A state investigation into alleged improper spending on a state Health Department official by an unnamed former employee of O'ahu's main dump is focused on a golf outing and an inexpensive restaurant dinner, according an attorney.

The two have done nothing wrong and are being scapegoated to help settle a $2.8 million state fine against the Waimanalo Gulch landfill over environmental violations, charged attorney Michael Ostendorp.

The company said it was cooperating with investigators but does not comment on personnel issues or ongoing investigations. The Health Department had no comment, and officials at the attorney general's office were not available. The city's attorney was unavailable.

The landfill is run by Waste Management of Hawai'i, a branch of the nation's largest refuse handler, Texas-based Waste Management Inc.

"This is just a smokescreen for them to negotiate the fine and the noncompliance," Ostendorp said. "It's so they can blame the former employee, claim innocence, and say, 'We just didn't know.' "

No criminal charges have been filed in the spending probe. The Health Department fined the landfill nearly one year ago after determining that 18 types of violations had occurred there over two years.

Waste Management runs the landfill under contract with the city, which owns the site. Both are contesting the fine, and settlement negotiations with the state are ongoing.

The Attorney General's Office launched the spending probe after Waste Management made allegations about a then-employee during settlement negotiations, according to documents filed in relation to the disputed fine. The implicated person subsequently left the company.

Ostendorp blamed penny-pinching by Waste Management for the environmental problems, which health officials say included faulty monitoring of methane gas, piling trash too high, and failing to cover it with dirt every day.

"Waste Management tried to cut their budget and made it almost impossible for anyone to comply with the requirements," Ostendorp said.

The state permit for dumping municipal solid waste at Waimanalo Gulch expires in mid-2008, but the city wants to expand the landfill and continue operating it for at least 15 more years. The city contends that a different landfill site could not be chosen and prepared before the permit expires.

Public and private trash haulers dump about 1,400 tons of garbage and incinerator ash at the landfill per day.

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com.