New City, NY – The Town of Clarkstown has released a series of internal memoranda and other documents related to its ongoing investigation involving suspended Department of Environmental Facilities and Management (DEFM) Director Michael Gianatasio. According to Town Attorney Kevin Conway, the documents were made public to address allegations made by Gianatasio concerning Town payments to Siemens Industry, Inc. under municipal contracts.
The materials include a report prepared by Siemens Industry, Inc. concerning work it performed under its contract with the Town, as well as an independent review by the Town Comptroller. According to the Town Attorney’s Office, the Comptroller’s review confirmed both the findings of the Siemens report and the accuracy of payments issued by the Town for the contracted work.
The Town also stated that its independent investigation is being conducted by the law firm Hodges, Walsh & Burke.
According to Conway, the Town Attorney’s Office reviewed each document obtained during the investigation and determined that the payments made to Siemens complied with the terms of the contract between the company and the Town of Clarkstown. The statement further says that payments issued under the agreement had also been reviewed during annual independent audits conducted by the Town’s outside auditors and that no issues were identified during those reviews.
A significant portion of the Town’s statement addresses Gianatasio’s allegations regarding the Siemens contracts. Conway rejected those allegations, stating that Gianatasio is “not a whistleblower” and asserting that documents released by the Town contradict his claims.
According to the Town, the records show Gianatasio personally approved 17 payment vouchers issued to Siemens. The statement says the approvals included signed payment authorizations, which Town officials argue demonstrate that Gianatasio authorized the payments he later questioned.
The Town specifically referenced payment voucher number 10, related to a playground project, stating that Gianatasio approved the voucher through a signed authorization. According to the statement, his deputy later confirmed the same payment amount in a follow-up email to the Town Comptroller’s Office.
The Town also addressed Gianatasio’s claims regarding approximately $680,320 in labor costs billed under the Siemens contract.
According to Conway, the amount represented a negotiated flat-fee component of the contract rather than wages alone. The Town said the labor portion of the agreement included a variety of project-related expenses, including procurement, planning, design and project development, construction management, commissioning, safety oversight, subcontractor costs, insurance, bonding, project contingencies and hourly labor expenses.
The statement further asserts that certified payroll records represented only one component of the overall project costs covered under the agreement. Town officials also said emails included among the released documents show that both Gianatasio and his deputy had previously received explanations detailing the various expenses included within the labor billing.
The Town additionally addressed a municipal playground project referenced in the investigation. According to the statement, the project was substantially reduced in scope from its original design and location, resulting in what the Town described as a $1.5 million credit from the original agreement.
Conway characterized the reduction as an example of prudent planning and financial management by Town leadership.
The statement also disputes Gianatasio’s claims concerning a separate boiler project. According to the Town, those allegations fail to account for the terms of the master agreement governing Siemens’ work and the total costs associated with services performed under that contract.
Conway concluded the statement by asserting that the Town’s records refute Gianatasio’s allegations and instead support the legality of the payments made under the Siemens agreements. The statement also alleges that Gianatasio’s claims were intended to divert attention from allegations of his own misconduct and Ethics Code violations.
The investigation remains ongoing. Town officials said they anticipate its completion following the continued review being conducted by Hodges, Walsh & Burke.
As of the release of the Town’s statement, no response from Michael Gianatasio addressing the Town’s latest claims was included in the materials provided. The allegations and conclusions outlined in the Town’s statement reflect the Town’s position as the investigation continues.
