The story starts out simply enough. In response to the bidding process, an investment group pooled together funds for the potential development for a new Registry of Motor Vehicles (RMV) building. Had they been successful, it would have resulted in a lucrative lease. Instead, the investment group is now suing the City of Springfield for $50 million lawsuit, 
claiming the city used unethical and corrupt practices. At issue is the application of governmental ethics in practice.
The investment group had a favorable bid and was awarded the contract to develop the new property through an accelerated bid because the old motor vehicles building had become dilapidated and dangerous. They would have purchased the old shopping center where the RMV is in place and re-developed it. The developers who supposedly won the bid was all set to go when the “City” inexplicably put the project on hold. They then withdrew the offer and awarded it to another developer for “no apparent reason,” save for one: the other developer had ties to the city. Procurement or contract awarding by governmental agencies or entities is a hot topic when it comes to governmental ethics.
Governmental Ethics: All in the Lease
The construction of the building itself and the development of the existing shopping center property, is not what would have made the big money for the development group, it was the lucrative lease to the city. It was worth more than $50 million to the new developers. This is where the scandal turns unethical from a governmental ethics perspective.
The lawsuit points to a questionable association between officials in city government and a company that developed a casino project at its North End. The city was faltering, and when a developer showed up to build the hotel and casino, it really boosted their standing with city officials. This is the company that inexplicably won the motor vehicle project. Scratch my back and I’ll scratch yours? That is not how governmental ethics is supposed to go.
The case also involves another connected business person with ties to the city who wanted to bid on the RMV project after losing out on the casino. He apparently holds a large portfolio of real estate investments and allegedly “has the ear” of many city officials. Money buys the ears of politicians and it seems from a governmental ethics perspective it’s hard to apply solid ethics when influence can benefit those who support your cause.
At first glance it appears as though the City of Springfield has its favorites and then there is “everyone else,” and that pretty much sums up the lawsuit. If true, if found to be true, when the case makes its way to federal court, it could lead to major upheavals in the way Springfield conducts its business. Keep in mind, it is a lawsuit and judgment has yet to be made.
Our Problem
All too often, we view government in terms of “them” and “us.” The illustration of Springfield above, is a perfect example of what can potentially occur to any city when taxpayers are “hands-off” while a mayor and a city council are permitted to make all of the decisions.
It is understandable that most taxpayers are too wrapped up in their day to day worries to attend city council meetings and that is why we have elections. However, as times and business have become more complex, there needs to be an additional layer of oversight and that is why ethics are so important and why ethics training for those elected to governmental positions is so important.
While elected officials usually sign ethics agreements, is that enough? I would submit that it isn’t. There must be ongoing governmental ethics training along with a system of ethical oversight to insure that bids, discussions and awards of contracts are open and transparent.
Whether or not the lawsuit being brought against Springfield, Massachusetts has merit is secondary right now to the suspicion and erosion of confidence that business is conducted there in such a manner.
The bridge between the citizenry and government is ethics. The lawsuit is a consequence of the suspicion of poor ethics in play. Should the lawsuit have merit, it is not just the politicians who will be affected, but every citizen who pays taxes.
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