Scoop summary: Howard Jonas, CEO of U.S. telecom IDT, in an interview with Lucy Komisar, acknowledges for the first time that then Haiti President Jean-Bertrand Aristide in 2003 met with an IDT official during discussions about a contract to pay Haiti Teleco for calls from U.S. customers. That contract included agreement for IDT to send payments to a shell company in the offshore Turks and Caicos Islands. Jonas said IDT got an ethics letter from a law firm clearing the deal, but the lawyer said in a memo filed with the court, published here for the first time, that he simply told IDT to do due diligence. IDT signed the contract the next day.
A former IDT official, who objected to the deal, was fired and is suing the company; trial is set for Nov 9th. The Justice Department and Securities and Exchange Commission are investigating violation of the Foreign Corrupt Practices Act. Jonas’s revelations are likely to have a major impact in the trial and investigations.
The global food services company Sodexo, which I exposed last year for exacting rebates from suppliers and charging clients full price, has agreed to a $20 million settlement with NY Attorney General for that illicit practice.
How food-service providers like Sodexo bilk millions from taxpayers and customers
In These Times, March 2009 –
The Investigative Fund at the Nation Institute provided generous support for this article.
At the end of the 2006 school year, children‘s nutrition advocate Dorothy Brayley had a disturbing conversation with a local dairy representative. He had come to her office to discuss participation in the summer trade show of food providers she runs as director of Kids First Rhode Island.
At the time, the state‘s schools were buying 100,000 containers of milk each week. The salesman for Garelick Farms, New England‘s largest dairy, told Brayley that Sodexo”a food and facility management corporation that managed most of the state‘s school lunch programs”was paying Garelick more than competitors in order to get a bigger rebate.
That‘s just a taste of the hundreds of millions of dollars of “rebates””or kickbacks from suppliers”that Sodexo, a $20 billion-a-year global leader in the food and facility management industry, has taken while operating cafeterias and other facilities for schools, hospitals, universities, government agencies, the military and private companies across the country, according to evidence provided by whistleblowers and internal company documents.
