CHARLESTON, S.C., June 21, 2006 (PRIMEZONE) -- Wastech, Inc. (Pink Sheets:WTCH) (the "Company") today announced that on June 19, 2006, it filed a Petition For Preliminary and Permanent Injunction against the State of Louisiana, Division Of Administration (hereinafter, the "State") and Disaster Relief Construction, Inc. ("DRC"), in the 19th Judicial Circuit Court for the Parish of East Baton Rouge, State of Louisiana, seeking to enjoin the State and DRC from proceeding with the contract to tow storm damaged vehicles pursuant to Solicitation No. 2207210, a contract for which the Company was the lowest bidder.
The Company was obliged to seek an injunction without first exhausting its administrative remedies. On May 30, 2006, the Company had filed an administrative appeal of the denial of its formal protest. Under Louisiana law, (La. R.S. 39:1683), the Commissioner of Administration was required to render a decision within 14 days, or by June 13, 2006. However, the Commissioner failed to issue a decision within the time required by law and for several days thereafter. Meanwhile, DRC began towing the vehicles which are the object of the disputed bid. Rather than endure further unlawful delay, the Company filed its Petition, identifying the Commissioner's failure to render a decision as a further violation of law by the State. Within minutes of Wastech's filing, the Commissioner finally ruled upon the matter and denied Wastech's appeal. The Company is revising and supplementing its Petition accordingly and will thereafter await a hearing on the matter.
Mr. Richard D. Tuorto, President and Chief Executive Officer of Wastech, has stated: "The Company remains dismayed at the State's arbitrary and capricious conduct in dealing with this bid, which has resulted in an unnecessary expenditure of over $5 million in FEMA funds. The Company will continue to pursue every avenue to protect the rights of its shareholders and the taxpayers at large."
The Times Picayune, a New Orleans newspaper, has recently revealed that DRC is currently being sued by the Justice Department for false claims made relative to work performed in Honduras following Hurricane Mitch. According to the article:
In September 2004, the Justice Department sued DRC in Washington
D.C., in connection with its USAID (U.S. Agency for
International Development) work in Honduras. The lawsuit
alleged that DRC misrepresented its personal and equipment
assets, improperly subcontracted most of the work, and
submitted false invoices totaling more than $12.6 million, of
which DRC pocketed $5.2 million after paying subcontractors.
Federal prosecutors are seeking triple that amount in damages
plus other costs in the lawsuit, which continues to wend its way
through the D.C. federal courts. . . .FEMA officials said they
are reviewing the matter.
See, http://www.nola.com/search/index.ssf?/base/library-105/1150784940311680.xml?nola
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release which are not historical facts may be "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from those currently anticipated. For example, statements that describe Wastech's hopes, plans, objectives, goals, intentions, or expectations are forward-looking statements. The forward-looking statements made herein are only made as of the date of this news release. Numerous factors, many of which are beyond Wastech's control, will affect actual results. Wastech undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. This news release should be read in conjunction with Wastech's annual report on Form 10-KSB for the fiscal years ended December 31, 2002, 2001 and other filings with the U.S. Securities and Exchange Commission.