Ottenheimer sacked without cause
Former Tory MHA, appointed by PCs to head housing corporation, will get severance
John Ottenheimer says he is “truly disappointed” that the provincial government decided this week to fire him without cause as CEO of the Newfoundland and Labrador Housing Corp. (NLHC).
Ottenheimer said he expects to be paid 14 weeks severance — which works out to about $40,000 based on his previously reported $160,000 annual salary.
The provincial government issued a news release Tuesday afternoon announcing NLHC chief financial officer Tom Lawrence will assume the job of CEO on an interim basis, until the government can find a person to fill the job permanently.
The news release made no mention of the circumstances surrounding Ottenheimer’s departure.
The Telegram requested an interview with Seniors, Wellness and Social Development Minister Sherry Gambin-Walsh. She would not make herself available to answer questions, but a spokeswoman issued a statement on her behalf.
“As a government, we are not satisfied with how this position was filled in 2015 and, therefore, the contract was terminated,” Gambin-Walsh said in the emailed statement. “The contract term was approaching its first anniversary on July 27, 2016 and this presented the opportunity to review the contract.”
The province’s new Independent Appointments Commission will select the new CEO.
Ottenheimer was appointed as CEO of the Housing Corp. by then-premier Paul Davis.
Ottenheimer was a prominent member of the PC party, a lawyer and a former government minister, and he ran for the party leadership against Davis. The appointment to the NLHC last July was widely seen as a political patronage appointment.
Ottenheimer’s contract was for five years, so it came as a surprise this week when the government announced Lawrence would fill his job. The official government news release made no mention of the circumstances surrounding Ottenheimer’s departure.
He said he was called in to Confederation Building and told by the clerk of the executive council that his contract was being terminated, effective immediately.
“I was told that government wishes to move forward and to apply, I guess, the provisions of the new Independent Appointments Commission, and that’s essentially the reason that was given to me — nothing more than that,” he said.
NDP MHA Gerry Rogers said that last year when he was appointed, she thought it was pure patronage, but since then, she was impressed with the work Ottenheimer did.
“He had a great handle on what was happening and what was needed,” Rogers said.
“I am amazed that government would let him go at this point.”
If there was any tension between Ottenheimer and the new Liberal government elected in November, he said he wasn’t aware of it.
“I felt I had an excellent working relationship with our minister,” he said. “I met with Minister Gambin-Walsh at least once a week — at times more than once a week.”
Davis, who is now leader of the Official Opposition, said the government’s firing of Ottenheimer is deeply hypocritical.
“To take him out strictly for a political purpose, I think flies in the face of what this government said they’re going to do, taking the politics out of those kinds of decisions,” Davis said.
“As a government, we are not satisfied with how this position was filled in 2015 and, therefore, the contract was terminated.” Sherry Gambin-Walsh, minister of Seniors, Wellness and Social Development