ALBANY — There are at least three investigations into a former city water department employee over allegations of financial improprieties related to the city’s lead service replacement program, which helps property owners pay to upgrade water pipes.
Mayor Kathy Sheehan’s Chief of Staff David Galin said the city was made aware of the potential misuse of resources and that the city had ordered an independent review of the situation.
Galin said earlier this week a resident came forward and provided evidence that prompted Sheehan to order the review. When asked who was conducting the independent review, Galin said the city was still finalizing details on it.
The city police department is also investigating the matter, according to a city police spokeswoman. She declined to comment further, citing the open investigation.
Albany County Sheriff Craig Apple said he had also received complaints about possible fraud related to the lead service pipe replacement program and had opened an investigation.
The employee, who has not been criminally charged, resigned abruptly from the Water Department on July 21.
According to two sources familiar with the allegations, part of the investigation is focused on the employee’s work as a dispatcher for the city’s Water Department, where he supervised one other employee.
Through that role, the employee was allegedly able to guide work for the lead service replacement program to a contractor.
When the Times Union previously asked about the allegations in early August, both Mayor Kathy Sheehan and Water Department Commissioner Joseph Coffey said they were not aware of any issues with the program.
In a voicemail on Aug. 3, Sheehan said she had not received a complaint or been made aware of any complaints related to the lead service replacement program.
Sheehan did not return a call Friday.
On Friday, Coffey said the employee’s resignation in July was not connected to the lead service replacement program and declined to comment further.
Water Department employees received a notice Friday from the city Corporation Counsel Marisa Franchini directing them to preserve all records related to the program.
The notice says that the city was notified of potential claims that may exist against the city or the Water Board related to the program.
The city’s lead service replacement program provides a reimbursement of up to $2,000 to replace lead water pipes that run from city water mains to homes. The grant only covers about half of the total cost of replacing the full length of the water line from the water meter to the water main.
The city has also set aside $500,000 in American Rescue Plan funding to expand the program.
Anyone with information regarding potential wrongdoing connected to the lead service replacement program is asked to call police at 518-462-8039.
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Albany investigates former Water Department employee - Times Union
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