(14th LEGISLATIVE DISTRICT) -Assemblywoman Linda R. Greenstein and Assemblyman Wayne P. DeAngelo on Monday urged Attorney General Paula Dow to launch an investigation into the financial dealings of multi-national food service provider Sodexo.
The company that reportedly earns $4 billion annually recently settled a $20 million lawsuit after an investigation showed they violated state and federal law by hiding vendor rebates in connection with services proved to 21 school districts and the State University of New York.
Sodexo provides food services to 73 school districts in New Jersey.
A recent study released by the Clarion Group found that Sodexo had similarly withheld rebates in the Piscataway and Long Branch school districts. Under state and federal law, companies such as Sodexo can negotiate rebates with food product, supplies and equipment vendors, but savings from the rebates must be returned to the school districts.
“We are asking your office to investigate Sodexo’s business practices in New Jersey to ensure that all rebates provided to the company are being accounted for and appropriate monies are given back to the school districts or public coffers,” wrote Greenstein (D-Middlesex/Mercer) and DeAngelo (D-Mercer/Middlesex) in their letter to Dow. “We cannot, and will not, tolerate a company solely looking to make a profit off of services intended for the public benefit.”
“In a time when New Jersey must be deliberate about spending taxpayer dollars and school districts are faced with tight budgets, we are concerned that Sodexo could be purposefully hiding millions of dollars that should be going into our schools or back to taxpayers,” added Greenstein and DeAngelo.