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Public Citizen joins Indianapolis coalition’s demand for scrutiny of Veolia

Statement of Wenonah Hauter
Director, Public Citizen’s Water for All Campaign

Public Citizen strongly urges Indianapolis City officials as well as the Indiana Utility Regulatory Commission to heed the call from the Citizens Water Coalition and conduct a thorough review of Veolia’s compliance with both its Indianapolis contract and applicable federal, state and local regulations.

In its promotional literature, shareholder reports and other venues, Veolia Water North America invariably touts Indianapolis as a smashing success, the proof that privatization—or “public-private partnerships,” in Veolian parlance—can improve service and save money.

Veolia has very little choice but to present Indianapolis as a case study in success. For one thing, Veolia is the largest water company in the U.S., in terms of revenue and water and wastewater flow. Indianapolis accounts for nearly one-third of all the drinking water flowing through Veolia-operated treatment facilities nationwide.

Moreover, Veolia must claim success in Indianapolis, because the company’s record in other cities screams failure. Run out of the largest operations contract in the world in Puerto Rico, Veolia followed up by miserably botching bids to win what would have been the largest U.S. contract in New Orleans. With no other metropolitan areas willing to consider privatization, Veolia turned to small towns such as Hempstead, N.Y. or Lee, Mass. Yet those communities rebuffed the company’s advances as well. (Public Citizen’s corporate profile of Veolia can be viewed at www.citizen.org/cmep/veolia).  Now Veolia and its cohorts in the water privatization industry have turned to Congress, hoping to convince Washington to cut off federal funding for public water and wastewater systems and grant private operators tax breaks and regulatory relief—a congressional cocktail that companies hope will disorient communities and force them to consider privatization.

Presenting Indianapolis as a success story, and squelching any signs of public dissatisfaction or complaint, will not only allow the company to continue its pattern of shoddy service in Indianapolis. Portraying Indianapolis as a model of successful privatization is crucial to Veolia and the entire water industry as they attempt to win congressional assistance and ultimately rekindle the effort to privatize water systems across the nation.

Thanks to media reports, company whistleblowers and citizen watchdogs, more and more information is coming to light about Veolia’s inadequate performance, cozy business dealings and hardball tactics in Indianapolis. It is now time for state and local officials to step up to the plate and vigorously review the company’s actions and performance. To be sure, economic fairness as well as public health and safety of the people of Indianapolis are at stake. But unearthing the truth about Veolia’s conduct in Indianapolis could also have far-reaching influence on federal policies that in turn will affect municipal finances and public health in communities from coast to coast.



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