FORT LAUDERDALE, Fla. – CLARIFICATION: In an earlier version of this story we reported the county was exploring possible fines against Sunshine Cleaning on the IG's recommendation. County officials say "all options are on the table" in terms of possible punishment against the company, which could include barring it from future contracts or legal action, but the county has no ability to fine the company under its current contract. The county is now working to include that option in future county contracts.
A company with a big contract to clean the Fort Lauderdale-Hollywood International Airport is accused of misleading county officials and shortchanging minority businesses in the process.
When the Broward County Commission awarded Sunshine Cleaning a $62 million janitorial contract at the Fort Lauderdale-Hollywood Airport, the firm promised to spread 30 percent of that wealth to small and minority companies to fulfill its obligations under the County Business Enterprise program.
But the company then created a scheme to mislead the county regarding minority participation, according an Office of Inspector General report issued Wednesday, claiming in reports filed with the county that it provided nearly $11 million in business to those small companies, but in reality only giving about $660,000 in business to them.
"It was a scheme," Broward Inspector General John Scott said. "Sunshine cleaned the airport using its own employees, it hired them, it fired them, it disciplined them and it supervised them. They represented to the county that the employees belonged to four or five [small and minority businesses]. They misrepresented the relationship they had ... rather than allowing [subcontractors do the work] it merely allowed them to act as a fiction for Sunrise."
"Almost a pass-through?" asked Local 10 News investigative reporter Bob Norman.
"Yes, I wouldn't disagree with that," Scott said.
Sunshine Cleaning's owner, Larry Calufetti, who has been large campaign contributor to commission campaigns, put out a statement through a public relations firm, reading in part, "We won't let the OIG damage our company's reputation for honesty and great work that we have earned over more than 30 years in business. We have always been transparent with the county and stand by our business practices."
But Scott said proof of the scheme came in IRS filings, which contradicted Sunshine's claims to the county that its own employees were actually employed by minority firms like Emily K. Evans, which the OIG alleges received millions of dollars it never saw.
"When Sunshine had to file documents with the Florida Department of Revenue and the IRS, in that instance Sunshine admitted they were their employees," Scott said.
The county is now looking into possible recourse against Sunshine, which could include barring it from future contracts, and legal action. It is also exploring an OIG recommendation to include the option of monetary fines for companies that fail to comply with the small business program in the future.
The state attorney's office investigated and determined criminal charges weren't warranted in the case.
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