Editorial: Appearances really matter
The controversy surrounding spending practices of the Massachusetts Estuaries Program is the latest example of just how careful publicly accountable organizations have to be when spending taxpayer money, even with the best of intentions.
State Auditor Joseph DeNucci's office released a report Tuesday accusing the MEP - operated by the University of Massachusetts Dartmouth - of several questionable accounting practices, among them "questionable contract costs, no-bid contracts and a potential conflict of interest."
The main controversy centers on MEP's awarding of more than $800,000 in contracts to Applied Coastal Research and Engineering Inc., a Mashpee-based marine engineering firm, without going out to competitive bid. The audit further asserts a conflict of interest exists because MEP Principal Investigator Dr. Brian Howes, who was involved in contract procedures, has a personal and professional relationship with ACRE principal John Ramsey. The two scientists have collaborated in the past and Howes' for-profit consulting company, Coastal Environmental Associates Inc., shares an address with ACRE, the audit reports. Furthermore, the supervisor at UMass Dartmouth who approves subcontractor invoices for MEP also works for Coastal Environmental Associates.
As the audit states, neglecting to go to bid and awarding a public contract to a company with which the leader of the study has a relationship gives the appearance that favoritism may be in play and taxpayers may not have gotten the best deal possible.
In this case, it seems appearances are deceiving, but that fact does not blunt the major point: Public organizations must do everything possible to ensure all publicly funded projects are above board and taxpayer money is spent responsibly. It's unfortunate, but in a state with a history - distant and recent - of public corruption, anything less invites the kind of scrutiny and controversy a state audit brings, creating suspicion and potentially damaging the reputation of an organization and a project that may well serve the common good.
The Fall River Police Department made a similar mistake recently when it accepted nearly $25,000 to buy a police cruiser from a private company hiring off-duty officers to protect former Quaker manufacturing properties. While its intentions were genuine, the department opened itself to suspicion by accepting such a large donation from a private company seeking its services.
Indications are the MEP also is a reputable agency. It is conducting important scientific work that benefits the environment and public coffers. The estuaries project aims to protect and restore estuarine resources. The project examines the effects of nutrients - mostly nitrogen - on estuarine systems. It saves state and municipal money previously spent on implementation studies when a town is planning a wastewater treatment program. The MEP plugs data into a computer model to determine the impacts of the nutrients and how much an estuary system can take. The Pioneer Institute has lauded the project, estimating it will save municipalities $25 million to $35 million over the course of the project's six years.
The unique computer model was created by Howes and Ramsey, who are working on patenting the procedure. The state Department of Environmental Protection approved use of the model, according to UMass Dartmouth spokesman John Hoey. Since it was unique, a bid process would be pointless. As for the conflict of interest, Hoey said the university does not see the MEP's and ACRE's relationship as buyer-vendor, but rather as an instance of collaborating scientists. Such a relationship is common in scientific projects and was necessary in this case in order to use the computer model, he said.