HELIX WATER CORRUPTION ALLEGED

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UPDATE November 18, 2014 5 p.m. -- Helix Water District has responded to ECM's request for comments on the 10 News investigation.  Helix contends that an independent inquiry as well as an in-house audit found no irregularities.  You can read the Helix responses here.

 

View part 1 of the 10 News investigation here with links to documents and watch for part 2 airing tonight.

By Miriam Raftery

November 18, 2014 (La Mesa)—Whistleblowers are alleging that a Helix Water District inspector and a contractor conspired to overcharge ratepayers for work that was never done.

The district refused to be interviewed on camera about the allegations.  However an investigation by JW August at 10 News, an East County Magazine news partner, found documents that appear to substantiate some of the claims made by the whistleblowers, employees who spoke under condition that their names not be publicized due to fears of retribution.

East County Magazine has contacted Carlos Lugos, general manager at Helix, for comments on the 10 News investigation. We also inquired whether steps are being taken by the District to assure that overcharges are not made in the future. plus we asked whether competitive bids were obtained for the projects in question.  We will publish any responses once received.

In one case, a whistleblower claims the district was overbilled by $101,000 by S.C. Valley Engineering for 300 feet of pipeline more than was actually installed.  Inspector William Gaston approved the extra pipeline, according to public records, and negotiated for extra days on the job that sources told 10 News were not needed.  The district claims it believes it got what it paid for.

On another occasion, 10 News found that Gaston signed off on extra pipeline for work on Alpine Street in La Mesa after paving had already been laid, making it impossible for the pipes to have been installed. Gaston refused to be interviewed but told a 10 News reporter that the sources were “bad.”

The 10 News investigation, led by JW August, also found an internal memo between Helix executives regarding an investigation into accusations of irregular billing practices on La Mesa Boulevard, where major construction has been underway. 

S.C. Valley Engineering refused an interview with 10 News but in an e-mail sent to JW August, the company’s president Samuel Wathen said S.C. Valley Engineering has done pipeline projects for most public agencies in the County. “Our reputation for business ethics and quality work are paramount to our success,” the e–mail stated. also declined an interview, but the owner talked to Team 10 through email.

These are the results of part I. Part II will air tonight.


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