Tuesday morning, M.A.C. and Associates LLC filed a lawsuit against Siemens Industries based on a contract of work for the City of Jackson's water infrastructure project.
MAC and Associates says Siemens did not hold up to its full commitment of the project and they are seeking $37 million dollars in damages. Representatives say Siemens let another company use some of its workers.
Tuesday, on the steps of City Hall, MAC and Associates stated it is suing Siemens for fraudulent misrepresentation, breach of contract and interference with business relations.
The company was hired by Siemens to install water meters and do sewer work throughout Jackson, but as months passed the company says it stopped getting work.
"They brought in another Pedal Valve and gave Pedal Valve their own subcontract," said Robert Gibbs, an attorney with MAC and Associates. "There also workers of MAC that MAC paid for trained and Pedal Valve would take those workers and hire them."
The contract was initially for $20 million dollars but was changed to $19.3 million. Siemens said the scope of MAC's work was changed based on changes in the overall city project.
"There were some things that Seimens decided to take out of my scope of work and get with the other companies and it's strange that it only happens when minority companies are general contractors," said Marcus Wallace, CEO of MAC and Associates.
Siemens' agreement with the City of Jackson Equal Business Opportunity Plan says 58 percent of the construction on the project would be African American, which is why MAC was initially hired.
"They assured that they would mentor, train, manage and help get through this project," said Wallace.
"They took advantage of the Mayor, the council and citizens of this city and as a community activist, as an organizer, we will not tolerate it and that goes for any big business," said community activist, David Archie.
"All of the work as you know still has not been done," said Gibbs. "Hopefully the City of Jackson will get what they ultimately paid for."
Copyright 2016 MSNewsNow. All right reserved
Story idea or news tip? Email us at News@WLBT.COM or call 601-960-4426.
715 South Jefferson Street
Jackson, MS 39201