Congresswoman requests investigation into contracted-out food services after Sodexho settles with New York state
Sodexho reached a $20 million settlement with the Attorney General of the state of New York in July for overcharging 21 school districts and the state university for food services. "This company cut sweetheart deals with suppliers and then denied taxpayer-supported schools the benefits," Attorney General Cuomo said in a statement . Now, Congresswoman Rosa DeLaura has asked the United States Department of Agriculture (USDA) to begin an investigation by the Officer of the Inspector General and to alert state education and agriculture agencies to the $20 million settlement. Congresswoman DeLaura states: Attorney General Cuomo's investigation revealed that it is common practice within the food service industry for providers like Sodexo to leverage their size and market dominance to obtain rebates from vendors that supply food products, equipment and supplies without passing those savings onto local school districts - despite federal and state laws and lo...