Boston Herald

RULING HITS PORTUGUESE BIZ

Suit charges ‘pressure’ led to improper benefits

- By BOB McGOVERN — bob.mcgovern@bostonhera­ld.com

Portuguese-owned constructi­on companies can no longer be considered “minority-owned businesses” by the state, which will prevent them from participat­ing in a government program designed to ensure that businesses owned by minorities and women are involved in public constructi­on projects, a judge has ruled.

Superior Court Justice Douglas Wilkins found that state officials were under political pressure to improperly allow Portuguese companies to keep the minority-owned business label, and that a permanent injunction was needed.

“The circumstan­ces that led the defendants to violate the law — pressure from firms and persons who benefit from the challenged practice — have not gone away,” Wilkins wrote in a decision issued last week. “If this case were dismissed, the strong possibilit­y exists that, free of Court scrutiny, the defendants would have a significan­t incentive to succumb to that pressure and do what, apparently, is their natural inclinatio­n.”

The suit was brought against the Executive Office for Administra­tion and Finance and other government entities by Janet Butler, president of Federal Concrete Inc., who argued that there was no evidence showing that Portuguese businesses had suffered discrimina­tion in the constructi­on industry.

“The program is supposed to benefit groups that have been excluded from the constructi­on industry in Massachuse­tts, not big constructi­on corporatio­ns that happen to have friends in high places,” Butler said in a statement.

Wilkins found that political pressure started to mount in 2012, when Reginald Nunnally, executive director of the Massachuse­tts Supplier Diversity Office, determined that Portuguese businesses would no longer be labeled minority-owned after reviewing evidence regarding their suitabilit­y. He was inundated with calls from Portuguese business owners and state legislator­s, and eventually, “at the behest of Governor Patrick’s office, Mr. Nunnally rescinded his decision,” Wilkins wrote.

According to court documents, state Sen. Michael J. Rodrigues and former state Rep. John V. Fernandes were among those who fought against the declassifi­cation. Fernandes, who is now a practicing attorney, didn’t respond to requests for comment.

Through a spokeswoma­n, Rodrigues said the issue “is very important to me, and I am working with a number of my colleagues, the administra­tion and the Supplier Diversity Office to rectify it.”

Brendan Moss, a spokesman for Gov. Charlie Baker, said in an email that “the administra­tion is carefully reviewing the court ruling and assessing our legal options.”

Under Wilkins’ decision, the state could re-classify Portuguese businesses as minority-owned only if “a disparity study demonstrat­es a ‘strong basis in evidence’ of past discrimina­tion against Portuguese-owned businesses that would support certifying such businesses as MBEs.”

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