State Investigation Finds Smith Reynolds Airport At Fault

WINSTON-SALEM - WXII12.com

A state investigation has found Smith Reynolds Airport at fault for not making sure contractors were paid for their work.

The North Carolina Department of Transportation Office of the Inspector General released its findings Tuesday.

WXII reported in August that the airport hired Durham-based Mainline as general contractor to work on a runway extension project at the airport. But Mainline filed for Chapter 11 bankruptcy in September, and many of the sub-contractors hired by Mainline to do the work said they were never paid in full.

The project was funded by a federal grant requiring that a certain number of disadvantaged business enterprise contractors be hired.

"Based on the information received and reviewed to date, the conclusion of the NCDOT-OIF is that Smith Reynolds Airport did not fulfill its responsibilities under the grant agreement regarding DBE prompt pay," the report read.

Disadvantaged business enterprise, among other criteria, must be comprised of mainly socially and economically disadvantaged individuals.

The report said investigators weren't able to determine if Mainline's inability to pay the contractors stemmed from a cash flow issue or another reason, but noted that the responsibility for the payments being made rested with Smith Reynolds.

A call to Smith Reynolds seeking comment Tuesday afternoon wasn't immediately returned.

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