Recology to return customers $ 94.5 million for fees Mohammed Nuru helped set


San Francisco residents will recoup nearly $ 100 million in overpaid garbage collection fees after an investigation by the City Attorney’s Office detailed how waste management company Recology incorrectly raised its prices in the past four years. City Attorney Dennis Herrera said Thursday morning.

The civil settlement is the latest sequel to an extensive saga of corruption at City Hall centered on former Director of Public Works Mohammed Nuru, other city officials, contractors and non-profit groups.

Nuru played a key role in the rate setting process for Recology. The results of Herrera’s investigation and a separate federal investigation allege that Nuru accepted bribes from Recology in exchange for allowing the company to increase its rates. A former Recology executive was later fired and arrested in November in light of those allegations.

As part of a negotiated settlement with the city, Recology will reimburse taxpayers $ 94.5 million in surcharges and interest fees, and will also begin reducing its residential and commercial waste rates effective April 1. The benefits total more than $ 100 million for San Francisco Recology customers, and the average household is expected to receive a rebate of about $ 190, authorities said.

“With this legal action, we are completing San Francisco taxpayers and sending a clear message that privacy with regulators will not be tolerated,” Herrera said in a statement. “Mohammed Nuru may have had his challenges keeping the streets clean, but he clearly excelled in cronyism, illicit funding and indifferent oversight.”



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