Trash collector Recology to reimburse nearly $100 million to San Franciscans

SAN FRANCISCO – Waste management company Recology will reimburse interest payers in San Francisco nearly $ 100 million overcharged under the supervision of a former public works director under investigation for corruption, prosecutors said Thursday.

As part of a deal with the city, the company, which has the monopoly to transport and recycle waste, will reimburse interest payers for overpayments and interest fees of $ 94.5 million. Beginning April 1, the city will begin receiving a $ 7 million severance payment and reducing its waste rate for residential and commercial buildings, prosecutor Dennis Herrera said.

In 2017, Recology teamed up with former public works director Mohammed Nuru to increase rates, which have been high over the past four years, Herrera said.

“While interest payers were tearing their wallets, Mr. Nuru asked for money for lavish parties from the company he was supposed to regulate. His behavior was outrageous and should not and will not be tolerated, ”said Herrera.

Federal prosecutors accused former Recology manager Paul Giusti in November of bribing Nuru with more than $ 1 million through several nonprofits.

Nuru resigned last year after being charged with fraud and lying to the FBI. Prosecutors claim he took thousands of dollars in gifts and cash from contractors.

Recology said in a statement that it has already implemented measures to improve its “compliance policies, training and procedures” and has appointed a new CEO and Chairman of its Board of Directors.

“We believe in the current leadership of Recology and have taken steps to enhance the company’s commitment to a culture of service and compliance,” said Christa Steele, chairman of the company’s board of directors.

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