Purcell Tire Co. has reached an agreement to give the city of Tucson a $37,000 credit after overcharging for tires, according to a report in the Arizona Daily Star.
The agreement came after a two-month investigation into allegations of kickbacks to city employees – which were ruled out by the city’s purchasing director, the paper reported.
Questions arose when an anonymous letter was sent that contained several invoices showing the city paid more than the government rate for Hankook-branded tires, according to the Daily Star report, which also stated the city contract with Purcell Tire called for Goodyear-branded tires, to be sold at the government rate, to be put on city vehicles.
Tucson’s purchasing director explained that the city may have stated a preference for Goodyear tires in its contract, but “substitutions are not uncommon because the city can’t always afford to wait for the preferred tires to be in stock,” the report stated.
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