City says investigation found no evidence workers conspired to dump contaminated soil

Hamilton says a third-party investigation turned up no evidence to support allegations that city employees conspired to illegally dump contained dirt at a rural property in Flamborough.

The city said two of its workers who were put on paid leave after a $75-million lawsuit named them and the city, but now they're coming back to work. 

A forensic investigation outfit, Kroll Consulting Canada, carried out a 10-month probe after "very serious allegations" were made in a statement of claim, said city auditor Charles Brown at a Thursday media briefing.

Those allegations claimed contaminated soil from city projects had been illegally diverted to Waterdown Garden Supplies Ltd., and that Hamilton staff were complicit in the arrangement, the auditor said.

Kroll began investigating in February, with as many as six people assigned to the "exhaustive review" at some points, said Brown. The city says the review has cost $292,000 so far.

That work involved combing through city and third-party records, interviewing staff and reviewing independent soil samples.

"They found no evidence to substantiate any of the allegations," said Brown, adding the same was true when it came to the concerns raised about city staff.

"As far as their allegedly conspiring assisting dumping of contaminated materials, by covering it up or having business affiliations or involvement with those participating in such a scheme, no information [was found] indicating such activities."

Brown said two city projects were going on during the timeframe covered by the allegations — work on Governors Road and at the Woodward Avenue Wastewater Treatment Plant.

While some soil was taken from the Governors Road site, it was clean, said the auditor. Investigators found no evidence of soil being hauled from the Woodward site.

"In fact, what they found was to the contrary," said Brown. Dirt from two other sites that was tested at Waterdown Gardens was found to have contaminants, he said, but those locations weren't "even in the city."

The suit, filed by Gary McHale, Waterdown Gardens Supplies and 2593860 Ontario Inc., says the city sent dirt to a Highway 5 property owned by McHale but controlled by Havana Group Supplies, which has links to "Hamilton crime boss" Pat Musitano. 

In 2018, the suit says, Musitano and two others with Havana Group Supplies "conspired with City of Hamilton employees … to illegally dump contaminated soil at Waterdown." 

One employee covered up the dumping, the suit claims, and gave Havana Group Supplies a heads up when bylaw officers would visit the site.