More To The Story: IEM’s Performance Deficiency Problems

IEM racked up 443 performance penalties for their work in Louisiana alone. So why would the Cooper administration select them to help NC recover from Matthew?

According to information obtained by Resolute Free Press, IEM has had to deal with complaints about their work in multiple states. As we pointed out in our video, IEM racked up 443 deficiency letters and notifications of performance penalties for their work in Louisiana alone.

A protest was lodged in Louisiana over the contract that was awarded to IEM. 

“The firm that finished second behind IEM in the scoring process, AECOM, lodged a formal protest with the state April 20, challenging IEM’s selection on the grounds that it would cost the state more money and would not be able to serve as many homeowners. AECOM also said the subjective, technical scoring process, in which IEM outscored all its competitors, seemed to be predetermined to favor IEM.” (Source: Business

In 2015, IEM’s CEO Madhu Beriwal donated $5,000 to Democrat John Bel Edwards’s bid for the Louisiana Governorship. Edwards won the election and his office, like Roy Cooper’s in North Carolina, was the main facilitator of hurricane relief fund awards.

IEM’s Problems Beyond Louisiana

In 2014, a dispute was filed against the State of New York by the company involved in the Hurricane Sandy project.

The company, ProSource, alleged that their payment was being withheld until subcontractors working for them were allowed to ‘take over’. The main subcontractor was IEM.

“After the state announced its expectation that ProSource make its employees available to IEM, ProSource advised the state that IEM and ProSource employees had non-compete agreements with ProSource,” the lawsuit states.

“The state then refused to pay ProSource for millions of dollars in already earned payment for past services unless ProSource waived its non-competes and allowed IEM to simply absorb and take over a significant percentage of ProSource’s trained and valuable employees.”

The lawsuit describes the actions taken by the state as “unethical and illegal conduct” and a zeal to “take political credit” for the handling of Hurricane Sandy cleanup efforts.

The lawsuit alleges that Gov. Andrew Cuomo’s staff was “directly involved” with ProSource’s contract and payment for services through the Governor’s Office of Storm Recovery (GOSR). (Source: The Daily Gazette)

In 2018, IEM CEO Madhu Beriwal donated $10,000 to Governor Andrew Cuomo’s reelection campaign.

In 2017 in New Jersey, the Hurricane Sandy contract awarded to IEM was protested by a competing company, APTIM, which alleged the proposal IEM put forth was not “true and accurate” and made “false statements” and “false representations.”

NC Special Committee on Hurricane Relief Re-Authorized

With all of these complaints about IEM, several states where a pay-to-play scenario have taken place, and the lack of action by the Cooper administration on Hurricane Matthew relief, it is no wonder that on July 23rd, 2018, Speaker of the House Tim Moore reauthorized the Special Committee on Hurricane Relief.

Key excerpts from the Speaker’s announcement:

Hurricane Matthew dropped more than 12 inches of rain on eastern North Carolina in October 2016, leaving much of the region underwater for several days and causing catastrophic damage to homes and businesses.

Nearly two years later, just one of twenty-two affected counties has received final approval to begin spending $236 million of federal community development block grants for disaster recovery (CDBG-DRs), according to the state’s Emergency Management Division.

Another three counties are expected to complete required paperwork in August, according to the division, and work is ‘just now underway in the remaining 18 counties.’

The statement goes on to say that the Legislature has acted where Governor Cooper has not by already having appropriated “$200 million to aid victims in the Disaster Relief Act of 2016, another $100 million in the Disaster Relief Act of 2017, and the 2018 state budget directed $60 million to a new Reserve for Disaster Relief.

Resolute Free Press