Brownsville Herald
A large construction payment made by the Brownsville Public Utilities Board (BPUB) to the wrong party is currently under investigation by state and federal authorities.
The Cameron County District Attorney’s Office confirmed on Wednesday that it was investigating the incident.
Reports have swirled regarding the alleged missing $1.3 million since March, when a local blog reported the board intended to make the payment to Noble Texas Builders’ account but sent it to the wrong recipient after a person claiming to represent Noble allegedly called and informed BPUB the company had switched banks.
Officials have confirmed that a payment was sent to the wrong party, but declined to provide details.
Noble collaborated with ERO architects to construct BPUB’s new Annex Building, part of a $16.9 million project next to the board’s administrative office, which broke ground in September.
Rene Capistran, Noble’s president and CEO, said on Thursday he was uncertain whether BPUB received the alleged phone call but confirmed that the company submitted for payment on the ongoing project, contacting the board when they noticed it hadn’t been funded.
“When we contacted PUB, they informed us that the money had been deposited to the account. I don’t know the facts of where it went, but it wasn’t our account,” he said.
According to Capistran, Noble is cooperating with local, state, and federal law enforcement in the investigation. He verified that the board issued Noble a second check around a week later, for the same amount, which he estimated at $1.2 million.
An item up for vote on an April 13 board meeting agenda sought to grant BPUB General Manager and CEO John Bruciak permission to petition the Texas Attorney General’s Office to suspend the applicability of the Public Information Act requirements due to the state-wide disaster declaration. BPUB confirmed last month that it was still accepting and would work to fill such requests.
The board’s Community and Public Relation’s Coordinator Cleiri Quezada said the measure was intended to give BPUB the ability to stop filling records requests if necessary due to shelter in place and other requirements forcing staff to work remotely. On Thursday, Quezada said the board was working to prepare a statement regarding the missing money. As of press time, the statement had not been received.
The Brownsville Herald requested records from BPUB regarding the initial payment, an internal audit, and a second payment that was allegedly approved after Noble contacted the board about the missing money. On Thursday, special counsel for BPUB sent a copy of a letter addressed to Ken Paxton which determined that a draft audit regarding a special investigation into an ACH fund transfer and an FBI Internet Crime Complaint referral form receipt confirmation should not be released to the public at this time.
“This auditor’s report, as of the date of the request until present, has not been finalized and therefore is an “audit working paper” that was prepared by the BPUB Audit Manager for the BPUB Audit Committee and should not be released,” the document stated. “BPUB understands that this argument is temporal and that once the audit is finalized, the report would be subject to being released if it did not fall under another exception.”
The records request revealed that the ACH fund transfer serving as the basis for the Audit Manager’s report was referred to the FBI for a criminal investigation.
“The FBI has received the report and based on communication with FBI Agent Nicholas Myers, the matter is being investigated. It is BPUB’s position that any release of report or information requested at this time would interfere with the detection and investigation of this matter.”
A large construction payment made by the Brownsville Public Utilities Board (BPUB) to the wrong party is currently under investigation by state and federal authorities.
The Cameron County District Attorney’s Office confirmed on Wednesday that it was investigating the incident.
Reports have swirled regarding the alleged missing $1.3 million since March, when a local blog reported the board intended to make the payment to Noble Texas Builders’ account but sent it to the wrong recipient after a person claiming to represent Noble allegedly called and informed BPUB the company had switched banks.
Officials have confirmed that a payment was sent to the wrong party, but declined to provide details.
Noble collaborated with ERO architects to construct BPUB’s new Annex Building, part of a $16.9 million project next to the board’s administrative office, which broke ground in September.
Rene Capistran, Noble’s president and CEO, said on Thursday he was uncertain whether BPUB received the alleged phone call but confirmed that the company submitted for payment on the ongoing project, contacting the board when they noticed it hadn’t been funded.
“When we contacted PUB, they informed us that the money had been deposited to the account. I don’t know the facts of where it went, but it wasn’t our account,” he said.
According to Capistran, Noble is cooperating with local, state, and federal law enforcement in the investigation. He verified that the board issued Noble a second check around a week later, for the same amount, which he estimated at $1.2 million.
An item up for vote on an April 13 board meeting agenda sought to grant BPUB General Manager and CEO John Bruciak permission to petition the Texas Attorney General’s Office to suspend the applicability of the Public Information Act requirements due to the state-wide disaster declaration. BPUB confirmed last month that it was still accepting and would work to fill such requests.
The board’s Community and Public Relation’s Coordinator Cleiri Quezada said the measure was intended to give BPUB the ability to stop filling records requests if necessary due to shelter in place and other requirements forcing staff to work remotely. On Thursday, Quezada said the board was working to prepare a statement regarding the missing money. As of press time, the statement had not been received.
The Brownsville Herald requested records from BPUB regarding the initial payment, an internal audit, and a second payment that was allegedly approved after Noble contacted the board about the missing money. On Thursday, special counsel for BPUB sent a copy of a letter addressed to Ken Paxton which determined that a draft audit regarding a special investigation into an ACH fund transfer and an FBI Internet Crime Complaint referral form receipt confirmation should not be released to the public at this time.
“This auditor’s report, as of the date of the request until present, has not been finalized and therefore is an “audit working paper” that was prepared by the BPUB Audit Manager for the BPUB Audit Committee and should not be released,” the document stated. “BPUB understands that this argument is temporal and that once the audit is finalized, the report would be subject to being released if it did not fall under another exception.”
The records request revealed that the ACH fund transfer serving as the basis for the Audit Manager’s report was referred to the FBI for a criminal investigation.
“The FBI has received the report and based on communication with FBI Agent Nicholas Myers, the matter is being investigated. It is BPUB’s position that any release of report or information requested at this time would interfere with the detection and investigation of this matter.”
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