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Water treatment works handed over to corporate crooks

In October the government announced that water treatment works would be handed over to a private consortium - Dalriada Water. Despite the local name, this consortium was composed entirely of international utility companies. It included the notorious Tyco International. By coincidence, in the same week of the announcement in the future of water treatment works, the former chief executive and finance director of Tyco were being sentences in a New York after being found guilty of serious fraud charges. During their period with the company they moved the company's registration to Bermuda, then went on to set up 115 subsidiaries in tax haven countries, including eight in the Bahamas, 17 in Barbados, 55 in Bermuda, and five in the Cayman Islands. Most of these companies had nothing to do with real business, but were front companies used in accounting scams to evade taxes and to allow it to issue false accounting reports that hid bad debts and exaggerated assets. Stock prices shot up, investors bought, and Tyco executives made a bundle. In 2002 Tyco chief executive Dennis Kozlowski took home over $71 million, up $34.7 million raise from the previous year when the company laid off 11,300 workers. When the truth came out investors lost their money and Tyco's former top executives were charged with looting the company of $600 million.


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