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Federal lawsuit accuses CMP parent company of bid-rigging and racketeering

WMTW Portland ME logo WMTW Portland ME 12/5/2021
The federal complaint alleges Avangrid brought unnecessary equipment with the intention of recovering costs through ratepayers. © WMTW image The federal complaint alleges Avangrid brought unnecessary equipment with the intention of recovering costs through ratepayers.

A new lawsuit accuses Avangrid, the parent company of Central Maine Power, of racketeering and bid-rigging.

A former subcontractor, Paulo Silva, CEO of the Pennsylvania-based company Security Limits Inc. claims Avangrid bought unnecessary equipment with the intention of recovering costs through ratepayers.

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The civil complaint, filed in federal court in the Southern District of New York, alleges this was part of, “a brazen racketeering scheme, replete with bid-rigging, accounting manipulation, warehouses built solely to house mountains of unused equipment procured under bogus pretenses.”

The suit also states, “Much of the equipment remained as of January 2021 in storage in UTI warehouses in Maine and New York.”


Video: Protesters corner Portland police into garage (Reuters)

Avangrid says the claims have no merit and described Silva as a disgruntled subcontractor claiming in a statement he is, “bitter he didn’t win competitive procurements and that his relationship with the contractor soured.

Avangrid said late Saturday night they filed a countersuit in New Mexico against Silva and Security Limits Inc., claiming he, "interjected himself into the merger review process between Avangrid and PNM Resources in New Mexico after Avangrid rebuked his threats to do so if Avangrid would not agree to enter into a new contract with him."

The company also stated, “the allegations and claims have no merit, and the Company will vigorously defend itself.”

Central Maine Power is not mentioned in the lawsuit.

On Saturday Gov. Janet Mills issued a statement calling on the state’s public utilities commission to review the complaint, saying, in part, “any act of wrongdoing or any misconduct that harms Maine people deserves swift action, accountability, and consequences.”

READ THE FULL STORY:Federal lawsuit accuses CMP parent company of bid-rigging and racketeering

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