Ashley Murray
December 27, 2018
Allegations of widespread fraud in the construction industry led Pittsburgh City Council on Thursday to vote 8-0 to create a new task force, but there wasn’t unanimity on the nature and degree of the problem.
“Basically we know that this activity is happening and we’re losing tax revenue from it,” said the bill’s sponsor, councilman Corey O’Connor, though he did not have specific figures.
The resolution, co-sponsored by councilwoman Darlene Harris, directs the mayor to convene representatives from council, and the offices of the city controller, Allegheny County district attorney, as well as trade unions and the state’s Department of Labor and Industry. It would explore tax fraud – sometimes referred to as paying people under the table – and other “unfair” practices within the city’s construction industry.
Past approaches to construction industry fraud – and even some recent pronouncements by advocates for the task force – have referenced undocumented workers. Thursday, though, backers emphasized that the bill isn’t about immigration.
Members of the United Brotherhood of Carpenters gathered in Council Chambers Thursday to support the bill’s passing.
“We have people getting paid cash on the job sites, and that’s not fair,” said Steve Mazza, representative for the Keystone Mountain Lakes Regional Council of Carpenters, based in Collier. “I have to pay taxes. Everybody should be paying taxes. Why is that being unchecked?”
Mr. Mazza’s union claims that Pennsylvania has lost hundreds of millions of dollars in taxes because of industry fraud, though it did not detail that figure Thursday.
The scope of loss for the city is unclear.