The Michigan Chronicle
Women of
Excellence classes of 2020 and 2021 See page A6
Michigan Chronicle
Vol. 84 – No. 43 | June 30 - July 6, 2021
Powered by Real Times Media | michiganchronicle.com
Court Battle Intensifies Between Piston Group and MMSDC
Mayor Mike Duggan and Dr. Sonia Hassan Engaged to Wed Detroit Mayor Mike Duggan and Dr. Sonia Hassan have recently become engaged to be married. Dr. Hassan is Associate Vice President and Founder of the Office of Women’s Health at Wayne State University. “Sonia and I couldn’t be happier and we’re looking forward to building our lives together,” Duggan said. The two intend to be married in a small family ceremony at a date to be set this fall.
Vinnie Johnson, Piston Automotive Founder & Chairman (Credit: Piston Automotive Company website)
By Donald James Special to the Chronicle
Dennis Archer spoke during a press conference in Downtown Detroit Wednesday, June 23, about how he wants Detroit residents to vote “no” on Proposal P, a vote against Detroit City Charter recommendations. Photo by Sherri Kolade
Archer Speaks Against Detroit City Charter Revisions, Offers New Resolution By Sherri Kolade Dennis Archer, former mayor of the City of Detroit, isn’t writing off the controversial Detroit City Charter Commission’s recommendations, or how some of its ideas could benefit residents in desperate need of basic resources like water and internet access. But the attorney and respected businessman is against the Charter Commission’s recommendations and told residents to vote “no” on Proposal P come Tuesday, August 3. “We can use this moment to help people in need,” Archer said during a press conference Wednesday, June 23. He said that we need to find alternatives to the Commission’s recommendations that he and city officials
See NEW
RESOLUTION page A2
WHAT’S INSIDE
Wayne County Circuit Court Judge David Groner issued a restraining order on Monday, June 28, mandating that the Michigan Minority Supplier Development Council (MMSDC) temporarily return minority certification status to Piston Group, owned by former Detroit Pistons guard Vinnie Johnson, while litigation continues. Groner’s ruling comes several months after MMSDC pulled the certification from the auto supplier (Piston Group) and four of its subsidiaries. For 44 years, the non-profit MMSDC has helped certify Minority Business Enterprises (MBE) – such as Piston Group - develop their capacities and facilitate inclusive procurement opportunities. The Detroit-based MMSDC has more than 1,200 certified business owners and works with more than 300 corporate members. According to MMSDC, the certification criteria require a business to go through a process that verifies it as minority-owned, managed, and controlled. Additionally, a minority business must demonstrate that a person or persons of color own(s) at least 51 percent of the business enterprise, manage(s) its “dayto-day” operations, and operate(s) independently. Each MBE goes through the process of recertification annually. The decertification of Piston Group and its four subsidiaries by MMSDC, prompted Johnson to file a lawsuit to have his MBE status restored. In lawsuit court papers filed by Johnson and his Southfield-based Piston Group in May, it’s alleged that MMSDC and its president Michelle Robinson, vindictively, willfully, and wantonly,
How A Pandemic Shook the Wedding Industry
City.Life.Style. B1
$1.00
Group and its four subsidiaries simply do not have enough day-to-day involvement of minority persons in their senior management to meet minority business enterprise status and MMSDC’s standards. The Piston group has presented a lot of misinformation, some quite egregious, in the court filings and public statements. We have not yet had an opportunity to respond. We look forward to presenting all the relevant facts and circumstances at the appropriate time to the court and a jury, if the case proceeds that far.” In a statement released in May, the organization’s top executive said, “We find it unfortunate that a corporation that, for years, benefited from minority business advocacy has now chosen to sue the MMSDC rather than comply with rules that the organization applies to all of its member MBEs,” said Robinson, president and CEO of MMSDC. “However, MMSDC is in the business of certifying minority-owned businesses, not decertifying them without sufficient cause.” Robinson’s written statement further explained that decertification is rare, but is a process done under careful consideration when required. The decision to decertify is not made by MMSDC’s president and CEO but by a certification committee comprised of the organization’s corporate member representatives. The temporary order to restore the minority business status to Johnson’s businesses has vast ramifications, with future court proceedings and decisions determining whether Johnson’s companies will receive a more permanent minority certification status. Hundreds of millions of dollars are at stake. After
