Houston City Controller Annise Parker has announced the start of in-depth audit of alleged criminal activity regarding Republic Waste Services and city garbage collection and disposal.

Republic is accused of billing the city for collection and disposal of tons of garbage collected in other cities. The company is also accused of hiring workers with phony social security numbers. The alleged criminal activity was revealed in a series of investigative reports aired by Channel 13.

"It is obvious from information shared with my office by 13 Undercover reporter Wayne Dolcefino that the city has been ripped off," said Parker. "I am determined to recover the money that is rightfully owed the taxpayers."

The controller's audit will be conducted on two phases. Phase one, to be completed as rapidly as possible, will determine the extent of the alleged fraudulent activity, as well as identify the amount of financial restitution to which the city is entitled. Phase two will begin after completion of phase one and will entail a performance audit of the city's Solid Waste Management Department and its organizational structure, internal controls, policies and procedures. The goal is to not only develop recommendations for preventing fraud, but also identify ways to make the department more effective and efficient.

The controller's office audit is part of a multi-agency investigation that includes the Houston Police Department, the Harris County District Attorney and several federal agencies.

Mayor White has engaged attorney Jim Moriarty, of Moriarty Leyendecker to negotiate a settlement with Republic. The controller's office has engaged Jefferson Wells International Incorporated to perform both phases of the audit. Republic has agreed to reimburse the controller's office up to $150,000 for the first phase of the audit.

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