Sewerage Commission Considering Audit of Veolia

Jones Island Reclamation Facility. Photo by Urban Milwaukee staff.

The Milwaukee Metropolitan Sewerage District (MMSD) is moving toward an audit of the private operator of its wastewater plants after allegations of systemic mismanagement were brought to light by the community organization Common Ground.

Common Ground has repeatedly called for an independent audit since launching a campaign calling for transparency into the operations and oversight of the Jones Island and South Shore facilities. The group is working with more than two dozen whistleblowers.

MMSD and its executive director Kevin Shafer initially responded by hiring Lake Effect HR & Law in early May to investigate the claims from Common Ground and the whistleblowers who have provided information. Common Ground publicly rebuffed the investigation, claiming the group had no expertise in wastewater management and was seeking to ascertain the identities of anonymous whistleblowers.

Now the MMSD Commission, an oversight body largely appointed by the mayor, will vote Monday, June 8, on a proposed audit. Common Ground announced Thursday it is prepared to support the audit, provided it is a good-faith effort and not a political ploy.

MMSD commission chair Corey Zetts, who initially released a statement in late April attacking the Common Ground effort, has since embraced the idea of doing an audit. Now, the commission will consider a resolution by Zetts to initiate an “independent third-party audit of the concerns that have been raised about wastewater operations and maintenance.”

A majority of the MMSD commissioners are appointed by the mayor and confirmed by the council. All are paid a $10,000 annual stipend.

The audit is responding to Common Ground’s claims, based on information from whistleblowers, that Veolia Water Milwaukee, the French corporation operating the wastewater treatment plants, is intentionally mismanaging the system to save money, failing to maintain machinery and causing plants to run below capacity during heavy rainfall, thereby increasing the risk of sewer overflows and basement backups.

Veolia has operated the plants since 2008. The company is currently bidding on what would be its third 10-year contract, which would begin in 2028 and is valued at about $700 million. The contract is scheduled to be awarded in September. Veolia is up against Jacobs Solutions, a Dallas-based engineering services company.

Common Ground has now released five conditions the organization believes need to be satisfied for an audit to be viewed as truly independent. If they are met, the organization is prepared to support the audit. In the meantime, it said it will continue to explore an independent audit overseen by the state.

“These conditions will prove whether the MMSD Commission is acting in good faith, or just checking a box politically,” said Bob Connolly, founder of Common Ground. “This audit must not be rushed. We need an independent, comprehensive audit of how Veolia has been managing our tax dollars and treatment plants—or we will not support it.”

The organization is saying the audit must be 1) independent of MMSD management and the executive director’s influence; 2) the findings must be released publicly before a new contract is signed; 3) workers must be able to confidentially and anonymously share information with auditors; 4) the audit must cover all aspects of the operation and maintenance of the wastewater treatment system and MMSD’s oversight of Veolia; and 5) the auditor must have the technical expertise to reliably conduct the review.

Asked whether she thought the commission could ensure independence and a public report before a new contract is awarded, Zetts told Urban Milwaukee, “The commission is committed to ensuring an independent third-party audit is conducted, independent from MMSD staff, and publicly sharing the audit’s results with the community.”

Zetts agreed last month to the idea of an audit after a majority of the Milwaukee County Board of Supervisors announced their support for this, suggesting the state’s Legislative Audit Bureau could conduct the audit.

Zetts and Shafer had both initially resisted Common Ground’s call for an audit, questioning the reliability of the first whistleblower to step forward, Steve Jacquart. Since then, another whistleblower, Greg Gryskiewicz, has come forward with a detailed report on alleged mismanagement at the facilities.

Reached for comment Thursday, Veolia Senior Vice President of External Communications Adam Lisberg offered this statement to Urban Milwaukee: “As the operator of one of the nation’s largest and most complex wastewater systems, Veolia is subject to continuous, rigorous oversight—from state regulators and federal authorities to ongoing reporting and engagement with Milwaukee Metropolitan Sewerage District (MMSD) staff and its governing Commission. If MMSD wishes to pursue an audit with clear parameters and objectives, we will cooperate as a good partner and professional operator.”