GreenPak alerts waste collectors about cash flow issues due to alleged non-payment by WasteServ

GreenPak Coop, the nationwide collection service for separated waste, has warned that following alleged non-payment for its services by WasteServ, the state agency that treats and exports material to overseas recyclers, it may have to delay payment to its own waste collectors.

“Following a unilateral decision by WasteServ to withhold payments due to GreenPak Coop for delivery of separated waste to its recycling facilities, GreenPak has been left with no option but to inform waste collectors that payments due to them may now also be delayed”, the Coop said in a statement.  

GreenPak provides the nationwide service on the basis of a contract which has been in place since 2012.

This contract sets the rates which Wasteserv pays GreenPak Coop for waste delivered to Wasteserv, GreenpPak explained.

In turn, Wasteserv treats and exports this material to overseas recyclers. WasteServ’s decision to unilaterally stop honouring this contract, the Coop added, has led to many months of discussions with the Government.

“These discussions have so far not produced any progress. As a result, GreenPak, which relies on these fees, as well as contributions from businesses in-line with their producer responsibility requirements, to cover the significant costs of waste collection, is now facing disruption to its cash flow.”

No details were forthcoming about why WasteServ has halted payments to GreenPak, with the information coming to late via a statement by the Coop on Friday.