Dive Summary:
- Officials in Nebraska canceled a contract with Shredding Solutions, Inc. due to its failure to pay the state over $60,000 for thousands of tons of office paper collected from government buildings.
- The recycling company's agreement stipulates that the company pay the market rate for paper which it shreds and then sells for profit.
- Auditors discovered the discrepancy, and the state of Nebraska sent a cancelation notice to the recycling company, whom it has contracted for services since 2003.
From the article:
"Shredding Solutions has to pay a monthly fee based on the per-pound rate set for the Chicago market. Instead, Foley said company officials paid a flat $25 per ton under a "verbal agreement" when market rates ranged from $55 to more than $100 per ton."
"Foley said the state Department of Administrative Services didn't try to collect until his office raised the issue, and then disputed his interpretation of the contract."
"...the new contract will not require company reimbursement to the state. Instead, the contract will go to the lowest responsible bidder that agrees to recycle the paper..."
