Longtime Houston, Harris County vendor allegedly defrauded another company in multi-million-dollar bribery scheme

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Sugar Land firm that's won $55M from city, county contracts under investigation for bribery scheme

is under federal investigation for allegedly defrauding another company in a multi-million-dollar bribery scheme.

With a focus on water and wastewater engineering, the company's website touts its involvement in a number of major city infrastructure projects, including the $1.7 billionKalaga’s work for the city continued even after accusations of fraud and bribery first surfaced in a 2019 civil lawsuit that the victim company, Toshiba International Corporation, filed against him, alleging he used fake bids to trick the manufacturing giant into awarding him over $100 million in construction contracts.

Out of the $50 million in payments, about $36 million came from city contracts that began during former Mayor Annise Parker’s administration, and $11 million were from contracts that started under Mayor Sylvester Turner. The rest was paid during Parker predecessor Bill White's final two years in office.

"When we're vetting contracts for our prime contractors, absolutely, they should be vetted and you should look at the background of the companies," Martin said."We do not pick subcontractors for the prime contractor. ... So, if they're doing anything illegal, if they're doing anything unethical, if they're not performing, then that's that prime contractor who has the ability to get rid of them and choose a subcontractor that would do good work for them.

 

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