Christie's Biggest Sandy Contractor Fired
Company Also Made Donation to Group Run by Christie
Thursday, January 23, 2014
WNYC
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Gov. Christie announces additional federal Sandy
recovery funds in Manahawkin this week, his first public appearance
after his State of the State speech.
(Governor's Office/Tim Larsen)
Sandy recovery has been the signature achievement of New Jersey
Governor Chris Christie, yet WNYC has learned his administration
quietly terminated its contract with its biggest contractor in charge
of getting Sandy victims back in their homes.
Christie officials wouldn't say why the contract was terminated more than two years before completion, but the company had been heavily criticized by Sandy victims.
Hammerman and Gainer, or HGI, won its contract last May shortly after its law firm made a $25,000 donation to the Republican Governors Association, which is now headed by Christie. It also contributed $1.7 million to his re-election campaign. The contractor's law firm is a based in New Jersey and politically connected.
HGI was being paid $68 million in fees to administer a $780 million program. Its performance was widely criticized at legislative hearings in Trenton over the last several months for being inefficient and unhelpful, and for losing paperwork. The contract was terminated in December, and took effect on Monday, but that had not been publicly announced. Documents indicating the arrangement were found on a state web site. The company is to be paid $10.5 million as an "unpaid balance" — and for work performing during a "transition period" following termination.
HGI was also criticized for how it implemented its home reconstruction program in Louisiana after Katrina, according to the Wall Street Journal. Company officials have said they were improving operations.
At a hearing earlier this month, Department of Community Affairs Commissioner Richard Constable III was asked about the performance of HGI, but did not indicate that the company was no longer operating in the state.
"We've recently concluded our relationship with HGI as New Jersey transitions to the next phase of disaster recovery," said Lisa M. Ryan, spokeswoman for Constable.
Cherie A. Pinac, the chief of operating officer of HGI, would not disclose the reasons for the terminated contract, but said it was a mutual agreement. "Under the terms of the contract, I'm not authorized to make a statement," Pinac said in a phone interview from her office in Louisiana.
Christie made an announcement about a new after-school program at an elementary school in Camden today, but he did not take questions from reporters.
This comes on the heels of two major scandals threatening Christie's political career: The George Washington Bridge lane closures to exact political revenge, and the charge that Christie officials threatened to cut Sandy relief funds to the town of Hoboken unless its mayor supported a redevelopment deal.
Christie officials wouldn't say why the contract was terminated more than two years before completion, but the company had been heavily criticized by Sandy victims.
Hammerman and Gainer, or HGI, won its contract last May shortly after its law firm made a $25,000 donation to the Republican Governors Association, which is now headed by Christie. It also contributed $1.7 million to his re-election campaign. The contractor's law firm is a based in New Jersey and politically connected.
HGI was being paid $68 million in fees to administer a $780 million program. Its performance was widely criticized at legislative hearings in Trenton over the last several months for being inefficient and unhelpful, and for losing paperwork. The contract was terminated in December, and took effect on Monday, but that had not been publicly announced. Documents indicating the arrangement were found on a state web site. The company is to be paid $10.5 million as an "unpaid balance" — and for work performing during a "transition period" following termination.
HGI was also criticized for how it implemented its home reconstruction program in Louisiana after Katrina, according to the Wall Street Journal. Company officials have said they were improving operations.
At a hearing earlier this month, Department of Community Affairs Commissioner Richard Constable III was asked about the performance of HGI, but did not indicate that the company was no longer operating in the state.
"We've recently concluded our relationship with HGI as New Jersey transitions to the next phase of disaster recovery," said Lisa M. Ryan, spokeswoman for Constable.
Cherie A. Pinac, the chief of operating officer of HGI, would not disclose the reasons for the terminated contract, but said it was a mutual agreement. "Under the terms of the contract, I'm not authorized to make a statement," Pinac said in a phone interview from her office in Louisiana.
Christie made an announcement about a new after-school program at an elementary school in Camden today, but he did not take questions from reporters.
This comes on the heels of two major scandals threatening Christie's political career: The George Washington Bridge lane closures to exact political revenge, and the charge that Christie officials threatened to cut Sandy relief funds to the town of Hoboken unless its mayor supported a redevelopment deal.
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