A former Melbourne Water manager was feted as Victoria's water professional of the year days before he left the role under an alleged conflict of interest cloud.
Niru Gosavi recently departed as general manager of major capital delivery at Melbourne Water after eight years.
His wife, Avanti Gosavi, worked as chief operating officer and commercial manager at Aqua Metro from December 2017 to March 2022, according to her LinkedIn.
The water project business is carrying out millions of dollars worth of work for the government-owned statutory authority.
Senior Liberal MP David Davis used parliamentary privilege last week to make a series of allegations against Mr Gosavi, including that he failed to declare a conflict of interest regarding his wife.
Mr Gosavi denies that claim.
Mr Davis called for Water Minister Harriet Shing to release the authority's conflict-of-interest register and refer the matter to the police.
In response, Ms Shing confirmed Melbourne Water was looking into the matter.
"I have a full expectation that Melbourne Water will make sure that relevant processes are followed, including as they relate to allegations of the nature that you have levelled," she told the upper house chamber.
In late October, Mr Gosavi was crowned Water Professional of the Year at the Victorian Water Awards.
He was hailed as a "water industry treasure", boasting a 40-year career in the industry.
"(Mr Gosavi) is an expert in capital delivery and widely sought after for his leadership and mentoring," the Australian Water Association said at the time.
Lawyers for Mr Gosavi and his wife said the information raised in parliament was inaccurate.
"These serious allegations have never been put to our client, who has consistently declared that Avanti Gosavi consults with companies in the water industry including companies contracted by Melbourne Water," a Maurice Blackburn spokesperson said.
"Conflict of interest declarations have been approved by Melbourne Water and no concerns have previously been raised with our client.
"He is deeply distressed by suggestion of wrongdoing and looks forward to co-operating with investigators once the allegations are detailed to him."
A Melbourne Water spokeswoman said the body had detected concerns through internal investigations and it was taking "all necessary steps".
"Melbourne Water is committed to upholding the highest standards of integrity and ethical behaviour," she said.
Melbourne Water has faced criticism following last year's major flooding along the Maribyrnong River, which affected about 1500 residents across 600 homes.
In October, a parliamentary inquiry heard Melbourne Water's flood modelling completely underestimated the risk to Rivervue Retirement Village.
About 70 residents of the Avondale Heights retirement village were forced out of their homes when 47 properties were inundated.
Nick Wimbush stepped aside as the independent lead of a Melbourne Water review into the flood event after it emerged he was the sole member of a planning panel that requested flood overlay changes for part of the village in 2015.