MBE, WBE, DBE: Why Are Such Programs Often Rife with Fraud?

Government contracting requirements that encourage the growth of minority-owned businesses are laudable, says Patrick Kerkstra, but such programs are rife with abuse. What makes them so susceptible to fraud and what can be done?

"Philadelphia Inspector General Amy Kurland announced last week that local contractors have used 'sham minority subcontractors' on 19 projects to skirt antidiscrimination requirements," reports Kerkstra. "In New York, investigations into fraudulent hiring of minority- and women-owned subcontractors are so common that they have become something of a specialty for local prosecutors."

"The story is the same in ChicagoSeattle and Dallas. And that’s just in the last few years. Go back further, and it’s the rare city or state that hasn’t endured a scandal or four tied to well-intentioned minority contracting regulations."

"What is it about minority contracting programs that makes them such persistent sources of fraud and corruption?"

Full Story: Sham Minority Contractors Have Been Hired in Your City, Probably


Brand new! Urban Grid City Collection

Each city has its own unique story. Commemorate where you came from or where you want to go.
Grids and Guide Red book cover

Grids & Guides

A notebook for visual thinkers. Available in red and black.
Book cover of the Guide to Graduate Planning Programs 4th Edition

Thinking about Grad School?

The Planetizen Guide to Graduate Urban Planning Programs is the only comprehensive ranking and listing of graduate urban planning programs available.
Starting at $24.95
Book cover of Insider's Guide to Careers in Urban Planning

So you want to be a planner...

Check out our behind the scenes look at 25 careers in the Urban Planning field
Starting at $14.95