Secret No More: Rail Subcontractors Received $235M In One Year
For years, HART officials refused to release how much money subcontractors were being paid on the聽biggest infrastructure project in state history. Until now.
The finally lifted the veil this week on hundreds of millions of dollars of rail-related payments that have gone to subcontractors over the past fiscal year, and that have long been kept secret from the public.
According to to the Honolulu City Council, from聽July 1, 2015, to June 30, 2016 聽HART received more than $432 million in invoices from contractors working on the city鈥檚 $8.3 billion commuter rail line that will run from East Kapolei to Ala Moana Center.
Of the $432 million, at least $235 million in invoices were submitted by subcontractors who were hired by the prime contractors, such as AECOM and Parsons Brinckerhoff, to perform work on the project or provide materials.
HART officials had long refused to release subcontractor payment information to the public, saying that they didn鈥檛 have the legal authority to access the records and that any disclosure would be done on a voluntary basis by the contractors who hired the subcontractors.
But a 2015 Civil Beat investigation into HART鈥檚 contracting practices found otherwise. In fact, numerous contract documents related to the project indicated HART had access to the subcontractor data and could release it if it chose to do so.
Honolulu City Auditor Edwin Young came to similar conclusions in his official examinations of the agency and how it tracks spending. As Young told Civil Beat last year, 鈥淥ur argument is that the (subcontractor) information is in the contractor鈥檚 database, all you have to do is ask for it.鈥
The City Council forced HART to make public the subcontractor invoice data after passing a聽five-year extension of a 0.5 percent general excise tax surcharge. That surcharge extension was supposed to cover a nearly $1 billion shortfall.
The money, however, won鈥檛 be enough to complete the project. Costs have continued to rise, and another $1.5 billion shortfall is projected.
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About the Author
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Nick Grube is a reporter for Civil Beat. You can reach him by email at nick@civilbeat.org or follow him on Twitter at . You can also reach him by phone at 808-377-0246.