HELEN

ROSENTHAL

CHAIR
Contracts

DISTRICT OFFICE
563 COLUMBUS AVENUE, AT 87TH STREET
NEW YORK, NY 10024
(212) 873-0282

COMMITTEES
Finance
Housing and Buildings
Cultural Affairs
Community Development
Oversight and Investigations

Council Member, District 6

Manhattan

CITY HALL OFFICE

250 BROADWAY, ROOM 1744
NEW YORK, NY 10007
(212) 788-6975
www.council.nyc.gov

THE COUNCIL
OF
THE CITY OF NEW YORK

FOR IMMEDIATE RELEASE

November 25, 2014
Contact: Stephanie Buhle
Director of Communications
sbuhle@council.nyc.gov
Council Members Rosenthal, Cornegy, and Cumbo Praise Manhattan District
Attorney Cy Vances Grand Jury Report into MWBE Fraud and Pledge to
Investigate This Further in a Joint January 2015 Hearing
On Monday, November 24, 2014 Manhattan District Attorney Cy Vance released a New
York State Supreme Court grand jury report uncovering widespread fraud and criminal
conduct among participants in the city and states MWBE procurement program. The
report revealed evidence of contractors submitting paperwork and invoices documenting
partnerships with qualifying MWBE business when in fact those businesses were not
owned by minorities or women or did not have the capacity to do the prescribed work.
These revelations come as Council Members Rosenthal, Cornegy and Cumbo prepare to
hold a joint hearing on the Administrations plans to strengthen the existing Minority and
Women-owned Business Enterprises (M/WBE) Program.
"The Citys MWBE program provides an essential pathway for equal access to city
contracts and brings greater diversity and competition to procurement. There is no room
for those seek to defraud and undermine what is a thriving and impressive program,
said Council Member Helen Rosenthal, Chair of the Contracts Committee. I
applaud DA Vances investigation, and his suggestions for the citys MWBE program

will be reviewed at an upcoming Contracts Hearing so the city can move quickly to
protect itself from continued fraud.
MWBE programs are too important to minority and women owned business owners to
allow unscrupulous actors to take advantage of them. By protecting the integrity of these
programs we will protect and expand opportunities for real economic growth for minority
firms. Im grateful for DA Vances vigilance and look forward to exploring his
suggestions for improvement at Januarys joint hearing of the Councils Contracts and
Small Business committees, said Council Member Robert E. Cornegy, Jr. Chair of
the Committee on Small Business.
Small businesses are a vital component in the growth and economic development of our
city. The Minority and Women-Owned Business Enterprise Program (MWBE) exists to
increase access and promote diversity within the procurement process. The misuse of this
initiative jeopardizes the viability of the MWBE program, which is a lifeline for
thousands of small business owners who might not have otherwise been able to
successfully compete for city contracts. I look forward to working with my colleague and
Chair of the Contracts Committee, Council Member Helen Rosenthal to identify practical
solutions that will protect this critical opportunity for small business growth and
sustainability within our community, said Council Member Laurie A. Cumbo, Chair
of the Womens Issues Committee.
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