One of the Houston business owners charged with bribery following our KPRC 2 ‘DRAINED’ Investigation into Houston’s contract corruption scandal, is scheduled to receive more than $8 million this week. This is for work completed on an unrelated city project.
Joseph Nerie, owner of Nerie Construction, appears on this week’s City Council agenda, catching the attention of our investigative team. Houston officials have told us that defendants in the scandal are banned from city contracts and business.
You might remember Nerie was charged with bribery and tampering with government documents last year. Texas Rangers investigators say he paid Patrece Lee, a water maintenance manager, more than $77,000 over 15 months. During that time, emergency contracts awarded to Nerie’s company ballooned from $1 million to over $8 million.
Joseph Nerie walks with his attorney. He reached a plea deal in the waterline repair contract scandal first exposed by KPRC 2 ‘DRAINED’ Investigation. (Copyright 2024 by KPRC Click2Houston – All rights reserved.)
The Rangers say Nerie paid Lee through Cash App and personal checks.
In January, Nerie pleaded guilty to “gift to a public servant” after prosecutors dropped two more serious felony charges.
According to the city’s procurement website, Nerie Construction and three other businesses involved in the scheme are listed under debarment, meaning they cannot be awarded city contracts for the next five years.
So why is City Council voting to pay Nerie more than $8 million?
The city’s chief procurement officer told us Nerie Construction was already more than halfway through a paving and drainage project on the city’s northeast side when he was charged in the scandal. The project began in 2021 and was completed in November.
The $8.3 million is the amount the city owes the company for that work.
The chief procurement officer said Nerie will not be awarded any new contracts. But when Investigator Amy Davis asked if he has any other projects pending like this one, he said there is. Nerie was awarded another contract just last July.
And in court last month, Nerie’s attorney asked the judge to end his deferred adjudication early. The period is supposed to last through January 2027.
The judge hasn’t made any changes just yet.
We will be at today’s city council meeting where members are expected to vote on the latest payout to Nerie.
The ‘DRAINED’ Investigation started with emails and calls from viewers. Do you have a problem or a story you’d like to share?
Email Investigator Amy Davis at ADavis@kprc.com and Investigative Producer Andrea Slaydon at ASlaydon@kprc.com.
Copyright 2025 by KPRC Click2Houston – All rights reserved.