Televised claims of fraud and lack of
responsiveness to Washington DOT minority business certification deadlines have
led to the resignation of Washington Office of Minority and Women Owned
Business Enterprises Director Cathy Canorro. The resignation followed the third
day of televised KING-5 news reports detailing contractor claims of fraudulent
certification that unqualified businesses were certified by Canorro as eligible
for women and minority set aside work on state projects. Several state ethics
investigations regarding conduct at the OMWBE are also underway.
Canorro has also been under pressure from WDOT for
failing to timely process applications of contracting companies for minority or
women owned business certification, leading to an ultimatum April 17 from
Washington Governor Chris Gregoire to shape up or face reorganization of OMWBE.
Federal law requirements for MBE and WBE certification to receive set asides
called for on numerous federally funded Washington construction projects have
been the subject of criminal prosecutions for fraud in several jurisdictions in
recent months.
Governor Gregoire’s press official Karina Shagren
says the future of the state’s minority and women owned business certification
process is uncertain. “A structural review of OMWBE is still underway, as is a
top to bottom performance review. Once those reviews are complete, we’ll have a
better idea of how the state will conduct the duties of OMWBE moving forward,”
Shagren said. “In the meantime, a search will begin to identify candidates to
replace Cathy.”
