Joshua Schneyer, M.B. Pell

(Reuters) – Balfour Beatty (OTC) Communities continues to pose a risk for the health and safety of military personnel and their families even though it pleaded guilty last year in defrauding U.S. governments and was fined $65million, according to a Senate investigation released Tuesday.

During their eight-month probe, Senate investigators said they found evidence of environmental hazards at two military housing communities, including mold, faulty gas furnaces, roofing leaks and asbestos concerns, according to the report released by the U.S. Senate’s Permanent Subcommittee on Investigations.

Senate staff claimed that they found inaccuracies with documentation of Balfour Beatty’s military housing maintenance. These were similar to the ones discovered in an earlier Department of Justice case. This led to the company plead guilty to defrauding America’s government in December 2013.

At the bases examined in the congressional probe – Army Fort Gordon in Georgia and Sheppard Air Force Base in Texas – Balfour Beatty’s housing management practices have continued to “put the health and safety of military families at risk,” the report said.

Balfour Beatty, in a statement on Monday said that the company hadn’t yet received the Senate report. He also stated that it was not aware of any inappropriate practices. A new compliance fee program has been implemented by the company, as well as new procedures for mold prevention.

“The company always responds to maintenance requests promptly,” the statement said.

Reuters reported in 2019 that Balfour Beatty employees had falsified Air Force maintenance records at Air Force bases in order to qualify for lucrative incentive fees payments. The service members were exposed to raw sewage, vermin and mold.

Air Force and Justice Department initiated an investigation into the Reuters reports.

The subcommittee findings were released ahead of a hearing scheduled for Tuesday, “Mistreatment of Military Families in Privatized Housing,” at which senators including Jon Ossoff, a Georgia Democrat who chairs the subcommittee, plan to hear from military members and question company executives including Balfour Beatty Communities president Rick Taylor.

Balfour-Beatty employees are asked to tell the subcommittee about their experience in Balfour beatty housing, and what health problems they think were caused by mold and other hazards. A hearing witness list indicates that the subcommittee plans to summon Balfour executives as witnesses to give evidence under oath.

Subcommittee stated that its investigation was based upon visits to military bases as well 11,000 pages of records including internal company communications work orders data. It also interviewed 12 military families. 11 former and current Balfour Beatty employees were interviewed. According to the report, 43,000 homes are owned by the company at 55 Army and Navy installations in the United States.

Balfour Beatty Communities are a British infrastructure conglomerate unit. Balfour Beatty Plc (BALF.L). This is just one of many major housing firms that have been serving as landlords at U.S. military bases since the beginning of a housing privatization program.