in Houston, Texas
Houston's sludge processor Synagro Technologies tied to Detroit bribery scandal
Tuesday, Jan 27, 2009, 03:24PM CST
By Jennifer Peebles
A Houston-based company that does contract work for the city of Houston to remove and dispose of its sewage sludge is in the hot seat after an executive of the firm pleaded guilty to bribing Detroit city officials to win a $47-million-per-year contract, Detroit-area media are reporting today.

Synagro Technologies has done business with the city of Houston for some time. The city last February re-inked its contract with the firm, giving city officials a free hand to spend up to $26 million with the firm without needing to return to the City Council for specific approval.

(What other Texas cities have contracts with Synagro? If you know of one, drop us a note in the comments section below or e-mail us at news@texaswatchdog.org.)


The head of Synagro's operation in Michigan pleaded guilty in federal court today in Detroit to guilty to bribery conspiracy, the Associated Press has reported. We saw it on Chron.com. Here's a snippet:

DETROIT — Cash bribes and trips to Las Vegas helped pave the way for a $47-million-a-year contract between the city and a Texas company that recycles sludge, a former executive said Monday as he pleaded guilty in federal court.


Rosendall becomes yet another person headed to prison who had connections to the scandal-plagued administration of former Detroit Mayor Kwame Kilpatrick.

The influence-peddling reached a climax in fall 2007 when a City Council member accepted payments to vote in favor of the deal with Houston-based Synagro Technologies, the government alleges. The contract was approved, 5-4.

"People expected me to give things to get their support," Jim Rosendall told a judge ...

In court documents, he said his courtship of Detroit officials began in 2001 when he introduced himself to "City Official A" by presenting several campaign checks and explaining that Synagro was working to acquire a company, Minergy Detroit, that had a waste contract with the city.

For the next few years, Rosendall said he attended fundraisers for City Official A and donated about $200,000 to nonprofit groups, political action committees and other campaign entities affiliated with the official.

In September 2003, he said he chartered a plane at a cost of $20,000 to fly the official and others to Las Vegas to see a boxing match.

Court documents do not identify City Official A or the City Council member accused of taking cash for voting in favor of the Synagro contract.

But records obtained by The Associated Press in a Freedom of Information Act request show about $3,000 in charges to a city MasterCard account used by then-Mayor Kwame Kilpatrick. The transactions were at the Mandalay Bay Resort in Las Vegas on the same date when the flight returned to Detroit.


Hmmm ... Maybe not everything that happens in Vegas stays in Vegas.

synagro2008contract

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