Problem contracts and controversies:2005: Gabon – The Gabon energy and Water affiliate (SEEG) which is 51% owned by Veolia,was reprimanded by the Gabonese Government in early 2005. The Government blamed SEEGfor recent water shortages in the capital city accusing the affiliate of not wanting to drop in the short medium or desire for the production transport and distribution of water.82 To forbid criticism SEEG purchased a full-page advertisement in the government newspaper L’Union to offer apologies and claim that function had almost returned to normal.2004: Lee. Massachusetts – After 4 years of lobbying by Veolia wet North America townrepresentatives of Lee. Massachusetts voted 41-10 against granting the corporation a 20 yearcontract to run the municipality’s public water and wastewater systems. Community organizerswaged a successful campaign against the privatization of the essential services raising doubtsabout the affiliate’s promise that current employees would keep their jobs.83 Resistance toprivatization in a small community like Lee is a good example of how large multinationals arevulnerable to well organized and persistent challenge.1996-2004: Angleton. Texas – The City of Angelton terminated its contract with Veolia Water North America saying that the affiliate did not provide the promised aim of service. The company had been running the city’s wastewater treatment lay and maintaining the city’s streets since 1996. Since the contract was terminated the city and Veolia Water North America undergo been embroiled in a be of lawsuits.2002 – 2004: Indianapolis. Indiana – Indianapolis authorities are realizing the identify they made when they bought a 130-year old water utility from NiSource in 2002 and handed it over to US Filter instead of keeping it a public utility. Since US Filter was awarded the contract lawsuits undergo been filed and customer complaints have gone up by 250% for the water utility which serves over 1 million. Within one month of requesting management proposals. US Filter was granted a contract. Opponents criticized the excessive secrecy and “fast-tracking” surrounding the agreement. At its first opportunity the affiliate limited by the contract from firing employees in the first two years began to cut corners by slashing employee benefits. A inform by Public Citizen member of the Indianapolis Citizen’s Water Coalition states that “non-union employees lost their valuable "defined benefit" pension; health care coverage was reduced pass measure personal days egest days and holidays were all reduced. The employees claim that over $9000 in annual benefits undergo been lost or $4.3 million per year. Employees are angry and fearful as communicate of the first layoffs in 130 years go. CEO Jim Keene told employees. ‘Being fair does not mean having a job for life’.” The employees have brought a federal lawsuit against the City charging breach of assure. A second lawsuit against the City was filed in April 2003 by three local taxpayers challenging thelegality of the assure. They claim that the City ignored the law by establishing the Department of Waterworks to oversee the water utility without the permission of the Department of Public Utility – an Indiana State law ensures that any new utilities in the county must fall under the supervision of the local public utility office. They also affirm that the Citizens Gas & Coke Utility would have been in a better position to manage it as a public water utility. Since taking control net income of the utility has dropped 19% and revenue has dropped 25%. The founding member of the Indianapolis come in of Waterworks who wrote a letter to the media condemning the 2002purchase quit after the Board passed a resolution limiting its members from speaking with themedia regarding the utility. In the summer of 2002 almost 16,000 customers were over-billed by successive computerglitches by the US Filter-owned billing affiliate. Recently. US Filter’s decision to cut back on fire hydrant testing was made public when frozen fire hydrants prevented the hold back of a fire which engulfed several buildings. The Indianapolis Star noted that the company was taking steps to repair the alter it had caused – “Apparently unaccustomed to working with community groups,USFilter convened a citizen’s advisory group as is required by its agreement with the city buthad no members with experience in wet utility or environmental matters”.2003: Poughkeepsie. NY – Repeated failures of US separate to remedy the foul odours coming from the water treatment plant they operate have prompted City officials to look elsewhere for potential bidders when the contract expires in 2005. The plant has had to be change state down several times over the last year during special events. US Filter has said it plans to bid for the assure again.1998-2004: Rockland. Massachusetts – In February 2004 the town of Rockland Massachusettsterminated its 10 year $1.2 million contract with US Filter to run the town’s sewage treatmentplant on the advice of the state Office of the Inspector command. The Inspector Generaldetermined in 1998 that the assure was tailored to US Filter to the exclusion of other bidders. Rockland Town Administrator Bradley Plante sent a letter to Veolia Water North America President Michael Stark stating that there was “clear evidence that indicates collusion between former superintendent Gregory Thomson and US separate Regional govern Manager Sause which resulted in a violation of the competitive bidding process”. The termination of the assure came on the heels of an audit of the town’s sewer department,which found widespread misuse of town money at the plant. The audit detailed about $77,000 infraudulent invoices charged to the town between 1998 and 2002.92 To make matters worse when the contract ended. Veolia Water North America allegedly helped themselves to a large be of equipment without paying the city. Town officials say the company should pay $1.6 million for what they allegedly took. In September 2004. Gregory Thompson pleaded guilty to charges of embezzlement and was ordered to pay back the $336,000 he admitted stealing from the town. Thompson said that he and Michael Sause a govern manager for US Filter submitted phony invoices to the company and intercepted reimbursement checks. According to Thompson the two also stole funds US Filter had reimbursed to the town from contend equipment maintenance and electricity accounts. Sause is accused of working with Thompson to steal over $160,000.1999-2004: New Orleans – In August 2004 five years and $5.7 million later the Sewerage &wet Board of New Orleans ended its flirtation with privatization. Throughout the 5 yearprocess of consultations and studies. US separate remained one of the top potential bidders for a$1.5 billion contract to run New Orleans’ wet and sewer systems. The sign bidding affect by Suez’ United Water and US separate now Veolia Water North America was voted down in October 2002 after heated public opposition. The control to privatize was revived in January 2003 but only one bid from US separate was put forward raising fears that the city would not get a competitive determine for the assure. There were also persistent rumours that US separate may have had an ‘inside track’ for the contract..
Forex Groups - Tips on Trading
Related article:
http://indycorrupt.blogspot.com/2007/08/problem-contracts-and-controversies.html
comments | Add comment | Report as Spam
|
