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Misconduct Taints the Water in Some Privatized Systems

Source: By Mike Hudson, Special to The Los Angeles Times, May 29, 2006

INDIANAPOLIS — In recent years, cities across the U.S. have turned over a vital public service — providing safe drinking water — to private enterprise. Driving the trend was the idea that for-profit companies, mainly European conglomerates, could operate water and sewer systems efficiently, keeping water quality high and costs low. In some places, private-sector management helped trim bureaucracies and replace decaying infrastructure, local officials say. But in Indianapolis, New Orleans, Atlanta and other cities, privatization has been accompanied by corruption scandals, environmental violations and a torrent of customer complaints.