Embattled private trash hauler Flag Container Services will face the music this week over its lucrative contract to provide Sanitation Department with waste carting services that’s potentially worth $37 million, The Post has learned.
The company is owned by Staten Island trash kingpin William Formica, who was indicted in January on felony charges of allegedly assisting in the cover up a recent murder — using dumpster trucks and a waste transfer station.
Flag Container has held the competitively bid contract, which is potentially worth as much as $32.7 million, since November 2015. It expires at the end of October.
“On June 12, the Commission will meet to consider the staff’s recommendation to deny Flag’s license renewal application,” said City Hall spokeswoman Laura Feyer. “If the application is denied, DSNY will take appropriate action regarding Flag Container’s contract with the City for transfer station services.”
So far, the Sanitation Department has spent only $270,000 on the deal, which requires Flag Container to be able to take up to 100,000 tons of solid waste a year — on a per-ton basis. The company bid $100 per ton.
City Hall has come under fire for allowing Formica’s company to continue operating for more than four months after Formica’s indictment, pointing to city rules that require top officials in the once-notoriously corrupt private carting business be of good character.
The hauler — reportedly the largest on Staten Island — has been temporarily permitted to operate since it filed the paperwork to permanently renew its license with the Business Integrity Commission back in 2017.
That renewal is finally scheduled to be heard by the BIC board this week, following a string of stories in The Post that exposed how the regulator allowed the company to continue operating despite the case.
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