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Minority Bus. / Contracting Corruption #98702

ABC Evening News for Tuesday, Sep 03, 1985
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(Studio) Report introduced
REPORTER: Peter Jennings

(DC) Corruption in federal contracts for minority businesses examined; econs. involved noted. [Labor Research Group spokesperson John RICHARDSON - claims phony minority and women businesses are being established by traditional white contractors.] Fronting technique explained. [Trans. Department spokesperson Jim MARQUEZ - ests. percentage of minority firms which are actually fronts.] Findings of government audits outlined on screen, discussed; RiverA. Hatch's alleged control of front companies in Oregon cited as example [HATCH - defs. business relationship with Christopher Scarrett's Hopsing Construction.] Hatch's financial involvement in Hopsing, include role of wife Suzanne Hatch in company, outlined. [HATCH - denies Hopsing is front.] [SCARRETT - denies being front company] Legal loophole allowing Hopsing to finish contract despite losing minority status with government noted. [Representative Parren MITCHELL - criticizes such loopholes.] Hatch's questionable involvement in Oakland, California, project examined. [Oakland city council spokesperson Wilson RILES - claims Hatch has formed dummy companies] Former Hatch employee Charles Croff's formation of C.E. Croff Construction company with Hatch cited as example [RICHARDSON - considers Croff a sham operation.] [CROFF - defs. co.] [HATCH - claims union is fabricating allegations against him.] H&H Electric noted owned by Hatch's wife Suzanne Hatch and Isabel Hendricks; details given. [HENDRICKS - denies dependency on Hatch.] Status of Hatch's minority companies in several states listed. [NV transportation department spokesperson Sal QUILICI - explains NV's refusal to certify Hatch's front companies] Alleged Hatch front company, Jim Winston and Sons Construction Company, examined. [Jacques WINSTON - denies being front.] Hatch's financial relationship with Winston described; government said ordering investigation.
REPORTER: Peter Lance

Reporter(s):
Jennings, Peter;
Lance, Peter
Duration:
00:06:10

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