Hamilton Mayor Fred Eisenberger applauded the decision by the Hamilton Police Service last week not to take any action against the city’s water and wastewater division.

“For the city and Jim Harnum, senior director of water and wastewater, there was no criminal wrongdoing,” said Eisenberger. “We are very pleased with the outcome.”

A former water and wastewater employee, Abdul Khan, raised concerns in an 18-page email sent to city officials and the media last year. He alleged that there were financial “irregularities” within the department, including possible theft; that city staff had withheld “crucial” information from council, including the “real” financial costs of upgrading the water and wastewater system; that senior management adopted “scaremongering tactics” when appearing before council to discuss capacity issues at the Woodward Avenue facility; and that city officials put some residents’ health at risk in connection with high levels of lead found in Lynden water last year. A drinking water advisory resulting from the lead levels has since been lifted.

Councillors in December referred Khan’s allegations about financial problems to the Hamilton Police Service for review.

Last week, Det. Sgt. Glenn Bullock concluded that “based on the outcome of the investigation, it is the investigator’s opinion that there were no theft or related Criminal Code offences arising from the activities as described by Mr. Khan.”

Councillors also directed city solicitor Peter Barkwell last December to conduct an internal investigation following Khan’s allegations involving policy and procedures within the department.

Eisenberger said he remains “confident” all of Khan’s accusations will be proved “unfounded.”He expects the internal review to be completed “sooner rather than later. I hope it comes to us in a reasonable time frame,” he said.

Barkwell was expected to ask the city’s internal auditing firm, as well as an external auditor, to conduct a review of the city’s practices.

Khan, who worked for the city from 2005 until 2009, indicated in interviews that his email to was an attempt to improve the department and make the Hamilton public aware.

Harnum has retained lawyer Julian Porter to take legal action against Khan, who now works for a municipality in Alberta. Khan was unavailable for comment about the Hamilton Police Service’s decision before press deadline.