MSD board lifts suspension of concrete suppliers, citing ‘incorrect’ clearance of business arrangement given by agency in 2010

June 27, 2016 By Joe Sonka
Insider Louisville

The board of the Metropolitan Sewer District voted Monday to accept the recommendation of a hearing officer and lift the suspension of concrete suppliers Advance Ready Mix and Bancroft Group — with board chair Cynthia Caudill indicating the agency incorrectly gave clearance to their business relationship in 2010.

The two companies were suspended from future MSD contracts last year by former executive director Greg Heitzman, following an investigation finding evidence that minority-owned Bancroft had merely served as a “passthrough” for majority-owned Advance — with Bancroft winning lucrative contracts but Advance supplying all of the labor, concrete and equipment for those projects — undermining the rules of their supplier diversity program. The investigation was initiated due to an Insider Louisville report on Bancroft’s business model last year, and MSD officials said the examination by a contracted auditor confirmed our reporting.

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