Questionable Decrease in Scrap Metal Revenues Collected by St. Bernard Parish After Change in Vendor

The St. Bernard Parish Finance Department observed a dramatic drop-off in scrap metal revenues following a change in scrap metal dealers and asked the Louisiana Legislative Auditor’s office to investigate, according to a report released Monday by Legislative Auditor Daryl Purpera.

In October 2012, St. Bernard Parish Government began selling substantially all of its scrap metal to Moley Disposal. In 2013, revenues from scrap metal sales began declining until they dropped off completely in October 2014. According to the report, the parish did not receive any payments for scrap metal from November 2014 through March 2015.

The parish Finance Department made inquiries to the parish Road Department, which handles the hauling and sale of scrap metal, about the lack of revenues. Subsequently, on April 9, 2015, Moley Disposal issued a check for $564.32 to the parish for February, March, and April scrap metal purchases and issued a second check for $285 to the parish on May 12, 2015 for “Scrap.”

Prior to 2012, the parish sold its scrap metal to WB Scrap and Southern Recycling. According to parish workers interviewed during the investigation, WB Scrap and Southern Recycling always weighed the scrap metal and issued receipts to the drivers. The workers stated that Moley Disposal did not follow either of these procedures. State law requires scrap metal operators to keep a register and file reports or electronically maintain data, including the weight of material purchased.

In May 2015, the parish ceased working with Moley Disposal and resumed sales to WB Scrap and Southern Recycling. Revenue collected from the sale of scrap metal has since risen significantly.

St. Bernard Parish Government collected $337,028 in revenue from the sale of scrap metal from 2010 to 2015.