UPDATE: Swedish construction firm settles over government contracts 

Swedish-owned construction giant Skanska USA agreed to pay the U.S. government almost $20 million to avoid prosecution for allegedly setting up a bogus minority-owned firm to win lucrative government contracts. Federal prosecutors said Skanska USA allegedly “helped create the appearance” that Environmental Energy Associates, registered as owned by an Asian-American, was actively subcontracting for it. During 15 years, Environmental Energy collected falsely certified fees on major projects such as JFK International Airport and the World Trade Center.

UPDATE: Skanska, which admitted no wrong-doing in the settlement,  issued the following statement Friday from Richard Cavallaro, President of Skanska USA Civil Inc.:

“Skanska takes pride in its industry leadership in supporting diversity and we recognize, and regret, that we did not follow best practices with respect to our use of EEA (Environmental Energy Associates) as a D/M/BE (disadvantaged, minority and woman-owned business enterprises) on certain projects.”


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