Harris County prosecutors have charged seven people, including a former high-ranking city of Houston employee, in connection with an alleged bribery and kickback scheme involving millions of dollars in emergency water line repair contracts.
Prosecutors said Friday that Patrece Lee, a former public works project manager, steered a $4.5 million contract to a shell company she controlled and received kickbacks totaling $322,000 in exchange for sending business to at least four vendors. Prosecutors also alleged that Lee directed $400,000 of the $4.5 million contract to a shell company owned by her brother.
Lee, 45, was arrested Thursday and charged with one count of abuse of official capacity and four counts of bribery, all of which carry the potential for jail or prison time. Lee had not been formally arraigned on the charges as of Thursday afternoon.
The six other people, including Lee’s brother, also face felony charges ranging from abuse of official capacity, to bribery, to tampering with a government document. Prosecutors said the scheme ran from mid-2022 to late 2023.
“We expect public servants to serve and to get poorer, not richer, through their service, and for the public to benefit from the sacrifices that are required by public service,” Harris County District Attorney Kim Ogg said at a press conference Friday. “So, we don’t have a lot of empathy or mercy for those who would steal from the public out of their position of power given to them by the public.”
Attempts to reach Lee and the assistant public defender representing her were unsuccessful Friday evening.
The charges follow months of reporting by KPRC-TV, which first uncovered the connections between Lee and companies that received the contracts.
Houston Mayor John Whitmire held up the prosecution of Lee as an example of his administration combating public corruption and waste.
“We will go where the facts take us,” said Whitmire, who took office in January. “I can assure you that during my administration, whether its City Hall, METRO, any governmental body, the airport — wherever there are conflicts of interest and where an investigation shows corruption, we will be partnering with those agencies that are doing the investigation to see that people are held accountable.”
Whitmire also said he cannot ask Houston City Council for more money until his administration “can assure that every dollar is being honestly used to run city government.” Whitmire unveiled a $6.7 billion budget plan , which includes money for a long-fought settlement with the city firefighters’ union, earlier this month.
Ogg also took aim Friday at Whitmire’s predecessor, Sylvester Turner, declaring that the current mayor’s cooperation with her office “stands in stark contrast to the last seven years.”
Turner endorsed Ogg’s opponent, Sean Teare, in the March Democratic primary for the district attorney position, insinuating that Ogg continuously blamed others for issues in the prosecutors’ office and used her power as a political weapon. Teare easily defeated Ogg in the primary.
‘Larger and bigger deals’
Before her firing last year, Lee oversaw the city’s process of assigning water main repair contracts to vendors, according to a probable cause affidavit from a Texas Rangers investigator.
Lee was also in charge of finding additional vendors to do emergency repair work when there were too many water main breaks for the vendor roster to handle. Excessive heat and aging infrastructure often lead to a high number of breaks.
In addition, Lee recommended what vendors doing emergency repairs should be paid, the affidavit said.
Mike Levine, chief prosecutor of the District Attorney’s Office public corruption unit, said Lee and at least two other business owners created a system where Lee was essentially on the payroll as a consultant of companies that received contracts from the city and did business with Lee’s department.
“They did that in exchange for favorable treatment, faster payment, and larger and bigger deals with the city,” Levine said.
Investigators said five companies — Nerie Construction, Nerie Brothers Construction, TJ Cole Enterprises, CST Connections and Omega Engineering — each received five- to six-figure sums from the city of Houston over the past two years and paid money directly to Lee or to a company Lee owns. The owners of each company face charges ranging from bribery to tampering with a government document.
Lee is also accused of steering a $4.5 million contract to a shell company owned by her brother, Andrew Thomas. Houston’s Office of Inspector General began investigating after KPRC-TV uncovered the connection between Lee and Thomas late last year.
Whitmire referred that investigation to the Harris County District Attorney’s office, which brought in the Texas Rangers. Whitmire said the Office of Inspector General is still investigating. He added that he has concerns about how the office is operating .
Three former Houston Public Works employees, including Lee, have been fired in connection with the investigation. Prosecutors declined to identify the other two, saying more charges could follow.
‘We’re watching you’
Randy Macchi, chief operating officer of Houston Public Works, said additional safeguards have been put in place since Lee’s firing to prevent similar conduct. Large-scale change, however, will only be possible with the collaboration of all city departments.
“I think we have a lot to do. I think it’s beyond Public Works,” he said.
Five months into office, Whitmire is promising to crack on corruption and improve employee morale in city government.
“I want to say a word to all my department heads: We’re watching you,” Whitmire said. “Don’t even think about cutting corners, playing favorites or hiring relatives. Let’s run city business as transparent as possible. I will hold people accountable.”
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