I had to rat on someone for the first time ever
I don't know based on what you said it seems like its probably not your job to be evaluating others performance. As a business owner I really don't like the it's not my job mentality or the he/she makes more money they can do it mentality. I just expect my employees to their job and do it to the best of their ability.
However as tax payers, I guess both you and I have a right and a duty to question the actions of goverment employees and officials. I applaud your efforts to protect the tax payers money from theft. If the engineer in question is in fact only doing his job and your suspicions are wrong there is nothing for him to fear. So my thoughts are if your going to get involved you should have given all the information including the name.