The Department for Environment, Food & Rural Affairs (Defra) and the Environment Agency recently announced that two individuals had been arrested in Cornwall as part of an investigation related to alleged fraud within the Packaging Producer Responsibility regime.
The Packaging Producer Responsibility Regulations were introduced to make producers of waste packaging, such as glass and plastic, cover the cost of recycling and disposing their waste.
Legitimate businesses are required to prove they have made a financial contribution by buying credits from firms which dispose of waste properly. However, the credits have a monetary value and, in recent years, have been exploited by criminal gangs looking to infiltrate the sector and line their pockets.
The individuals sold more than £6 million in credits for packaging they claim to have reprocessed. However, it is suspected that a large proportion of this never actually took place and the reprocessing figures have been inflated, with possible money laundering also taking place.
After being interviewed, the suspects were released pending further investigation. Evidence gathered during the arrests will support action going forward.
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