International cases resurface as inquiry looms
Veolia, the multinational company operating Wellington’s wastewater plant, has been involved in overseas legal cases alleging maintenance failures that resulted in raw sewage discharges into waterways.
The company operates more than 3,200 wastewater treatment plants and 3,800 drinking water production plants worldwide. It has operated the Moa Point plant on behalf of Wellington Water since 2004.
Wellington Water commissioned a review in 2021 that raised concerns about understaffing, inexperience, and a lack of oversight.
Questions about potential wrongdoing linked to the recent Moa Point plant failure cannot be answered until an independent inquiry, which mayor Andrew Little is expected to announce, is complete. Prime minister Christopher Luxon has backed calls for a government inquiry into the failure, describing the situation as “catastrophic” and highlighting public concern about the condition of Wellington’s water assets, according to RNZ.
Wellington Central MP and former Wellington city councillor Tamatha Paul said serious consequences are needed if Veolia’s actions are found lacking, Stuff reported.
“Veolia isn’t just stuffing up in Wellington. They’re stuffing up in Queenstown…” she said. “At the end of the day, what it comes down to is that private, for profit, multinational companies should not be in charge of New Zealand’s critical public infrastructure.”
Scrutiny over asset management
In Queenstown, Veolia operates the Shotover Wastewater Treatment Plant on behalf of Queenstown Lakes District Council. The plant has received two abatement notices, 10 infringement notices, and an enforcement order from Otago Regional Council after part of its disposal field failed and wastewater began ponding near Queenstown Airport, posing a bird strike risk.
Since May last year, excess treated effluent has been discharged into the Shotover River, drawing criticism from locals and environmental groups.
In California, Veolia is involved in legal proceedings alleging mismanagement of a wastewater treatment plant on the US–Mexico border. A class action group of homeowners, a local school district, and environmental groups have accused the company of allowing repeated discharges of untreated wastewater into the Pacific Ocean and Tijuana River. Veolia has denied responsibility, saying Mexico is the source of pollution.
In 2018, Veolia agreed to pay a $1.6m penalty to the Massachusetts state government after it allegedly failed to properly maintain a wastewater treatment plant in Plymouth. According to the state’s then attorney-general, more than 10 million gallons of untreated sewage contaminated parts of the town, and hundreds of thousands of gallons were discharged into Plymouth Harbour.
Veolia was also involved in lead-contaminated water crises in Flint, Michigan, and Pittsburgh, Pennsylvania.
In Flint, more than 100,000 Americans were exposed to elevated lead levels in 2014 and 2015 after incorrectly treated water leached lead from ageing pipes. Veolia was hired as a consultant in 2015 and later reached a $53m settlement while denying wrongdoing, saying it was tasked with assessing carcinogens, not lead.
In Pittsburgh, Veolia took over water management in 2012. After a corrosion-control chemical was changed, lead levels spiked. The city blamed Veolia, while the company denied responsibility. The dispute was settled in mediation in 2018.
