Citywide sacks senior managers over fraud and misconduct claims A WASTE firm owned by ­Melbourne City Council has sacked several senior staff amid fraud and misconduct claims. It is the latest blow for troubled subsidiary Citywide, which posted a $3 million dip in revenue earlier this year. Last month, the company denied claims aired on TV of a recycling rort involving rubbish not being sorted and then dumped as landfill. Citywide's directors include former Labor premier John Brumby and former state ­Liberal minister Mark Birrell. The Herald Sun can reveal that a number of senior managers were recently sacked for alleged misconduct after Vic­Roads slapped unroadworthy certificates on several trucks. It is believed that the employees allegedly received kickbacks from contractors who were paid hundreds of thousands of dollars to bring the vehicles up to scratch. Citywide managing director Kerry Osborne confirmed that certain individuals had lost their jobs in relation to the ­repair of vehicle defects. "The organisation acted swiftly and decisively in these matters in accordance to our policies and procedures," he said. Mr Osborne said Citywide had worked closely with Vic­Roads to ensure all trucks were safe. "All vehicles deemed unroadworthy were promptly returned to service after undergoing authorised repairs," he said. Mr Osborne also confirmed that three other employees, involved in separate issues, were also sacked for misconduct. "This was in no way related to allegations made on A Current Affair concerning the company's waste management operations, which were proven to be incorrect," he said. None of the misconduct cases at Citywide has been referred to police. Last February, it was revealed that Citywide had suffered a $3 million dip in expected revenue over a three-month period. The company lost a $40 million street sweeping contract to rival Spotless in 2012, while earlier this year it missed out on a $4.3 million tender to provide maintenance in major CBD parks. The council's latest quarterly financial report noted an $857,000 drop in intercompany revenue, mainly due to Citywide. Mr Brumby and Mr Birrell were appointed to the Citywide board after a confidential council meeting in late 2012. Originally published as Citywide managers dumped over "misconduct"