Miami Fla April 12 2009
Four years after allegations surfaced that Wackenhut Corp. fraudulently overbilled Miami-Dade Transit for security work it never performed, the county is moving to replace the firm and support a lawsuit aimed at recouping millions paid for alleged ”phantom” workers at Metrorail stops.
County Manager George Burgess, in a memo to commissioners Friday, said he also wants to bar the Palm Beach Gardens-based security firm from doing business with the county in the future.
The move is sure to escalate the testy fight between Miami-Dade County and Wackenhut, which has denied wrongdoing and hired a bevy of lobbyists, including former Congresswoman Carrie Meek, to press its case. Wackenhut has held the contract to patrol mass transit stations for 20 years, although the latest agreement — a no-bid contract that pays the company as much as $17 million a year — expires in November.
Wackenhut issued a written statement late Friday saying it is “shocked that the County Manager has falsely accused us of intentionally overbilling the county.”
It called claims of overcharging both false and unsubstantiated, while asserting the county has “a history of mismanaged audits.”
The county action comes after several years of criticism that Miami-Dade government failed to address allegations of bogus charges for empty guard posts and doctored time sheets. The claims were first raised in an ongoing 2005 lawsuit and later detailed in a 2008 county audit, which initially estimated $6.26 million in overbillings but now pegs the total at $3.4 million.
”The evidence of overbilling has been overwhelming and existing for four years,” said attorney Mark Vieth, who filed the 2005 lawsuit pending in Miami-Dade Circuit Court. He contends that the Wackenhut overcharges are much higher than the county’s number.
After the May 2008 county audit, County Mayor Carlos Alvarez declared that the security firm had 90 days to rebut the findings or repay the county. Wackenhut did neither, yet the county didn’t move until now — with six months left on the contract.
Burgess defended the pace of the audit and the time it’s taken to decide a course of action, calling the issues complex and voluminous.
”The easiest thing to do is hang someone without trying to be thorough,” Burgess said in a Friday interview.
The flap over security guards at Metrorail stops is part of a broader history of waste and mismanagement that has punctuated Miami-Dade County’s stewardship of the transit system.
Perhaps the most glaring example was the creation of a half-penny sales tax in 2002 that the county later frittered away partially on salaries and expenses while failing to deliver on promised bus and rail service.
Some critics have called for creation of a transit authority, removing the county government’s control of the transportation system. The county said a new administration is pressing reforms.
The ”ghost post” Metrorail allegations added a fresh wrinkle to transit’s history.
The allegations arose in the August 2005 lawsuit against Wackenhut filed by a former guard at the county Juvenile Assessment Center, who filed a whistle-blower suit claiming phony billing practices by the security firm.
The complaint is filed under the False Claims Act, which allows private citizens to sue on behalf of government.
But the county has hardly been in accord with the suit. Indeed, Vieth sought, but failed, to depose county auditor Cathy Jackson last year while her long-awaited county audit remained unreleased to the public.
Jackson subsequently published findings that mirrored claims in the lawsuit. The audit prompted Burgess to write to County Mayor Alvarez nearly a year ago that there is ”no disputing” that Miami-Dade Transit is owed for hours not worked by Wackenhut officers.
In Friday’s memo, Burgess outlines the proposed replacements for Wackenhut, citing provisions in the new contracts that “hold the recommended firms accountable for appropriate staffing and accurate billing.”
The county manager is recommending that 50 State Security provide armed officers at all Metrorail and Metromover stations. A joint venture combining Professional Protection and Investigations Inc. and Security Alliance is also proposed to provide unarmed guards at all bus and rail maintenance facilities.
Separately, Allied Barton Security Services is recommended to take over security at the county’s Juvenile Services Department, a job held by Wackenhut since 1998.
The proposals are scheduled to go before the Budget, Planning and Sustainability Committee on May 12 and the County Commission on June 2.
But even if commissioners agree to remove Wackenhut, the security firm may not go before its contract expires in November. The reason: Burgess said a transition to new security firms will take at least three months.
”It doesn’t just happen overnight,” he said.
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