Inviting fraud in road repair
Published 2:21 pm Tuesday, September 6, 2016
Add potential fraud to the lengthening list of problems with Oregon’s Department of Transportation.
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Well known for its exaggerated forecasts and increasing bonded indebtedness despite higher taxes, a recent article shed light on the agency’s vulnerability to fraud in road repairs.
Nick Budnick of Pamplin Media reported that ODOT’s road-paving inspection program has more cracks than any of the worst streets in Grant County.
The report revealed that:
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• Asphalt contractors can game ODOT’s inspections and compromise road quality, leading to premature potholes and further costly repairs.
• Oregon does not track asphalt quality results systematically or use testing methods common in other states.
• Contractors often know in advance where and when ODOT will conduct asphalt inspections.
Worse, these vulnerabilities have been well known to ODOT management since at least 2005. That’s when the Federal Highway Administration pointed out these issues in a nationwide report and made recommendations for improvement. Eight years later, the feds conducted a new study and reached the same conclusions. Another federal report described the quality checks used by Oregon as “very weak,” saying they “will only detect severe problems with contractor test results.”
Former ODOT employees also have called attention to the agency’s lax oversight system. “Quality control was not taken seriously,” a long-time quality control specialist told Budnick. A former internal auditor for ODOT said there is a “huge risk of fraud.” A former quality assurance specialist said that while there are plenty of good road contractors, “it is easy for a contractor to falsify documentation.”
ODOT managers downplay these concerns. They claim there is no evidence that contractors are gaming the system. But they note that the state has suspended several contractor technicians, one of whom was suspected of fraud.
Doing nothing and refusing to acknowledge the potential for fraud despite repeated warnings is a glaring example of wrong at ODOT — an agency that will collects $4.6 billion in revenue this biennium.
Legislators should keep that in mind as they craft a new transportation spending bill. Taxpayers ought to remain skeptical when ODOT asks for higher taxes and fees. Reform must come before more revenue.