Houston Council Members may pay a construction company whose owner pleaded guilty in a waterline corruption scandal exposed in KPRC 2’s “DRAINED” investigation.
Joseph Nerie, owner of Nerie Construction, paid Houston Water Maintenance Manager Patrece Lee $77,000 after she awarded his company repair contracts worth up to $8 million, 2 Investigates revealed.
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Nerie received deferred adjudication for his role in the scheme. Now, he is requesting $403,000 from the city for work completed before his indictment.
In August, council members delayed paying the final bill from Nerie Construction. However, Mayor John Whitmire said the work was tied to federal Housing and Urban Development (HUD) funds.
If the city does not pay Nerie, HUD may seek to recover as much as $9 million from Houston.
Council is expected to vote on the payment Wednesday, January 21st. We will let you know what happens.
Background: KPRC 2’s ‘DRAINED’ investigation exposed water billing and contract corruption
For more than three years, KPRC 2 Investigates, led by Amy Davis, has uncovered serious problems in Houston’s Public Works water department. These issues caused thousands of residents to face inaccurate water bills and overcharges.
The investigation revealed overbilling, faulty water meters, and mismanagement of city contracts. These findings led to the arrest and indictment of seven people, including Patrece Lee, the former Public Works manager at the center of the corruption scandal.
Lee was charged with organized criminal activity, abuse of official capacity, and bribery. She has been behind bars since May 2024 after pleading guilty and receiving a 10-year prison sentence.
SEE MORE: Everything you need to know about the ‘DRAINED’ KPRC Investigation