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An investigation commissioned by City Controller Ray Malinchak has uncovered what he called "systematic" overcharging by McKeesport's trash hauling company.

According to Malinchak, a report by Corporate Security and Investigations of Monaca, Beaver County, suggests that McKeesport is being billed for trash that was picked up in neighboring municipalities by Nickolich Sanitation of Clairton.

Malinchak made his announcement during a public comment period at Wednesday night's city council meeting.

Witnesses interviewed by investigators also alleged that city employees have purchased tires for "certain persons affiliated with the city" and engaged in what Malinchak called "incomplete financial transactions" totaling $7,500.

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But Malinchak, who has promised to turn the report over to county and state law-enforcement agencies, said he will not share the report with city council --- though he intends to ask for reimbursement from the city.

Neither Nickolich nor the company's attorney were questioned, Malinchak said, and investigators did not do a first-hand inspection of Nickolich's trash-hauling practices. And the controller will not identify the 12 witnesses that investigators questioned.

That led Council President Mike Cherepko to accuse Malinchak of being on a politically motivated "witch hunt."

Malinchak is running as an independent candidate for mayor against Cherepko, the Democratic nominee.

"This was a limited investigation," Malinchak said. "If we would have had more money and more time, we definitely would have talked to more people."

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Cherepko said Malinchak is exposing the city to a lawsuit by making public accusations without performing what Cherepko called a "thorough investigation."

Furthermore, Cherepko said Wednesday, since council never authorized Malinchak to conduct an investigation, Malinchak wasn't doing the investigation in his official capacity, and could be guilty of using city resources to campaign.

"If you were doing it as a mayoral candidate, then let's be very clear," Cherepko told Malinchak. "We have people all across the state of Pennsylvania being indicted for things like that."

Malinchak fired back that Cherepko has a conflict of interest because he accepted a campaign contribution from Nick Nickolich, the president of Nickolich Sanitation.

Nickolich "came to a golf outing," Cherepko acknowledged. "How did (Malinchak) know about it? Because it was on my campaign finance report, as it was supposed to be. Everything was as legal as can be."

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The city's trash collection bills have been the subject of a battle since March, when officials reported that the amount of tonnage being collected has gone up 20 percent since the contract was switched to Nickolich from Allied Waste Services.

The examination of the bills was triggered in part by a series of anonymous letters sent to city council. The author or authors of those letters has never been identified, but at least one person who came to city council to complain about Nickolich signed in using a fictitious name.

Though Nickolich charges $16 less per ton than Allied, the increase --- from 10,000 tons per year to 12,000 --- has virtually wiped out a projected $800,000 savings.

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During the public comment portion of Wednesday's council meeting, Malinchak read a prepared statement that said CSI interviewed "12 persons who were believed familiar with the matter."

These interviewees "alleged that trash not originated in our city was improperly charged" to McKeesport's account, Malinchak said.

Speaking to reporters following the council meeting, Malinchak would not identify the witnesses, saying he feared retribution against them.

But the controller acknowledged that no managers from Nickolich Sanitation were questioned, and investigators did not follow trash trucks or inspect them to see if Nickolich was co-mingling trash.

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At May's city council meeting, Nickolich and his attorney, John Linkosky of Carnegie, said the amount of trash being picked up in McKeesport has increased because Nickolich trucks are picking up construction debris, vegetation, furniture and other items that Allied didn't collect.

McKeesport's high transient population is another factor, because rental properties frequently change hands and tenants leave furniture and clothing out on the street, Linkosky and Nickolich said.

On Thursday morning, in an email sent to The Almanac and to Post-Gazette correspondent Jonathan Barnes, Malinchak said "an interview with Nickolich would most likely not reveal anything that was not already discussed by his attorney, (city public works director Nick) Shermenti, and some council members."

Malinchak called their explanations "lame." Linkosky could not be reached for comment on Thursday.

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The investigation cost approximately $6,000, said Malinchak, who added that he would be sending a bill to the city for reimbursement.

But instead of the city reimbursing Malinchak, Cherepko said, the controller ought to be reimbursing McKeesport for "tying up our employees" with an "unauthorized investigation."

If the city won't pay the bill, Malinchak last night threatened to file a civil complaint in magisterial district court to recover the money.

• Listen to a portion of Wednesday's city council meeting. MP3 file, 11 MB.

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