From The Daily Reflector
http://www.reflector.com/news/former-dot-engineer-gets-jail-sentence-of-37-months-1008716.html
A former Department of Transportation engineer was sentenced Tuesday in federal court to three years in prison on extortion charges in connection with bridge work done in Pitt and Beaufort counties, a spokeswoman for U.S. Attorney George E.B. Holding said.
Dalton Ray Alligood Jr. was sentenced to 37 months in prison, followed by two years of probation, for extortion under the color of official right, a violation of U.S. statutes, spokeswoman Robin Zier said. Alligood worked as a district engineer in charge of the bridge maintenance unit in Pitt and Beaufort counties for the NCDOT transportation division. He supervised 32 employees and was empowered to enter “fully operational rental” contracts with private companies, Zier said.
“Alligood used his power to extort kickbacks from contractors in exchange for contract awards,” Zier said.
In 2004, Alligood provided an excavation company two small, fully-operational rental contracts after he formed a social relationship with its owners, Zier said. The owners then offered him a 10 percent kickback on all future contracts, which Alligood accepted with the condition that the kickbacks be made in cash, Zier said.
Alligood went on to award dozens of contracts to the excavation company and received payments in excess of $300,000.
The scheme came to an end when the arrests of former NCDOT officials Danny Taylor, Chad Fornes and Mike Delmonte, who were charged with using their positions to extort cash from contractors, were reported in the media, Zier said.
Holding commented on the situation following the sentencing.
“Civil servants are responsible to perform their duties free of any conflict or improper personal gain,” he said. “Unfortunately, the defendant set aside those obligations.”
Thursday, December 10, 2009
Everything that's wrong with NC state government
From WRAL.com:
http://www.wral.com/news/state/story/6579098/
Perdue probes buys from firm tied to Rand
RALEIGH, N.C. — Gov. Beverly Perdue has asked the state Department of Transportation Department to look into its purchases of costly surveillance equipment from a security company headed by a powerful politician.
Multiple media outlets reported Wednesday that Perdue said the purchases by the Division of Motor Vehicles and other state agencies were being reviewed. She said the results would be made public.
At least four state agencies have bought nearly $200,000 in equipment from Law Enforcement Associates since 2003, when state Sen. Tony Rand became the company's board chairman. The Fayetteville Democrat is stepping down as Senate majority leader to become Perdue's parole chief.
DMV bought more than $64,000 in gear from LEA without seeking competitive bids.
http://www.wral.com/news/state/story/6579098/
Perdue probes buys from firm tied to Rand
RALEIGH, N.C. — Gov. Beverly Perdue has asked the state Department of Transportation Department to look into its purchases of costly surveillance equipment from a security company headed by a powerful politician.
Multiple media outlets reported Wednesday that Perdue said the purchases by the Division of Motor Vehicles and other state agencies were being reviewed. She said the results would be made public.
At least four state agencies have bought nearly $200,000 in equipment from Law Enforcement Associates since 2003, when state Sen. Tony Rand became the company's board chairman. The Fayetteville Democrat is stepping down as Senate majority leader to become Perdue's parole chief.
DMV bought more than $64,000 in gear from LEA without seeking competitive bids.
Tuesday, September 29, 2009
DMV commissioner claims no link between phone contract and gifts
WRAL reports http://www.wral.com/news/local/story/6102981/
Raleigh, N.C. — The commissioner of North Carolina's Division of Motor Vehicles says there's no evidence linking a phone company contract to gifts and meals provided by its workers to state employees.
Commissioner Mike Robertson said Tuesday that Verizon says 62 state workers or their family members received restaurant meals, hockey tickets and other benefits from company employees. Such acts would be in violation of the state ethics policy.
The State Bureau of Investigation has been asked to look at what happened. Robertson says the SBI is also investigating computers used to implement the state's electronic sticker program. The DMV paid for the computers, but currently some are unaccounted for.
“The SBI has been asked to look into this, and to whether or not any DMV employee had knowledge of this inventory or those stored computers," Robertson said. “It is important to note that at the end of the day, Verizon bears the responsibility for the computers not accounted for, (and) not DMV.”
Robertson says no current employees have yet been disciplined and it appears there's no evidence that the gifts had a role in expanding a Verizon state contract.
Verizon spokesman Jack Hoey said five employees will be disciplined regarding the meals and gifts, and that the company is cooperating with the DMV to find the missing computers.
Raleigh, N.C. — The commissioner of North Carolina's Division of Motor Vehicles says there's no evidence linking a phone company contract to gifts and meals provided by its workers to state employees.
Commissioner Mike Robertson said Tuesday that Verizon says 62 state workers or their family members received restaurant meals, hockey tickets and other benefits from company employees. Such acts would be in violation of the state ethics policy.
The State Bureau of Investigation has been asked to look at what happened. Robertson says the SBI is also investigating computers used to implement the state's electronic sticker program. The DMV paid for the computers, but currently some are unaccounted for.
