7 Companies Barred From San Francisco City Contracts In Wake Of Public Works Scandal

SAN FRANCISCO (CBS SF) -- Five executives and the seven companies they control have been barred from obtaining city contracts in the wake of the public corruption scandal involving former San Francisco Public Works Director Mohammed Nuru and former Public Utilities Commission General Manager Harlan Kelly.

City Attorney Dennis Herrera announced the suspension orders Monday.

"Now we have another tool to keep government clean, and we're going to use it," Herrera said. "Corruption will not be tolerated in our city. Crooked public officials or people who seek to bribe their way into city contracts fail our residents, erode public trust and undermine the exceptional work done by thousands of San Francisco public servants every day."

"If there is enough evidence to charge someone with a crime, they should not be receiving city grants or contracts while their case is being decided," he continued. "It's that simple."

Herrera said the now-suspended contractors and their companies were implicated in the public corruption investigation of Nuru and Kelly.

The suspension orders prevent the contractors from seeking or receiving any contracts or grants, directly or indirectly, from San Francisco while their criminal cases are being decided.

Herrera issued the suspension orders against:

• Nick James Bovis and his company SMTM Technology, LLC
• Alan Varela and William Gilmartin and their company ProVen Management Inc.
• Florence Kong and her companies SFR Recovery Inc. and Kwan Wo Ironworks Inc.
• Wing Lok "Walter" Wong and his companies W. Wong Construction Co., Inc., Green Source Trading, LLC, and Alternate Choice, LLC

The suspension orders are the first of their kind. The ability to issue suspension orders was created by legislation that Herrera introduced in August at the Board of Supervisors.

The city legislation -- which into effect on Dec. 25, 2020 -- allows contractors charged criminally, civilly, or administratively to be suspended from receiving public funds while the case against them is being decided. .

All of the individuals Herrera issued suspension orders against have been charged criminally by the U.S. Attorney's Office as part of the Nuru and Kelly investigations.