The following is being distributed at the request of the Multi-Materials Stewardship Board(MMSB):

MMSB awards recycling contract; announces investigation of inventory discrepancy

MMSB chair Gordon Seabright today announced that the processing contract for beverage container recycling for the island of Newfoundland has been awarded to Nova Recycling 1990 Limited, the lowest bidder in an open tendering process.

"We are formally awarding the contract to ensure the uninterrupted continuation of the Beverage Container Recycling Program, which is an important environmental initiative in the province," said Mr. Seabright.

Mr. Seabright also announced that MMSB has asked the Royal Canadian Mounted Police (RCMP) to investigate an alleged past inventory discrepancy for beverage containers at one of Nova Recycling�s processing centres. MMSB and Nova Recycling attempted to resolve this issue through the High Sheriff of Newfoundland and Labrador, but could not agree on terms of reference for a review. MMSB identified the discrepancy in April of this year when the company was under previous ownership, and since that time has been working with the new owner of Nova Recycling to attempt to come to a resolution on this issue.

"MMSB takes its responsibility to administer public funds very seriously. To fulfill this duty, we are asking the RCMP to investigate a past discrepancy in the recycling program for beverage containers," said Mr. Seabright.

This contract was awarded based on prescribed criteria set for all bidders. Nova Recycling was the lowest bidder for the two processing centres on the island and met all post tender requirements.

Mr. Seabright said that MMSB is required to award contracts to the lowest bidder in an open tender process. He also said that, beyond the awarding of the contract, MMSB is responsible for monitoring its contractors. In this case, MMSB is ensuring that an independent body, the RCMP, with expertise in investigations will work to determine the cause of any past operational discrepancy at Nova Recycling.

"Our responsibility extends far beyond the awarding of contracts," said Mr. Seabright. "We will continue to monitor the operations of our contractors and take any and all precautions necessary to ensure that work is being carried out as set out in our contracts. Our programs, such as the Beverage Container Recycling Program, are very important to the environment of Newfoundland and Labrador, and MMSB is very diligent in administering these programs."

The contracts for processing used beverage containers are effective from January 15, 2004 to March 31, 2009. The contractor for processing this material in Labrador is B&D Enterprises in Wabush.

Media contact: Karen O�Neill, MMSB, Communications, (709) 753-0949.

2003 11 21                                          4:20 p.m.