Detroit, Synagro cancel $1.2B contract By Zachary Gorchow Free Press Staff Writer
The City of Detroit and Synagro Technologies have agreed to cancel a $1.2-billion contract the city awarded to the company to recycle sewage sludge in the wake of a former Synagro vice president’s guilty plea to bribing city officials to win approval of the deal, a city spokesman told the Free Press.
Mayoral press secretary Daniel Cherrin said the contract is terminated effective immediately and the city has arranged with another company already under contract with the city to begin handling disposal of the sewage sludge beginning as soon as Tuesday.
Former Synagro vice president James Rosendall pleaded guilty Monday to bribing city officials to secure their approval of the contract.
“Based on the guilty plea of Rosendall, they, like us, think it’s in their best interest to terminate the project and move forward,” Cherrin said. “Under the current circumstances, it’s something that had to be done.”
Cockrel is scheduled to hold a 3:30 p.m. news conference to discuss the situation.A message was left with a Synagro spokeswoman.