FOR RELEASE:

COMPTROLLER PREVAILS IN COURT PROCEEDING
ON I87-I84 CONSTRUCTION PROJECT

The New York State Supreme Court has affirmed that State Comptroller Alan G. Hevesi has Constitutional and statutory authority to determine that Worth Construction is not a responsible vendor and therefore could not be awarded a road construction project by the New York State Thruway Authority, Hevesi said today.

The Thruway Authority is already proceeding with the award to another vendor of the $46 million contract for construction on the interchange between Interstates 87 and 84 near Newburgh in Orange County.

The decision by Justice Dan Lamont, dated January 20, 2006, dealt with the issue of whether the Comptroller had the power to find Worth not responsible and the substance of the decision itself. The decision stated that the Comptroller “did not act in excess of his legal authority and jurisdiction when he determined that [Worth] was not a responsible bidder.” The Court also held that “the Comptroller’s determination finding that [Worth] is not a responsible bidder/vendor was rationally based upon the extensive investigation conducted by the Thruway and by the Comptroller’s Office.”

“This is terrific news for the mid-Hudson Valley, because it will help support continued economic growth by bringing one of the region’s most important and much-needed transportation links closer to reality,” Hevesi said. “It is also good news for all New Yorkers and for those who do business with the State, because it reaffirms our power to hold vendors to a standard of responsibility and integrity and to keep them from getting State contracts if they do not meet that standard.”

“I am pleased that we were able to work successfully with the Thruway Authority on this matter and that the project is proceeding,” Hevesi added.

"New Yorkers should be confident that construction jobs on our highways and bridges are being completed by a qualified and responsible firm and for the lowest price possible,” said Attorney General Spitzer. “Comptroller Hevesi and I have been working to bring reform to the state's public authorities and scrutiny to the contracting process. Today’s decision once again demonstrates that by teaming up we have been able to protect the public’s interest.”

“In rejecting this appeal by Worth Construction, the courts have again upheld the decision that the company should not be entrusted with the responsibility of this very important project,” said Senator Bill Larkin (R-C, Cornwall-on-Hudson). “Extensive investigations have been conducted by the Thruway Authority and the Comptroller’s Office, and I fully agree that the project should proceed with another bidder.” 

“The court has definitively rejected Worth Construction’s claim that Comptroller Hevesi exceeded his powers in rejecting the contract between the Thruway Authority and Worth,” said Assemblyman Thomas Kirwan (R, Newburgh). “We are lucky to have a Comptroller with the courage and willingness to exert his authority and prevent what would have been an affront to decency and to the people of New York State.”

In November, the Comptroller’s Office found that Connecticut-based Worth Construction is not a responsible vendor after an extensive review of materials supplied by the Thruway Authority, as well as independent research by Office of the State Comptroller (OSC) investigators and contract auditors. Among the Comptroller’s Office findings were:

Worth Construction’s president is under investigation by Federal authorities in Connecticut and faces possible indictment for alleged municipal contracting corruption.
According to law enforcement and public records, the firm and its principals have a long history of association with members of organized crime, including business partnerships between one of its principals and convicted organized crime associates.
Worth failed to provide complete answers to questions on the vendor questionnaire by not reporting the existence of related companies and certain corporate officers, and filed troubling financial statements raising concern about its cash position and its billing practices.

State agencies and certain public authorities are required by law to determine that the vendors selected for construction contracts are the lowest responsible bidders. All State agency contracts valued above certain cost thresholds are submitted to OSC for approval. The Thruway Authority is one of only two major public authorities whose contracts are not valid until approved by the Comptroller.

Click here for a copy of the January 20 court decision
Click here to see Comptroller’s press release from November 9 with complete details on findings regarding Worth Construction

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