2017-02-08

Contract follow-up reveals misleading data

In autumn, a self-initiated contract audit discovered that Swerec AB in Värnamo had knowingly reported misleading data. This discovery has now been confirmed by an in-depth audit of the company’s operations by Ernst and Young (EY).

 A self-initiated contract audit of the four facilities engaged to process plastic packaging from Sweden gave the three German facilities a seal of approval, but also revealed that Swerec AB in Värnamo had knowingly reported misleading data. On behalf of the business sector, Plastkretsen (PK) AB organizes the recycling of plastic packaging in Sweden by assigning the Packaging and Newspaper Collection Service (FTI) to collect the plastic packaging dropped off by Swedish households at recycling stations and curbside collection points. Following a joint procurement process with Green Dot Norway (the equivalent to FTI in Norway), Plastkretsen also signed contracts with four recycling facilities, three in Germany and one in Sweden – Swerec AB in Värnamo.

Plastkretsen’s contracts with the facilities stipulate a material recovery rate of 80 percent. In 2015, the audit of all facilities, jointly planned and initiated by Plastkretsen and Green Dot Norway, revealed that Swerec had knowingly reported misleading data. All three facilities in Germany, however, were approved. Plastkretsen and Green Dot Norway therefore engaged EY to perform an in-depth audit of Swerec’s business operations. The report has not yet been finalized, but preliminary audit information indicates that Swerec has been knowingly reporting misleading recycling data for some time.

“This is a very serious matter, and we will now be taking legal action against the company. It is still too early to decide whether or not we will report the incident to the police,” says Magnus Huss, member of Plastkretsen’s Board.

BackgroundPDF

Press release May 4 2016PDF