A major mortgage foreclosure settlement across the country has …
Rhode Island State House (photo by Bruce Morin)
Updated: Thursday, 11 Mar 2010, 5:03 PM EST
Published : Thursday, 11 Mar 2010, 4:28 PM EST
PROVIDENCE, R.I. (WPRI) - Lt. Governor Elizabeth Roberts is supporting a new bill she said would help to financially protect the Ocean State.
The bill would close the “Lucas Group loophole,” which allowed $370,000 in payments to a company that never had a contract with the state. If passed, the legislation would prevent state payment for goods and services, unless state purchasing rules are followed.
“I was shocked to learn that a company that offered services voluntarily to the state, that never went through an open, public bidding process, and never had a contract from the state, was able to turn around and secure payment and the state had no recourse,” said Roberts.
Roberts continued, "Particularly at a time when our government is cutting millions from education and social service programs, we cannot afford a loophole that permits funneling money to companies that have subverted the purchasing laws.”
Under the legislation, any state employee or official who engages a vendor or accepts goods or services and doesn't follow proper purchasing procedures, could face fines and/or termination.
The bill is sponsored by Representative Joy Hearn and Senator Joshua Miller.
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