," he said. "I saw two contractors talking to each other saying this is what you need to bid in order to get the job."
While Hage said the contractor's story coincides with the city's part of the investigation, there is also a question as to where the federal grant money went after it was awarded to contractors.
"If $50,000 was spent on a given property, was all of that $50,000 worth of labor and materials actually applied to that piece of property, or did it go elsewhere," Hage questioned.
John Denelsbeck was the Executive Director of GroWest during the time the contractor alleged the big rigging. Denelsbeck did not return a phone call for a comment.
City officials want to hear from those who do have information, and urge anyone with any information about GroWest to call the Utica's Corporation Counsel at 315-792-0171.
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