Natural Resources and Environment:
Background and Business Relationships of Envirosure Management Corporation
T-OSI-88-6: Published: Aug 10, 1988. Publicly Released: Aug 10, 1988.
- Full Report:
GAO discussed its investigation of a waste management firm's background and business relationships. GAO noted that the Buffalo, New York-based firm, incorporated in July 1984: (1) specialized in the disposal of polychlorinated biphenyls (PCB); and (2) had commercial, industrial, and government customers, at one time deriving 60 percent of its business from the Defense Logistics Agency. GAO also noted that the: (1) former owner of another waste management firm allegedly broke his noncompetition agreement with its acquirers by lending $1 million to finance the establishment of the firm under investigation; (2) firm allegedly repaid the loan by selling stock into a trust fund for the lender's daughter; (3) lender became a consultant with the firm shortly after the noncompetition agreement expired; (4) lender owned the property the firm leased for its headquarters and waived the firm's lease payments when it experienced financial difficulties; (5) firm frequently conducted business with other companies the lender owned; (6) firm's owners, stockholders, and executives were jointly involved in numerous business enterprises; (7) firm had an exclusive marketing agreement with two Kansas City waste disposal firms; and (8) Environmental Protection Agency repeatedly cited those two firms and some of their affiliates for noncompliance with PCB regulations. In addition, GAO noted that many of the individuals involved with the firm declined to talk with GAO but denied allegations regarding their financial backing of and involvement with the firm.