Two Staten Island businessmen yesterday lost a waste-hauling contract because they “lacked good character, honesty and integrity,” according to a city ruling.

The Business Integrity Commission, charged with regulating the private-carting industry, rejected an application by Chelsea Transfer Station to handle construction debris.

One firm principal, Neal DeVito, 34, was arrested in July in New Jersey for allegedly swiping $100,000 worth of cardboard belonging to Walmart and Sam’s Club.

DeVito’s partner, Jerry DeRosa, 43, was formerly in business with Anthony Castelle, a convicted racketeer, the commission added.

A Chelsea Transfer lawyer did not return a call.