NEW CITY – Clarkstown officials have released documents to USA TODAY Network that they say show a suspended town engineer’s questions about financial improprieties by a town vendor are, in the town attorney’s words, “nonsense.”
An internal audit addressed claims of questionable billing made by Michael Gianatasio, the town’s director of engineering and facilities management who is now on paid leave.
The audit was done by Siemens, the town vendor on an energy efficiency program at the heart of Gianatasio’s accusations, then reviewed by the town’s comptroller and town attorney’s office, town attorney Kevin Conway said. Documents were provided to the USA TODAY Network on July 28.
The attorney for Gianatasio questioned the source.
“Internal audits of (a) company accused of stealing millions from the town and misappropriate funds should be viewed quite skeptically,” said Robert Schechter of Tilem and Associates in White Plains.
Gianatasio has maintained he was a whistleblower, raising concerns about financial discrepancies in Siemens’ billing to the town, and that town officials had retaliated against him.
Gianatasio’s concerns were first reported July 8 in the Rockland County Business Journal.
Within days, Clarkstown Supervisor George Hoehmann and town attorney Conway told USA TODAY Network that Gianatasio had already been under investigation by town officials for about a year, accused of misdeeds. They said that an ethics probe of Gianatasio and termination proceeding against him were going forward.
What the audit documents say
Conway said on July 28 that documents show everything was proper under the contract between Siemens and the town; past years’ documents had also been reviewed by the town’s outside auditors, Conway said, “with no issues found.”
Siemens, in its audit, called the Gianatasio claims “misguided” and “misplaced.”
Conway framed it a different way. “To be clear, Mr. Gianatasio is not a whistleblower,” Conway said. “He is a liar.”Schechter said Gianatasio “reported what he saw because he was concerned.”
Schechter urged the town and Siemens to reveal all information. “We hope this does not get swept under the rug, Schechter said. “It is clear the People of Clarkstown are also concerned as they rightfully should be, it is their money.”
Eugene Bondar, a Democrat who is running for supervisor against Republican Hoehmann, said the New York State Comptroller’s Office should audit the contract, “not the vendor, not the town attorney.”
“If there’s nothing to hide, that costs this town nothing,” Bondar said.
What each side said happened
Siemens is a multinational corporation that is contracted with the town to perform an Energy Performance Contract under a state program, called an Article 9.
This program is used by public agencies, local governments, and school districts to implement energy efficiency upgrades with private-sector partners in a way that requires no upfront capital. The private partner finances the project, and the costs are paid back over time using the guaranteed financial savings on utility bills.
Gianatasio said he was concerned about “unsupported labor billing” by Siemens International Industry, Inc., and reported these and other concerns to town officials.
Specifically, Gianatasio questioned more than $600,000 in “labor” for work at Zukor Park’s playground and $180,000 for two boilers, a price that Gianatasio said was more than double the cost that would usually be charged for two boilers.
According to the Siemens internal audit, the project was done at a set price, and Gianatasio’s claims left out several items. For example, Siemens said the price for the boilers wasn’t just for the equipment, but included scoping, procuring, preparing, and installing the boilers properly for Clarkstown’s needs.
“The two items that he was trying to make note of were entirely proper,” Conway said. “It’s just nonsense.”
Conway had also noted that many Siemens payment vouchers were signed by Gianatasio. “I don’t know how you can be a whistleblower on yourself.”
Schechter, Gianatasio’s lawyer, said, “We are hopeful that the People of Clarkstown will have all the information before them soon enough.”
A series of charges and countercharges
As the public reacted to reports of Gianatasio’s questions about town spending at a July 14 town board meeting, Hoehmann and Conway laid out their accusations against Gianatasio.
Conway said the town launched its probe into Gianatasio after he failed to provide information about at least 17 business interests on financial disclosures.
Conway said the town had sent the new findings to the Rockland County District Attorney’s Office. Conway on July 28 said the new audits were also being provided to the DA.
Clarkstown Highway Superintendent Bob Milone, a rare Democrat in the sea of GOP town leadership, had also reportedly reached out to the Rockland District Attorney’s Office, questioning oversight between Clarkstown and Siemens.
Rockland DA Thomas Walsh’s office has declined to comment, citing policy against confirming or denying investigation.
Hoehmann, a Republican, and Conway then countered that Milone was mixed up in Gianatasio’s problems, saying the highway super had used C.A.C. Industries, one of the companies Gianatasio was linked to but hadn’t listed on town disclosures.
Milone’s attorney, John McGowan, noted that the July 28 report does not directly reference the highway superintendent.
“Although his name has often been drawn into the broader discussion surrounding Mr. Gianatasio, he will not prejudge the matter and believes the appropriate process should be allowed to run its course, free from political spin and theater.” McGowan said.
Hoehmann and Conway have also raised accusations that Gianatasio was trying to get Siemens to hire his wife’s company.
The Siemens eight-page internal audit released to USA TODAY Network made no mention of any effort by Gianatasio on behalf of his spouse nor did the audit directly mention C.A.C.
Schechter, Gianatasio’s attorney, said his client “absolutely denies that he ever improperly solicited business from the town on his or anyone else’s behalf and denies any allegations of unethical behavior or self-dealing.”
This article originally appeared on Rockland/Westchester Journal News: What vendor’s audit claims about Clarkstown whistleblower | Exclusive
Reporting by Nancy Cutler, Rockland/Westchester Journal News / Rockland/Westchester Journal News
USA TODAY Network via Reuters Connect
By Nancy Cutler, Rockland/Westchester Journal News | USA TODAY Network
