Tuesday, February 21, 2017

Republic's Expert Forensic Accountant Is Decade Off

The Standard Times Mike Kelly defended Republic Services audit of unauthorized billing of commercial customers over a decade's time.  Mr. Kelly posted Republic's audit on his personal Scribd account, which has a total of 7 documents listed. 

Republic Waste Services
Expert Report of Gregory A Shanabrook
1. I have been retained by Republic Waste Services of Texas, Ltd. (“Republic”, “Defendants”) inconnection with the case between Acme Iron & Metal Company, Mayfield Paper Company, Inc., and those similarly situated (collectively the “Plaintiffs”) and Defendants.

2. In 2004, the City of San Angelo (the “City”) solicited proposals to provide solid waste management services for a future term. During that process, questions arose regarding Republic’s past charges to commercial and industrial customers. Republic determined to make a refund of the fuel recovery fees and environmental recovery fees charged in excess of the fuel fees expressly stated in City ordinances (referred to herein as “refundable fees”).
Expert forensic accountant Shanabrook needs to correct his report to 2014, not 2004, and resubmit it to the court.

The city did not conduct an internal investigation as to how this unauthorized billing occurred over the terms of Will Wilde, Ricky Dickson and Shane Kelton. These three gentlemen had operational responsibility for monitoring Republic's performance and compliance with contract provisions. The city did produce a one page investigation which concluded Republic billed and collected unauthorized fees on a long term basis.

Republic Services had two different accounting systems during their decade of unauthorized fee billing.

The city never caught this and once informed let Republic clean up its fraudulent mess. It has run away from internal review and management scrutiny at every turn.

I trust Mr. Shanabrook to correct his honest mistake. His was in one line of a report not over 5,900 customer accounts, ten years, three city leaders and two accounting systems.

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