Philly Settles With Aramark Over Contracting Violations

Law360, Philadelphia (December 14, 2012, 7:58 PM EST) -- The city of Philadelphia on Thursday reached a $400,000 settlement agreement with Aramark Correctional Services and Strother Enterprises Inc., ending a dispute in which the city claimed the companies submitted inaccurate invoices to circumvent the city's minority-contracting requirements.

The city’s Office of the Inspector General alleged that Aramark had inaccurately reported payments made to Strother when submitting invoices made for food-services contracts with the Philadelphia Prison System.

The OIG contended that while Strother, a city-certified minority business entity, did actual work under the contracts, it took...
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