A WASTE disposal firm has had its contract with Hampshire County Council suspended after being accused of dumping sludge in a New Forest stream.

Investigations have been launched into an allegation made against Glasgow-based EEG, which provides sewer and drain-cleaning services.

A woman says she saw a Scania liquid waste truck ejecting effluent down a bank on the B3054 between Beaulieu and Lymington.

She challenged the workers and claims she was told: “It’s okay, we’re just clearing out the cattle grid for the council and they say it’s okay to dispose of the waste in the stream.”

Cllr Rob Humby, Hampshire’s environment chief, said: “We are very concerned to hear this.

“It is certainly not what we would expect of contractors and sub-contractors working with the county council.

“I have requested a thorough investigation and all operations with that particular contractor have been suspended until the investigation is complete.”

An Environment Agency spokesman added: “Environment Agency officers have visited the site and gathered evidence. The matter is now under investigation.”

A spokesman for EEG declined to comment.

The company’s website says it was founded in 1997 and is “one of the UK’s largest providers of drainage and sewer cleaning services, which also includes inspections and repairs”.

It adds: “Our drainage response teams consist of highly experienced industry professionals who always aim for first-time resolution offering you a fast and effective response. ”

It is illegal to discharge pollutants into groundwater without a permit.

Anyone convicted of doing so faces an unlimited fine and up to five years in prison.