Rhode Island Wins $5M Settlement over Landfill Mismanagement

June 17, 2010

The State of Rhode Island has won a $5 million insurance settlement to help resolve claims of waste and wrongdoing at the state landfill that auditors say cost taxpayers $75 million.

RSUI Indemnity Co. has agreed to pay $5 million under a directors and officers liability policy the company had issued to the Rhode Island Resource Recovery Corp.

The Providence Journal reports that the state is pursuing an additional $10 million in claims under two other insurance policies.

The audit concluded that Rhode Island’s trash agency was plagued for years by waste and mismanagement, flawed multimillion dollar construction projects, questionable land deals, cronyism, bogus workers’ compensation claims and phony overtime scams.

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