Block Calls for Ethics Commission Investigation on State Beach Concessions
Wednesday, August 13, 2014
Republican candidate for Governor Ken Block is calling on the State Ethics Commission to extend their probe into the controversial bidding process for the right to run concessions at several state beaches.
Block asked the panel to look at a bid that was awarded to former Democratic Party Chairman David Caprio after the previous high bidder, State Representative Peter Palumbo, backed out from the process and then reappeared as Caprio’s choice to manage the operation.
Block’s campaign says that Palumbo had repeatedly bid on, and won, the right to provide concessions at two state beaches dating back to 2000, a time when he was serving as a State Representative and should have been barred from bidding on state contracts. He was awarded bids in 2000, 2002, and 2004.
“The Ethics Commission needs to look at how these contracts were awarded to a sitting State Representative when the ethics code prohibited legislators from doing this,” said Block in a press release. “This is a sad example of the culture of corruption in our state government, with the only voices raising objections to this being the occasional bidder who lost out to an insider and felt abused by the process.”
Block Cites Palumbo's History
In comments released on Tuesday, Block said that the state beach concessions appear to be a case of insider dealing.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“When it looks like the fix is in on state contracts, it keeps legitimate bidders from taking part in the process and that increases the costs for taxpayers,” said Block. “The only way we are going to bring new businesses and jobs to Rhode Island is to end the culture of corruption in Rhode Island government and that is what I am going to do.”
In 2001, Palumbo lost the state concessions contract at Misquamicut Beach to Polydoros Petrou and Earl Saudin. The state decided to extend the bidding period, an action the two men objected to. They argued against the extension in a letter to the state, saying that it was their “understanding that the changes…were made to accommodate Mr. Peter Palumbo.”
Block said the state claimed to have extended the bidding period in order to “encourage greater vendor participation.”
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