The co-director of Greenlife Resource Recovery,which supplied recycling mulch used around Rozelle,previously operated a landscaping supply business without the proper licence.
It’s the first time asbestos containing mulch has been detected outside the parklands.
Rozelle Parklands will need regular maintenance to ensure it remains safe when it is reopened.
The park,which opened only last month,will remain closed after more asbestos samples were discovered by investigators.
The contamination was discovered only after a parent found material that looked like asbestos in mulch their child brought home.