Halting abuse of minority projects

NEWARK, NJ: New Jersey assemblywoman Loretta Weinberg (D) is leading a government effort to cut down abuses of the state's minority preferential program for PR and advertising contractors and subcontractors.

NEWARK, NJ: New Jersey assemblywoman Loretta Weinberg (D) is leading a government effort to cut down abuses of the state's minority preferential program for PR and advertising contractors and subcontractors.

NEWARK, NJ: New Jersey assemblywoman Loretta Weinberg (D) is leading a government effort to cut down abuses of the state's minority preferential program for PR and advertising contractors and subcontractors.

Weinberg said that the legislation was introduced because of reports that PR and advertising firms were securing state contracts by using the names of minority and women-owned businesses as subcontractors. She added that these subcontractors never received their portion of the new business and at times were unaware that they were used in the bid, because the state is not required to notify subcontractors of new business wins.

Calling such abuses fraud, Weinberg cited the two-year, dollars 7 million New Jersey State Lottery account that was won by Chester, NJ ad agency Grafica and the three PR subcontractors that it allegedly used in name only to win the account.

Al Bundy of New Jersey-based VNR firm Bundy Productions is currently in talks with attorneys to file a lawsuit against Grafica. New York boutique firm Spector & Associates filed a suit against the agency in May for wrongful termination of the Lottery contract.

Grafica has responded by filing a counter lawsuit alleging that Spector & Associates was fired because of failure to produce a crisis communications strategy.



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