Hamilton taps city auditor to probe Waterdown Garden dumping allegations
Hamilton's city auditor has started investigating claims of an illegal dirt-dumping operation allegedly involving two municipal staffers and a slain mob boss.
Meanwhile, the city says its insurer has tapped Gowling WLG to defend it against a $75-million lawsuit filed in response to the alleged dumping scheme.
Last month, The Spectator reported on the explosive allegations in the lawsuit, launched by the principals of the Waterdown Garden Supplies Ltd. property in rural Flamborough.
It alleges Carlo Ammendolia, manager of construction-development for the city, and bylaw officer Craig Saunders, conspired with mobster Pat Musitano, who was shot dead in July 2020, to dump contaminated material on the Highway 5 land with thousands of loads, some of them emanating from city job sites.
Among the claims, the lawsuit alleges one or both of the employees, who have been placed on paid leave, profited from unloading dirt on the Waterdown Garden property, and that the manager allegedly provided warnings when bylaw enforcement was expected to inspect the Flamborough site.
Musitano was part owner of Havana Group Supplies, a construction and excavation company associated with the property.
None of the allegations have been proven in court.
Despite several specific requests, the claimants have not yet provided any information that would substantiate their claims," states a report by acting city solicitor Michael Kyne before the March 24 general issues committee.
As such, the employees, who are not named in the report, have been placed on administrative leave during the city auditor probe to ascertain if there is any credence to the claims" against them.
At the same time, Gowling is preparing the city's statement of defence, which is expected to be provided to the claimants' lawyer by Friday, the report notes.
The principals filed the lawsuit, in part, to address liability issues related to the soil.
The claim argues the city is responsible for allowing the municipal fill to be dumped on the land and for not enforcing a 2015 court injunction to halt illegal unloading.
Waterdown principal Gary McHale disputes that he, his co-principal - a company associated with shareholder Barry Humphrey - and their consultant hadn't provided the city with evidence.
We thought, OK, they may want to settle this without a lawsuit,' so we met with them and gave the details," McHale said Wednesday. He said three witness statements were provided to the city in October 2020.
But McHale said staff wanted them to file a complaint through the city's fraud and waste hotline.
McHale said with the clock clicking on a two-year statute to file claims, they couldn't submit to a process that we have no control over time. It's just not happening."
The fraud and waste hotline is overseen by the office of city auditor Charles Brown, who's now conducting the investigation into the Waterdown Garden allegations.
Last month, Coun. Sam Merulla told The Spectator the claims should be the subject of a criminal probe led by an outside police agency, such as the OPP or RCMP.
Police spokesperson Jackie Penman said no such investigation was underway, but one would move forward it any evidence of criminality was brought to light."
McHale, however, claims he and his associates provided police with thousands of documents" but were told fraud investigators had become overwhelmed."
In an email Wednesday, city spokesperson Matthew Grant noted the municipality contacted police about the allegations but were told no investigation was being conducted.
If in the course of our investigation we did find something of concern, we would pass that on to the police."
Teviah Moro is a Hamilton-based reporter at The Spectator. Reach him via email: tmoro@thespec.com