Siemens suit moving forward

By ANTHONY WARREN,

The city of Jackson has filed a lawsuit against Siemens.

Today, the city filed suit in Hinds County Circuit Court against Siemens and the subcontractors who worked with the firm as part of a $91 million overhaul of the city’s water system.

The news comes days after the Sun learned that some 35,500 faulty water meters had been installed as part of the contract, and weeks after Mayor Chokwe Antar Lumumba announced the city was looking into taking action against the firm.

According to court documents, “this case involves a massive fraud orchestrated by Siemens under the guise of an energy performance contract promising $120 million in guaranteed savings for the city. Siemens was paid $90 million to install a new automated water meter and billing system and to make repairs to the city’s water treatment plant and sewer lines.

The city goes on to state that Siemens “committed fraud with respect to who was performing the work on the project, what the system would do, and what savings the system would generate, among other things.”

Documents further state that the Siemens work has resulted in $225 million in losses for the city.

“The substantial majority of the purported 'savings' under the contract are phony, assumed amounts that are not measured against actual savings or revenue realized by the city,” the city’s complaint states. “Siemens represented that it would structure the agreement to comply with energy performance contracting requirements, but it intentionally omitted any true performance guarantees or energy savings in the contract itself.”

An assessment of the Siemens work conducted by West Monroe Partners last year showed that

The case was filed today in Hinds County Circuit Court.

Other firms named in the case include Chris McNeil, U.S. Consolidated Inc., M.A.C. & Associates LLC, Invision IT Consultants LLC, Garrett Enterprises Consolidated, and John Does 1-10. Other contractors, including Mueller Systems and Origin Consulting, were not named in the suit.

Officials with Siemens did not immediately respond for comment.

Click here to read a copy of the suit. https://www.northsidesun.com/sites/default/files/Siemens%20suit.pdf

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