CASUAL OVERSIGHT

I am surprisingly saddened by the news that former IWK CEO Tracy Kitch has been found guilty of fraud. What will her life be like going forward? What happens to her career?

My sadness does not extend to those who appear to have enabled this fraud. Another IWK executive is facing charges arising from Kitch’s use of the corporate credit card.

This conviction raises the question about the board of directors and their oversight. When the

CEO’s expense issue arose, Robert Hanf, former president of Nova Scotia Power and then chairman of the IWK board, said he was never alerted to any inaccuracies. He only became aware of a potential problem following the CBC’s freedom of information requests. How is it that someone put in the position of board chairman because of his business expertise didn’t notice documents were incomplete? A reporter, who probably hasn’t the business background of Hanf, noticed and challenged it. Hanf told the CBC, “The IWK board put confidence in the assurances we were provided. I trusted the information being provided to me had been properly reviewed internally and therefore that it was accurate.”

This seems like casual oversight. It raises the question: “If this can happen at such a highly regarded institution, what is happening at our other boards, commissions and agencies, including the Nova Scotia Health Authority and predecessor authorities?” A line has been crossed which opens all to scrutiny. “Trust us” is no longer an adequate answer.

This conviction shows corporate governance must be taken much more seriously for public boards.

Boards of directors are supposed to be the public’s guardian. They are supposed to ensure operations are true, accurate and managed according to the rules and regulations, as well as being in line with the moral expectations of the public. This is a massive violation.

Allan Lynch,

New Minas