The Milwaukee Metropolitan Sewerage District’s Commission voted June 8 to approve an independent, third-party audit of its wastewater treatment system.
The move comes weeks after the advocacy group Common Ground and Steve Jacquart, a retired longtime high-ranking MMSD official, accused Veolia North America of mismanagement. Other whistleblowers have come forward since then.
Veolia is the private operator of MMSD’s wastewater treatment system and is one of two firms competing for a 10‑year contract worth up to about $700 million. The company, a subsidiary of the French utility giant Veolia, has run MMSD’s treatment plants under public‑private partnership contracts since 2008.
All commissioners present voted to move forward with an independent audit.
“People have made clear that they believe ensuring MMSD remains a trusted community partner… is critical to our water, to our democracy, to our community’s well-being,” MMSD Commissioner Chair Corey Zetts said at the June 8 meeting held at the sewerage district’s headquarters.
The commission allocated up to $100,000 for the audit, as well as an additional $100,000 for additional professional services that may be necessary given the information the audit provides. The commissioners did not discuss who would perform the audit.
The audit will include an advisory committee with individuals throughout Wisconsin with no ties to the sewerage district or Veolia, Zetts explained. The commission is finalizing the advisory members, who must sign conflict of interest disclosures as well as non-disclosure agreements. The names will be announced publicly.
Commissioner Jeff Stone will serve as the point person between the commission and the audit advisory committee.
While Common Ground acknowledged the step forward, its leaders remain cautious.
“They’re finally doing the right thing,” Bob Connolly, co-chair of Common Ground’s water team, said after the meeting. “But we’re not sure we can support it until we see all of the conditions.”
Connolly said the audit needs to be independent, rigorous, public and protect the 20 whistleblowers who have come forward so far.
The audit advisory committee should also include a member from Common Ground, he said. However, the commission has not responded to Common Ground’s request for a meeting regarding a spot on the committee, Connolly said.
MMSD will hold a public hearing the evening of June 11 to discuss the bid process. A decision is expected in the fall.
Connolly said Common Ground will ask commissioners to wait to choose a bidder until after the audit is complete.
Veolia has accused Common Ground of wanting to “sabotage” the bidding process.
“Operational performance is measured by compliance with rigorous effluent water quality standards that protect public health and the environment,” the company said in a May 18 statement. “Veolia’s documented effluent quality compliance rate of 99.95% supports confidence in current operations, and the company remains focused on returning clean water to Lake Michigan.”
Audit gives community members ‘a seat at the table,’ commissioner says
MMSD is one of the largest publicly-owned wastewater systems in the U.S. that contracts a private company to run its treatment plants. This means MMSD owns the system, but uses a private company that is responsible for day-to-day upkeep.
Veolia covers the operation and maintenance of the Jones Island and South Shore wastewater plants, Deep Tunnel system, Milorganite fertilizer factory and regional sewer infrastructure that serves 1.1 million people.
Veolia’s rival for the deal is Jacobs Solutions, the Dallas‑based engineering giant that, along with Veolia, ranks among the country’s largest private sewerage system operators. The two companies frequently bid head‑to‑head for major municipal contracts.
Jacquart, the whistleblower, alleges Veolia’s decision to switch to a cheaper chemical for its treatment system in 2017 resulted in “reduced wastewater treatment capacity, increasing the risk of sewerage overflows and basement backups during rainstorms.”
Zetts said at the June 8 meeting that the independent audit will make sure communities that have experienced flooding or basement backups “will have a seat at the table and make sure their questions get answered about our very complex operating system.”
In September 2025, MMSD released a draft of the new, ten-year contract that overhauls its maintenance and cost‑sharing agreement and shifts more of the power and chemical costs to the private operator.
Veolia and Jacobs submitted their bids for the contract in January. A committee of five former MMSD commissioners, chosen by the governing body and approved by Shafer, has been guiding the selection process and taking part in interviews and technical reviews.
Caitlin Looby covers the Great Lakes and the environment for the Milwaukee Journal Sentinel. Contact: clooby@gannett.com. Follow her on social media @caitlooby.
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This article originally appeared on Milwaukee Journal Sentinel: Veolia to face audit over allegations of Milwaukee sewer mismanagement
Reporting by Caitlin Looby and Mary Spicuzza, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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By Caitlin Looby and Mary Spicuzza, Milwaukee Journal Sentinel | USA TODAY Network
