A STATE AUDIT says the Massachusetts Convention Center Authority violated a number of laws and its own procurement policies, including by failing to secure board approval for a no-bid media contract and extension with Gray Media and a $1.2 million settlement and accompanying non-disclosure agreement with an employee alleging racial discrimination.
Auditor Diana DiZoglio said many of the violations uncovered by the audit were referred to law enforcement agencies for review. The auditor’s press release said she uncovered “disturbing, unlawful practices.”
Most of the issues cited in the report occurred on the watch of a management team headed by David Gibbons and a board dominated by appointees of former governor Charlie Baker. Gov. Maura Healey after she took office overhauled the board, which installed a new management team, headed by acting executive director Gloria Larson. The authority on Monday issued a statement saying it has already made progress in “several areas where the MCCA’s previous management did not meet expected standards.”
Many of the audit findings focused on the failure of the convention center authority to comply with internal practices and policies, the state public records law, and other laws and regulations. The authority oversees the Boston Convention and Exhibition Center, the adjacent Lawn on D, the Hynes Convention Center in Boston’s Back Bay, and the MassMutual Center in Springfield.
According to the audit, Gray Media was hired by Gibbons under an $8,500-a-month, no-bid contract running from June 2018 to May 2020. That contract was then unilaterally extended a year at a time through May 2023.
“Circumventing the procurement process may result in, and itself may constitute, inappropriate or illegal behavior on the part of public officials,” the audit said. “By extending contracts past the allowable three-year period, without board approval, MCCA cannot regularly ensure that it receives services from the most appropriate vendors that offer the required goods or services at the lowest available price.”
Rob Gray, the founder of Gray Media, said he was not aware his company’s contract was any different from those of previous or current media consultants. “As a vendor, we signed a contract provided by the authority’s chief legal counsel,” he said.
The audit also raised concerns about five settlement agreements negotiated with employees of the authority between January 1, 2018, and December 31, 2022. All of the agreements included non-disclosure, non-disparagement, confidentiality, or similar clauses that have been a major concern of DiZiglio’s. The audit said the agreements were not reviewed by the convention center’s board and should have been filed with the state comptroller.
In the audit, the authority said it is revising its policies regarding settlement agreements to increase transparency but noted that, as a quasi-public authority, it is not required to file its agreements with employees with the comptroller.
A November 2019 settlement with one human resources employee was for $1.2 million to settle claims of racial discrimination. Since the settlement amount exceeded $250,000, the audit said, state law and the convention center authority’s own bylaws require approval from the convention center authority’s board, which did not happen.
DiZoglio said there needs to be much greater transparency around settlement agreements and the confidentiality clauses usually contained in them. “You can’t fix an issue if you don’t know the problem exists,” she said.
