Skanska Settles DBE Inquiry With $19.6-Million Payment
A New York City unit of contractor Skanska AB has agreed to pay $19.6 million to settle a federal probe into disadvantaged-business-enterprise subcontracting practices among city contractors. Under the March 31 settlement, Skanska USA Civil Northeast will not face civil claims or criminal charges. The investigation of other firms continues.
The pact was announced concurrently with an indictment of the owners of Environmental Energy Associates (EEA), a Skanska DBE sub. Prosecutors say on one project, the Skanska unit “effectively self-performed the work … and helped create the appearance that EEA had done commercially useful work on the project.”