Firm Pays $11 Million for Minority Contracting Abuse

January 20, 2012

Mayor Rahm Emanuel on Thursday touted a plan to reconfigure a contracting initiative for women- and minority-owned businesses, the same day his administration announced an $11 million settlement for abuse in a program that was scandal-plagued under his predecessor.

Allied Waste Transportation Inc. made the payment as part of a settlement with the city after using minority- and women-owned companies as "pass-through" subcontractors to qualify for city projects, according to the Law Department. The subcontractors did little or no work, instead passing along the contracts to companies not owned by women or minorities, according to a Law Department news release. 

One of the Allied pass-throughs on a contract for the company to truck municipal waste from transfer stations to landfills was Veronica Contracting Inc., said department spokesman Roderick Drew.

In 2009, federal prosecutors named Veronica as a participant in a City Hall bid-rigging scam. The company was a subcontractor then on several multimillion-dollar deals enjoyed by Allied Waste. 

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