Montreal blocks recycling giant Ricova from bidding on new contracts
The Metropolis of Montreal is barring Ricova, which has a strong maintain on the business and operates each town’s recycling sorting centres, from bidding on new contracts for the subsequent 5 years.
The choice, confirmed this morning by the workplace of Mayor Valérie Plante, doesn’t have an effect on current contracts with town.
Ricova Companies Inc., primarily based in Brossard, Que., has been working Montreal’s two recycling sorting centres, in Lachine and Saint-Michel, since 2020 and collects curbside recycling from two of town’s boroughs.
It additionally has assortment contracts with a number of municipalities within the Montreal space.
In a report earlier this yr, town’s inspector basic, Brigitte Bishop, alleged the corporate didn’t pay Montreal its fair proportion of recycling earnings.
She stated Ricova Companies Inc. had bought recyclable supplies to one in every of its sister firms, Ricova Worldwide Inc., which then bought them to outdoors patrons at a better worth.
In all, the report alleges Ricova withheld greater than $1 million it owed town for recycled supplies it bought over a 12-month interval.
She advisable town block the corporate from bidding on contracts for 5 years and minimize ties with the corporate “as quickly as potential.”
Excessive contamination ranges at sorting centres
A spokesperson for the mayor’s workplace stated as we speak’s announcement fulfils the primary suggestion however that extra stays to be performed.
“The investigation launched by the BIG was extraordinarily conclusive and upon receipt of the report, the method was launched to implement the suggestions of the inspector basic as quickly as potential,” stated Marikym Gaudreault.
Town has been important of Ricova for its work on the two sorting centres, the place sorted supplies have been discovered to have excessive contamination ranges, which makes it troublesome to promote and in the end, recycle.
Ricova has denied any fraudulent exercise and it seems the corporate won’t relinquish its Montreal contracts and not using a struggle.
The corporate despatched a authorized letter to town final month, threatening to sue if town follows via on Bishop’s suggestion to chop them off.
In a press release Wednesday, spokesperson Stephanie Dunglas stated “we be aware of town’s resolution and can take the suitable treatments within the circumstances.”
“We’ll proceed to offer the identical degree of service below the assorted contracts we’ve got with the Metropolis of Montreal till this example is resolved,” Dunglas stated.
