Millions of dollars in federal funding for road projects in Rhode Island has finally found its way into the hands of the state Department of Transportation.
The funds were put on hold in September 2004, after federal officials accused the state’s DOT of “flagrant unaccountability” of one of its contracted companies, WPRI-TV reported.
The company in question, Shire Corp., was accused of not paying its subcontractors and suppliers on time, despite the fact that they were receiving money from the DOT and, subsequently, the Federal Highway Administration, the Providence Journal reported.
The money was released to the state in March. Federal Highway Administration official Lucy Garliauskas told the Journal that Shire had paid most of its bills by this point, and the administration handed over the money.
According to media reports, the cash lockdown could have cost the state tens of thousands of dollars, since they had to put off certain construction projects, including safety repairs on Route 95.
For projects that were already in the works, the state had to put forth the money itself without the federal funding – or its invested interest – to lighten the load. The Journal reported that the state pays only about 20 percent of highway and bridge projects, with the other 80 percent coming from the feds.