Essay about Effects of the Boycott
Since the launch of the boycott in 2005, it has been documented that Veolia lost around 18.122 billion Euros. The company loss was due to major contract failures that included: Stockholm subway contract worth 3.5 billion Euros, Yolo County California water contract worth $325 million, and West London boroughs domestic waste contract worth £485 million. (Global Exchange 2013)
Furthermore, in December 2011 Veolia announced a 5 billion Euro divestment program to terminate the transport sector. This ultimately affirms that the boycott of Veolia contributed to the closure of one of the services Veolia was differentiated for. This ultimately led to Veolia’s decline in operations from 77 to 48 countries (Veolia Environnement …show more content…
Due to the aforementioned statistics, Veolia needed to scale reduction on its services. Therefore, Veolia became interested in divesting from its transport sector, Veolia Transdev. The transport branch of Veolia was split equally between Veolia and CDC. It was expected that CDC would raise its stake ownership to 60% in 2013 and Veolia’s share would decline to 20% by 2014. Veolia’s financial director, Pierre-François Riolacci, acknowledged that Veolia’s plan to sell shares was to alleviate its debts. However, ownership documents still indicate that Veolia and CDC have a 50-50 split of Veolia Transdev (AFP Report 2012).
Furthermore, it can be argued that the impact of the boycott contributed to the resignation of Veolia Israel CEO, Arnon Fishbein (Calcalist Israel, 2013). No replacement has been announced yet. This causes speculation in the impact of the boycott in Veolia operations in Israel. Reasons for Fishbein’s resignation and the delay of placing a new CEO cause speculation in Veolia’s operations in Israel and its link to the allegations of complicity to its violations in the occupied Palestinian territories.
Veolia’s response to