Lexington bidder admits he did it

SCE&G hid bid-rigging from state regulators

Jerry Bellune
Posted 10/18/18

A Lexington business owner has admitted submitting fake bids to win SC Electric & Gas contracts.

The Chronicle is not identifying the owner until his side of the story can be told.

The …

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Lexington bidder admits he did it

SCE&G hid bid-rigging from state regulators

Posted

A Lexington business owner has admitted submitting fake bids to win SC Electric & Gas contracts.

The Chronicle is not identifying the owner until his side of the story can be told.

The Charleston Post and Courier reported he had submitted bids disguised as coming from other companies but had permission from at least one of them.

An internal investigation by SCANA, SCE&G’s owner, found evidence that he was submitting bids for companies purportedly competing against his company.

Email addresses and the handwriting on some of the documents showed he was filing the bids to guarantee his was the low bid.

He was confronted about the forgery in August 2015 by a SCANA investigator who met with him and the owner of one of the other businesses used to orchestrate the fake bidding.

The Lexington owner admitted to forging a signature on bids for his company. But he assured the investigator he had permission.

The other owner didn’t respond to calls from the Post and Courier. But the Lexington owner told a SCANA investigator they were “friendly competitors.”

The Post and Courier reported the Lexington bidder said, “I don’t have anything to lie or hide. If that’s fraudulent, then I’m guilty.”

The Chronicle has left an invitation for him to give his side of the story on his company voicemail.

SCANA executives in 2015 learned about the million-dollar bid-rigging scheme but did not report it to state or federal law enforcement.

The alleged fraud shows the secrecy SCANA leaders used to cloak the failed $9 billion nuclear project.

The Post and Courier reported that:

• SCANA hired attorneys to complete background checks on those involved.

They wanted to know if SCE&G had to report the questionable purchases under federal regulations.

• They considered “civil and criminal fraud claims” against Chicago Bridge and Iron, the contractor that approved the purchases.

• News of the suspicious purchases traveled quickly to SCANA’s top executives.

• One top nuclear project executive flagged the case for SCANA’s nuclear chief Jeff Archie. In an email, the executive described the purchases as “potential fraud.”

The investigation forced CB&I to credit SCANA and its project partner, state-run Santee Cooper, for the money they spent on the overpriced office supplies.

• SCANA decided to hide the finding, according to the newspaper’s source, who asked not to be named for fear of reprisal.

• Reports from an outside engineering firm and SCANA auditors identified problems with ruined parts, unorganized warehouses and mislabeled supplies.

• SCANA inadvertently disclosed its investigation in legal bills it filed with the Public Service Commission.

• Since then, SCANA attorneys have fought to keep other emails and documents about the findings secret.

• SCANA spokesman Eric Boomhower called the investigation a “financial dispute.” SCANA’s investigators referred to it as fraud.

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