Federal prosecutors have alleged that two contractors working for a company hired by the city of Newark to replace lead pipes did not complete the job and defrauded the city by billing them for work that was not done. Newark Mayor Ras Baraka assured residents that their water is safe, with tests showing no lead present. The company in question, JAS Group Enterprise, was responsible for replacing 1,500 lead service lines out of 23,000. The fraud scheme was uncovered by the Department of Justice, prompting the city to conduct its own investigation with the help of the New Jersey Department of Environmental Protection.
The penalties for the contractors involved in the scheme are yet to be determined by the federal government, but the city expects to be reimbursed for the work that was not completed. Mayor Baraka stated that the city’s water has been in compliance since 2019 due to the implementation of orthophosphate to prevent lead from leaching into the water. Despite the fraud incident, the lead service line replacement program in Newark was considered a success, replacing 23,000 lead service lines in less than three years. Mayor Baraka emphasized that the fraud case does not tarnish the success of the program, as the city was able to rectify the issue quickly and maintain the safety of the water supply for residents.
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