“The SBI has been asked to look into this, and to whether or not any DMV employee had knowledge of this inventory or those stored computers," Robertson said. “It is important to note that at the end of the day, Verizon bears the responsibility for the computers not accounted for, (and) not DMV.”
Robertson says no current employees have yet been disciplined and it appears there's no evidence that the gifts had a role in expanding a Verizon state contract.
Verizon spokesman Jack Hoey said five employees will be disciplined regarding the meals and gifts, and that the company is cooperating with the DMV to find the missing computers.
Saturday, January 10, 2009
Lapsed warranty will likely cost DOT millions to fix I-795
From Jan. 9, 2009 WRAL.com :
Goldsboro, N.C. — At least one state lawmaker says a lack of accountability is to blame for a bad paving job along 18 miles of Interstate 795, which could cost the state millions of dollars to repave.
The North Carolina Department of Transportation said Thursday it could cost anywhere from $14 million to $22 million to fix the stretch of road running from Wilson to Goldsboro, which started cracking 16 months after the project was complete. A report from the Federal Highway Administration partly blames air pockets in two hot-mix asphalt layers for the problems.
"The person responsible should be fired," Sen. Neal Hunt, R-Wake, who sits on the Joint Legislative Transportation Oversight Committee, said Friday. "Bottom line – if he made a $20 million boo boo, he needs to be terminated, but you can't find out who it is (because no one person is responsible). That's the problem."
Another part of Hunt's concern is that the DOT discovered the problem four months after its 12-month warranty on the $120 million highway expired.
DOT is already paying the contractor, Wilson-based S.T. Wooten, nearly $500,000 to repair a number of large cracks and potholes along the interstate, and officials say it is likely the state will also be responsible for paying the company to repave the rest of the roadway.
Victor Barbour, the DOT's administrator for technical services, which oversees contracts, said the agency didn’t purchase an extended warranty because of the cost increase that would have been associated with the project.
But Hunt believes extended warranties are worth the investment.
"To me, it's a no-brainer, absolutely," he said. "If a private business were doing this, they would not pay the bill until they were sure it was right. Period."
Hunt wants to know why history seems to be repeating itself.
In 2007, the DOT spent about $22 million to repave a 10.6-mile stretch of Interstate 40 in Durham after finding that expansion joints were improperly constructed when new concrete was laid on top of the old during a widening project.
DOT engineers began noticing problems with it before the project was finished, and it hired the same contractor to fix it, because under state law, the lowest qualified bidder must be awarded the contract.
Bruce Dillard, the DOT's inspector general, whose job is to promote accountability and efficiency and minimize fraud, waste and abuse, said Friday his office has no intention of auditing the I-795 project. He declined to comment further as to why.
DOT says it is too premature to say whether the department will revisit its warranty policy.
"I think we'll do an evaluation process and determine what direction we need to take with regard to the warrant," Barbour said.
Reporter: Bruce Mildwurf
Goldsboro, N.C. — At least one state lawmaker says a lack of accountability is to blame for a bad paving job along 18 miles of Interstate 795, which could cost the state millions of dollars to repave.
The North Carolina Department of Transportation said Thursday it could cost anywhere from $14 million to $22 million to fix the stretch of road running from Wilson to Goldsboro, which started cracking 16 months after the project was complete. A report from the Federal Highway Administration partly blames air pockets in two hot-mix asphalt layers for the problems.
"The person responsible should be fired," Sen. Neal Hunt, R-Wake, who sits on the Joint Legislative Transportation Oversight Committee, said Friday. "Bottom line – if he made a $20 million boo boo, he needs to be terminated, but you can't find out who it is (because no one person is responsible). That's the problem."
Another part of Hunt's concern is that the DOT discovered the problem four months after its 12-month warranty on the $120 million highway expired.
DOT is already paying the contractor, Wilson-based S.T. Wooten, nearly $500,000 to repair a number of large cracks and potholes along the interstate, and officials say it is likely the state will also be responsible for paying the company to repave the rest of the roadway.
Victor Barbour, the DOT's administrator for technical services, which oversees contracts, said the agency didn’t purchase an extended warranty because of the cost increase that would have been associated with the project.
But Hunt believes extended warranties are worth the investment.
"To me, it's a no-brainer, absolutely," he said. "If a private business were doing this, they would not pay the bill until they were sure it was right. Period."
Hunt wants to know why history seems to be repeating itself.
In 2007, the DOT spent about $22 million to repave a 10.6-mile stretch of Interstate 40 in Durham after finding that expansion joints were improperly constructed when new concrete was laid on top of the old during a widening project.
DOT engineers began noticing problems with it before the project was finished, and it hired the same contractor to fix it, because under state law, the lowest qualified bidder must be awarded the contract.
Bruce Dillard, the DOT's inspector general, whose job is to promote accountability and efficiency and minimize fraud, waste and abuse, said Friday his office has no intention of auditing the I-795 project. He declined to comment further as to why.
DOT says it is too premature to say whether the department will revisit its warranty policy.
"I think we'll do an evaluation process and determine what direction we need to take with regard to the warrant," Barbour said.
Reporter: Bruce Mildwurf
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