MBE, WBE, DBE: Why Are Such Programs Often Rife with Fraud?

Government contracting requirements that encourage the growth of minority-owned businesses are laudable, says Patrick Kerkstra, but such programs are rife with abuse. What makes them so susceptible to fraud and what can be done?

1 minute read

May 14, 2013, 11:00 AM PDT

By Jonathan Nettler @nettsj

"Philadelphia Inspector General Amy Kurland announced last week that local contractors have used 'sham minority subcontractors' on 19 projects to skirt antidiscrimination requirements," reports Kerkstra. "In New York, investigations into fraudulent hiring of minority- and women-owned subcontractors are so common that they have become something of a specialty for local prosecutors."

"The story is the same in Chicago, Seattle and Dallas. And that’s just in the last few years. Go back further, and it’s the rare city or state that hasn’t endured a scandal or four tied to well-intentioned minority contracting regulations."

"What is it about minority contracting programs that makes them such persistent sources of fraud and corruption?"

FULL STORY: Sham Minority Contractors Have Been Hired in Your City, Probably

Monday, May 13, 2013 in Next City

Government / Politics Social / Demographics United States Minority-Owned Business Contracting Requirements MBE WBE DBE View More

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