Printer Friendly

STATE OF MAINE ORDERS APPEAL HEARING ON CHARGES THAT SNAP-ON TOOLS ILLEGALLY OBTAINED STATE MVEIP CONTRACT

 TUCSON, Ariz., June 3 /PRNewswire/ -- Envirotest Systems Corp. (NASDAQ: ENVI) today announced that the State of Maine's Department of Administration (DOA) has granted Envirotest's request for an appeal hearing on the Department of Environmental Protection's award of the state's Motor Vehicle Emissions Inspection Program ("MVEIP") to Snap-On Tools, Inc.'s (NYSE: SNA) subsidiary Systems Control, Inc. ("SCI"). Envirotest was notified of the decision by James W. Keil, director of the Bureau of General Services, in a letter dated May 27, 1993.
 The state has scheduled a pre-hearing conference for June 7, 1993; Deputy Attorney General Cabanne Howard will preside.
 In its appeal filed on May 12, 1993, Envirotest charged that SCI violated Maine civil and criminal statutes by deliberately making false and misleading statements to win the bidding process for the MVEIP award. Specifically, Envirotest said, SCI fabricated information with respect to its corporate history, experience, operations, capabilities, personnel, property and rights. These materials deceived the MVEIP contract review committee in Maine, the charge claims, and makes invalid the evaluation score upon which the award of the contract was based.
 The filing for and granting of the appeal hearing by the DOA follows a request made by Maine State Senator Mark Lawrence (D-Maine) and Representative Paul Jacques (D-Maine) to the Maine Attorney General to investigate the awarding of the contract to SCI.
 The developments in Maine follow a lawsuit filed in Federal Court in Manhattan on May 4, 1993, by Envirotest and its subsidiary, Envirotest Technologies, Inc. ("ETI"), charging SCI/Snap-On and related parties with an illegal scheme to deceive state authorities across the country. That lawsuit seeks $100 million in damages.
 Envirotest stated, "SCI's bid proposal included statements designed to deceive the Maine DEP into erroneously believing:
 -- that SCI, rather than ETI, was the corporation that obtained, implemented and administered the MVEIPs in Maryland, Florida, Illinois and Minnesota;
 -- that SCI is generally more experienced than its competitors;
 -- that SCI has experience in operating MVEIPs in cold climates similar to that of Maine;
 -- that SCI has learned specific skills in prior operations and that it has sufficient number of experienced personnel to manage the Maine program;
 -- that Envirotest, rather than SCI, is a newcomer to the industry.
 "Furthermore, SCI's business and its parent Snap-On's business present a clear conflict of interest. Snap-On sells its tools to automobile repair facilities located in the seven counties included in Maine's inspection and maintenance program. Many of these tools are financed by Snap-On through a purchase money security agreement which requires the automobile mechanics to make weekly payments for the tools and financing charges. As a holder of these financing instruments, Snap-On Tools has a direct financial interest in automotive repair enterprises.
 "SCI, Snap-On's subsidiary, thus has a financial incentive to fail cars, since failure will require more cars to seek repairs. Some of these repairs would be done by Snap-On customers. SCI would have the additional incentive to refer cars that failed to garages operated by Snap-On customers and to pass cars that were repaired in shops purchasing significant quantities of Snap-On Tools.
 "Not only is this a clear conflict of interest, but SCI failed to disclose the conflict to the Maine authorities. This conflict requires that SCI be completely disqualified under the terms of the RFP (requests for proposals)," Envirotest said.
 Envirotest Systems Corp. is the leading provider of centralized vehicle emissions testing programs for states and municipalities. In addition, Envirotest is the only domestic provider of contractor- operated centralized testing services outside the United States.
 -0- 6/3/93
 /CONTACT: Robert Siegfried or Richard J. Wolff of Kekst and Company, 212-593-2655, for Envirotest/
 (ENVI SNA)


CO: Envirotest Systems Corp.; Snap-On Tools, Inc. ST: Arizona, Maine IN: AUT SU:

GK -- NY098 -- 5147 06/03/93 16:06 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 3, 1993
Words:626
Previous Article:TELEKURS ADDS 17 MORE INTERNATIONAL AND EMERGING MARKETS
Next Article:PILGRIM'S PRIDE SUCCESSFULLY COMPLETES REFINANCING PLAN
Topics:


Related Articles
ENVIROTEST CHARGES SNAP-ON SUBSIDIARY, SCI, WITH FRAUD; ACTION SAYS ILLEGAL SCHEME DECEIVED STATE AUTHORITIES; SUIT SEEKS $100M IN DAMAGES
ENVIROTEST SYSTEMS STATEMENT ON SNAP-ON TOOLS LAWSUIT
ENVIROTEST PETITIONS STATE OF MAINE TO VOID CONTRACT WITH SNAP-ON/SCI; CITES SCI'S FALSIFICATIONS OF BID DOCUMENTS & CONFLICT OF INTEREST
MAINE HALTS AWARD OF STATE MOTOR VEHICLE EMISSIONS INSPECTION PROGRAM (MVEIP) CONTRACT TO SNAP-ON/SCI
ENVIROTEST ANNOUNCES SETTLEMENT OF LITIGATION
Teamsters' Strike at Overnite Transportation Company Now in 27th Month.
Maine wins court case on prescription drug prices. (Update).
NJ Judge Enjoins Snap-On & Arbitrator From Proceeding With Arbitration Against Former Franchisees and Employee.
U.S. Attorney Announces Trio Of Gun Trafficking Cases.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters