Losing Bidders Charge Favoritism In Toilet Contract
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Two losing bidders of a lucrative city contract to refurbish the city’s aged and dilapidated newsstands, bus shelters and public toilets claimed yesterday that the city showed favoritism and unfairness in awarding the winning bid.
Decaux, which teamed up with NBC Universal for the bid, and Clear Channel Communications, have filed a lawsuit against the city for awarding the billion-dollar “street furniture” contract to Cemusa, a Spanish company, in what they charged was a flawed process.
“This is a sham,” said Randy Mastro, an attorney representing Clear Channel and a former deputy mayor under Rudolph Giuliani. “Somewhere along the way, it got off track … and ultimately led to Cemusa being awarded the largest franchise ever awarded in New York City history.”
Mr. Mastro claimed the city allowed Cemusa to adjust its bid application several times, vaulting ahead of Clear Channel and NBC/Decaux.
The city denies the allegations.
