One of the military’s largest private housing contractors continued to mistreat service members living in its housing units even as the contractor was under investigation, a Senate panel found.
The Senate Homeland Security and Governmental Affairs’ Permanent Subcommittee on Investigations (PSI) says that Balfour Beatty Communities continued to engage in many of the same misconduct after 2019, even when it knew it was under investigation by the Department of Justice.
The panel, chaired by Sen. Jon Ossoff (D-Ga.), released a report detailing the allegations and held a hearing featuring testimony from servicemembers and representatives for the company.
If Balfour sounds familiar: Balfour, which operates housing communities at 55 military bases across the country, ultimately pled guilty to defrauding the military late last year.
It was ordered to pay over $65 million in December 2021 after pleading guilty to defrauding the Army, Air Force and Navy by submitting false reports to get performance bonuses between 2013 and 2019.
The report: The 51-page report comes after PSI investigated the allegations for eight months. The panel focused its investigation on Fort Gordon in Georgia and Sheppard Air Force Base in Texas.
Among other things, the report found that Balfour’s staff frequently ignored or delayed responding to urgent requests from military families to address conditions such as mold and roof leaks at Fort Gordon. In several cases, these delays led to families seeking care for skin conditions and respiratory symptoms.
The panel also found inaccuracies and omissions in Balfour’s internal work order database, which the military services use in-part to determine the company’s performance award fee.
Panel hears from service members: Two U.S. service members, a military spouse and a military housing advocate testified before the panel on Tuesday to discuss their experiences with Balfour.
Capt. Samuel Choe, who is currently stationed at Camp Humphreys, South Korea, flew in to share his experiences living in a Balfour-managed home at Fort Gordon from 2019 to 2021. He alleged that the company ignored mold growing in his home, causing his 8-year-old daughter to live with severe eczema.
Tech Sgt. Jack Torres of the Air Force testified that Balfour repeatedly ignored mold that was growing in his home and said he had been displaced twice because his concerns were not taken seriously.
Balfour defends itself: In a separate panel, company representatives Richard Taylor and Paula Cook were confronted about the testimony they heard and defended the steps Balfour has taken to improve amid the $65 million settlement.
Taylor, who is the president of Facility Operations, Renovation and Construction at Balfour, told the panel that while things can go wrong, he rejects the notion that the issues detailed in the panel’s report are systemic.
“What’s important for us is that we understand where our shortcomings are and we take action to correct those deficiencies,” he said.