Name: Murphy terminates Academy Bus contract, calls on NJ Transit to investigate
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Murphy terminates Academy Bus contract, calls on NJ Transit to investigate

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NorthJersey.comView CommentsGov. Phil Murphy vetoed a contract awarded to Academy Bus earlier this month by the NJ Transit board, according to a letter sent to NJ Transit officials on Wednesday.Murphy said the reason was because of the recent court case , a company accused of defrauding NJ Transit $15 million in an alleged no-show bus scheme. On the day Grewal filed the notice to intervene, the to an affiliated Academy company, also named in the Grewal case."Given these allegations of fraud raised in the Complaint, NJT must investigate what, if any, impact these allegations may have on the award of this contract for Middlesex County service," the governor's letter said."Additionally, in light of these allegations, NJT must examine the overall performance of Academy under their existing contracts with NJT in order to determine if that will have any impact on this potential contract award."The board, according to Murphy, was unaware of the allegations when they approved the contract Nov. 12.It's unclear who at NJ Transit is supposed to conduct that investigation. Earlier this week, a now-retired NJ Transit internal auditor , concerns and recommendations raised by the watchdog department over the years, including creating internal controls to measure the performance of contracted bus carriers.Jerrel Harvey, a Murphy spokesman, declined comment on the accusations made in the internal auditor's letter.Murphy's letter was distributed to NJ Transit board chair Diane Gutierrez-Scaccetti, who is also the state transportation commissioner; NJ Transit President and CEO Kevin Corbett; Parimal Garg, chief counsel to the governor; and Brian Wilton, deputy chief counsel to the governor's authorities unit and the governor's representative on the NJ Transit board.Wilton was for a time the . The audit committee was also highlighted in the former internal auditor's letter for lacking engagement and rarely asking questions about issues brought to their quarterly meetings.NJ Transit said in a brief statement, "NJ TRANSIT will be evaluating options in light of the Governor’s veto."The contract was set to go into effect in January.Colleen Wilson covers the Port Authority and NJ Transit for NorthJersey.com. For unlimited access to her work covering the region’s transportation systems and how they affect your commute,&nbsp;please subscribe or activate your digital account today.&nbsp;Email:&nbsp;&nbsp;Twitter:&nbsp;&nbsp;View Comments

NorthJersey.comView CommentsGov. Phil Murphy vetoed a contract awarded to Academy Bus earlier this month by the NJ Transit board, according to a letter sent to NJ Transit officials on Wednesday.Murphy said the reason was because of the recent court case , a company accused of defrauding NJ Transit $15 million in an alleged no-show bus scheme. On the day Grewal filed the notice to intervene, the to an affiliated Academy company, also named in the Grewal case."Given these allegations of fraud raised in the Complaint, NJT must investigate what, if any, impact these allegations may have on the...

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Colleen Wilson

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Murphy terminates Academy Bus contract, calls on NJ Transit to investigate

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