Pelham asked to fund audit with developer cash
Despite being told that Pelham’s finances are none of their business, regional councillors are asking the town to conduct an audit that would be paid for with money pitched in by one of its east Fonthill project’s most vocal opponents.
Pelham solicitor Callum Shedden was sent to Monday’s Niagara Region audit committee meeting to deliver a message from town council.
“The town is not going to continue to spend time and money addressing issues that it has already addressed at the regional level, where the Region has no jurisdiction to direct the town as to how it should handle its affairs,” Shedden told committee members.
He also told them that regarding ongoing scrutiny of Pelham’s purchase and financing of property for its east Fonthill development “the town is no longer participating in that discussion.”
Despite the lack of jurisdiction, regional committee members Monday supported a motion by Port Colborne Coun. David Barrick to endorse an offer from Niagaraon-the-Lake developer Rainer Hummel to provide $50,000 in funding, and to ask the Town of Pelham to conduct an independent third-party audit of its municipal credit transaction as well as the land purchased by the town for the development, with the assistance of the Niagara Region procurement and internal controls department, in conjunction with the Region’s audit committee and Hummel.
Responding to a question from St. Catharines Coun. Tim Rigby, Hummel said he has not made a request to discuss the issue at a Pelham council meeting.
Hummel stammered when asked why he hasn’t.
“There is no clear … I don’t really have an answer for you in terms of why. I mean I’m doing business with the Town of Pelham that isn’t going particularly well. You certainly know when you’re not wanted somewhere,” Hummel said.
Rigby asked Hummel if he would approach the town to request an audit.
“I’ll pay for it,” said Hummel, who during his presentation pulled an envelope from his pocket and said it contained a cheque for $50,000 which he’d be willing to pitch in towards the cost of an audit.
“To qualify that,” Hummel added, “I’m not prepared to pay for an audit where someone says: ‘Mr. Auditor, please determine whether or not dandelions are yellow.’”
Shedden’s refusal to answer questions about town finances during the meeting led to apparent frustration among some councillors.
“We’re obviously very disappointed to hear that, given the commitment by the CAO last time to get some additional information,” said Grimsby Coun. Tony Quirk, who chaired the meeting.
Despite being “stonewalled by the Town of Pelham and its representatives,” Barrick said the Region is “continuing to do our due diligence” regarding concerns about Pelham’s finances.
“In a democratic society for any level of government to say they’re not answering questions is unbelievable. It’s outrageous,” Barrick said.
If the Region took similar action “it would be completely unacceptable,” Barrick added, raising his voice.
Pelham Mayor David Augustyn said some councillors “got quite emotional” when Shedden refused to answer questions at the committee meeting.
Augustyn, however, pointed out that the town would be willing to answer questions in a more appropriate forum, such as a Pelham town council meeting.
While the issue has been emotional for others in council and in the community, Augustyn said Pelham councillors have been “absolutely offended” by allegations of impropriety.
“There have been shots fired over the bow of Pelham, but nobody has actually talked to us,” he said.
In an interview, Augustyn said he’d rather see Hummel donate his contribution to a charity like Wellspring Niagara.