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In California’s recycling program, nickel and dime deposits come to about $1.5 billion a year. But at least $200 million of that goes to criminals, according to a new report from the usually reliable Consumer Watchdog advocacy group.
The money piles high because more than 18 billion drink containers with California recycling value and are sold across the state each year. Buyers deposit five cents for each glass, plastic, or aluminum container holding less than 24 ounces and 10 cents for each one with 24 or more ounces of water, soda, beer, and other drinks (wine and hard liquor bottles are not included).
Roughly 30% of the cash raised every year stays in a special fund earmarked for future refunds because only about 68% of eligible bottles and cans get recycled.
Another 12% or more of the take — almost as much as last summer’s recall election cost — likely goes to crooks, despite the state Department of Resources Recycling and Recovery (CalRecycle) insisting that figure is high and “inaccurate.” The new Consumer Watchdog report titled “Cash for Trash” indicates the figure may be low. Its estimate of at least $200 million in yearly fraud stems largely from CalRecycle’s own investigations.
The state agency boasts of tough enforcement, citing 62,259 audits, investigations, and inspections over the past 10 years, recovering about $10.3 million a year, or a total of $103 million. That works out to $1,611 recovered per CalRecycle action — quite possibly much less than what the actions cost.
But recycling larceny is far more extensive than that, says Consumer Watchdog, whose prior reports on the gasoline, insurance, and utility industries have substantially proven out.
Recycling crimes appear easier to pull off than schemes that have defrauded the state Employment Development Department (EDD) of an admitted $20 billion-plus over the pandemic period….
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Source : yahoo
