Massport director admits mistake
Citing job link, critics rap hiring

By Sean P. Murphy, Globe Staff, 7/26/2001

Massachusetts Port Authority executive director Craig Coy yesterday said he made a mistake when he failed to publicly disclose his prior business relationship with the man he selected to be his deputy executive director.

At a public meeting last week, Coy urged the Massport board to approve the hiring of George Hertz to the $190,000 job. When asked by a board member about Hertz's background, Coy described several jobs Hertz held, but neglected to reveal that Hertz played a role in hiring Coy in 1999 as CEO of a Waltham-based company, HR Logic Inc.

Coy said yesterday through spokesman Jose Juves that he erred.

''As someone recently returned to public service,'' Juves said, Coy ''acknowledges the need to be sensitive to perceptions.''

Asked if Coy were acknowledging he made a mistake, Juves said: ''Yes.'' Coy declined an interview.

Coy's appointment of Hertz, and his failure to make their connections public, has set off intense criticism and created tension at an agency eager to shed its image of cronyism.

Yesterday, four Democratic candidates for governor and Republican candidate Mitt Romney criticized the way the Hertz appointment was handled.

Warren Tolman called the appointment a case of ''I'll scratch your back, if you scratch mine,'' and questioned whether the Massport board has the will to thoroughly scrutinize the appointment.

Former US Labor Secretary Robert Reich said the Massport board should take another look at the hiring of Hertz.

''Whenever you have old cronies recommend one another for important positions, there is the possibility that favors are being done for past favors... and that raises questions whether they will be vigilant in monitoring each other,'' said Reich.

The Sept. 11 terrorist attacks created public criticism and intense focus on political patronage appointments at Massport. The two planes that slammed into the World Trade Center departed from Logan Airport, which Massport runs.

Coy was hired in April at a salary of $250,000 as part of an effort to bring private sector-style management to the bureaucracy. Besides Hertz, Coy recently hired Scott Milam, an acquaintance from his downtown Boston neighborhood, as director of corporate planning and analysis at a salary of $100,000.

Senate President Thomas F. Birmingham, another gubernatorial candidate, said
yesterday: ''This reinforces our gravest concerns about Massport. Patronage trumps professionalism.... It turns out Massport cannot even be trusted to disclose basic relevant hiring information.

Shannon O'Brien, another candidate, said: ''The decision to fill two high-level positions with individuals who have close ties to the executive director raises questions about whether there truly is a new approach at Massport.''

Romney echoed that statement.

''It's wrong to hire politically connected individuals who add no value. It's why our state government is wasteful and inefficient.''

At a public Massport board meeting last week, Coy asked for, and won, approval to hire Hertz. Coy talked about Hertz's past executive positions with Fidelity Capital, Advanced MobileComm, and Boston Communications Group, but did not mention that Hertz was on the board of directors of HR Logic, when the board decided to hire Coy as CEO. Coy served for two years at HR Logic, a company that provides payroll, health and other benefit services to
small- and medium-sized firms.

At the Massport board meeting, Coy said he selected Hertz after ''an open process'' that included sifting through ''an untold number'' of resumes provided to him by an executive recruitment company, Russell Reynolds.

''I interviewed seven candidates and I would like to make a offer'' to Hertz, Coy said at the meeting.

When asked if board members knew prior to the meeting of the past relationship, Juves yesterday said reference to the past relationship was contained in a package of documents furnished to board members prior to their meeting. He said the document would not be made public because it was a confidential ''personnel'' matter.

Despite the criticism, Juves said there are no plans to reconsider Hertz's appointment.

Massport board chairman John Quelch declined comment.

This story ran on page B1 of the Boston Globe on 7/26/2001.
© Copyright 2002 Globe Newspaper Company.
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