See VINNIE
JOHNSON page A2
Is Detroit’s Constitution at Stake? By Sherri Kolade
B rides and COVID:
or maliciously “decertified” the Johnson-owned businesses because white men primarily run its day-to-day operations. This hierarchy within the upper operational levels of Piston Group, according to MMSDC, is a violation of rules for minority certification. The lawsuit also alleges that Robinson has an ax to grind with Piston Group and has threatened to decertify the organization numerous times for such reasons as being upset that Piston Group hired an executive away from MMSDC, Johnson declining to donate $300,000 to an MMSDC initiative, and Johnson’s refusal to participate as a sponsor in the organization’s golfing fundraiser two years ago. The temporary ruling is a significant development for Johnson’s legal team. “We are delighted by the court’s decision,” Cinnamon Plonka, an attorney for Johnson’s Piston Group, said shortly after Groner’s ruling. “We will continue efforts to vindicate Mr. Johnson and establish to the court that Vinnie Johnson owns, controls, and manages Piston Group satisfying the necessary criteria to be certified as an MBE. The Piston Group is a minority-controlled business under every applicable standard. Today’s ruling will allow Mr. Johnson to continue to devote his energies to managing the day-to-day operations of all the Piston companies as a certified MBE and supporting our valued customers with outstanding quality, delivery, and service.” MMSDC, which reportedly facilitates more than $36 billion annually in economic output between corporations and certified MBEs, issued a statement following Groner’s June 28 ruling. “We are not pleased that a preliminary injunction was issued. The Piston
Michigan Chronicle Digital Anchor Andre Ash, right, interviews Detroit Charter Commissioner Nicole Smalls, center, and Rev. Horace Sheffield inside the Real Times Media Studio on Tuesday, June 22. The spotlight is on the future of Detroit’s City Charter Proposal on an upcoming Tuesday, August 3 ballot, and is a measure that is not without controversy. The proposal, and issues surrounding it were discussed during a heated debate Tuesday, June 22 at the Real Times Media (RTM) Studio 1452. During a Michigan Chronicle News Now segment with Digital Anchor Andre Ash, he spoke to Charter Commissioner Nicole Smalls and Rev. Horace Sheffield inside the studio as Attorney Lamont Satchel (representing the Commission) joined virtually.
The roughly 30-minute interview covered topics that Smalls discussed, including conversations surrounding what is not in the charter, including promises of “free water” in the city of Detroit. Sheffield, who brought a lawsuit challenging the City Charter procedures, discussed at length his positions, which included not taking anything away from Detroiters. “What is your issue with the procedure?” Ash asked Sheffield. Sheffield said that both Governor Gretchen Whitmer and State Attorney General Dana Nessel “weighed in” and said the City Charter had “illegal provision.” “There was a subsequent change that was not filed in time for that to be what was actually on the ballot — that was the basis of my claim: That we need to be real clear was going to be on the ballot,” he said,
adding that he thought there were some procedural issues. “Anybody who is in public office or runs for public office challenges petitions challenges the process — I knew at some point it would be on the ballot.” Governor Gretchen Whitmer rejected the proposed revised City of Detroit Charter in May and said the nearly 200-page document needs a review by the Attorney General’s (AG) office, WXYZ reported earlier. That AG review revealed
the current city charter draft had “substantial and extensive legal deficiencies,” according to the article. In Whitmer’s letter to the Charter Commission, she noted that some of the provisions in the revised charter would need the Detroit Financial Review Commission’s input, according to the article. That commission is the governing body that would have grounds to oversee Detroit’s finances if
See CITY CHARTER page A2