Magliocca’s expenses set to face investigation as council votes 14-0
City auditor plans to appoint someone to take a ‘deep dive’ going back to 2017
City council unanimously voted Monday to investigate Coun. Joe Magliocca’s expenses dating back to at least October 2017, as the Ward 2 councillor showed he has now repaid nearly $4,000 in “alcohol-related” expenses.
In addition to the $2,100 that Magliocca previously repaid for “hosting costs” that included alcohol at the 2019 Federation of Canadian Municipalities conference, the councillor publicly posted receipts Monday that showed he reimbursed the city a little more than $1,800 for expenses he claimed in 2018, as well as a 2019 lunch with integrity commissioner Sal Lovecchio.
Monday’s council vote also will see changes to the way city council discloses spending after a freedom of information request by Postmedia revealed that not all the expenses incurred by councillors are publicly reported.
Magliocca arrived at Monday’s meeting after being absent from council and committee meetings for nearly two weeks. He recused himself from the 14-0 vote, saying that because his expenses are at the centre of the discussion, participating would put him in a conflict. But in a statement Monday morning, he said he “fully supports” another look at his expenses.
Council’s move comes after Postmedia obtained receipts through a freedom of information request showing Magliocca expensed two to three times as much as his council colleagues at the 2019 FCM conference in Quebec City. Ten people have since told Postmedia or confirmed through spokespeople that despite being listed on Magliocca’s receipts, they did not dine with him at the conference.
Council took action to push the investigation ahead after the city’s integrity commissioner recused himself from looking into a complaint from one of the politicians Magliocca listed on his FCM receipts. Chestermere Coun. Yvette Kind says she didn’t sit down with Magliocca in Quebec City, but filed a complaint after she found her name among those attached to a $330 bar tab at an upscale hotel bar.
City auditor Kathy Palmer will now appoint someone to take a “deep dive” into Magliocca’s expenses spanning a little more than two years. Some councillors raised the prospect of going back to the beginning of Magliocca’s time on council, which started in 2013. Palmer said that could be a possibility if problems are found.
The investigation will look at whether issues raised with Magliocca’s expenses are an “isolated occurrence” or whether there are “more systemic factors” that council needs to look at, Palmer said.
She said she would come back to council with a public report, but parts of it might have to be discussed behind closed doors.
Palmer will also present a report into whether there are “red flags” in other council members’ expenses.
The question of who will conduct the investigation and how much it will cost is still up in the air. Palmer said she needed more time to decide whether to hire someone external or tap someone in her office to do the work.
Another unknown is who will recommend any sanctions against Magliocca, if they’re warranted. Mayor Naheed Nenshi said there’s not much council can do if wrongdoing is found. Potential action could include removing a councillor from certain committees or other council appointments.
“By and large, the sanction is the public report. It really is in the court of public opinion,” Nenshi said.
The mayor added that he wants to see the investigation wrap up quickly.
Later, city council will discuss Coun. Jeromy Farkas’s motion that proposes capping councillors’ FCM expenses and forbidding the expensing of alcohol. Currently, councillors are allowed to claim alcohol as an expense as long as they are hosting someone who isn’t another member of city council.
The Ward 2 councillor released receipts from 2018 and 2017 after the municipal election on his website Monday and said he would also post 2019 receipts “shortly.” He added in a statement that “upon reflection,” he has now voluntarily repaid any alcohol-related expenses dating back to the 2017 election.
The online disclosure includes receipts from the city proving Magliocca repaid a little more than $1,800 to the city on Feb. 14. The councillor also provided receipts to Postmedia on Monday showing he repaid a total of $2,102.92 for his FCM conference hosting costs in 2019. The two receipts show one payment was made on Feb. 3, and another followed on Feb. 11.
Receipts for any repayments Magliocca made in the final months of 2017 weren’t provided online, and it’s currently unclear what the total is for that year.
Magliocca’s statement included another public apology, and he said the episode was an “embarrassing mistake” that had “taken a huge toll on my personal life.”
In a text message, Magliocca said he couldn’t talk about his expenses “now that it is under investigation.”
Nenshi said while he doesn’t “recommend” Magliocca comment during the investigation, there isn’t anything specific barring him from speaking publicly.
Asked whether Magliocca’s latest apology is adequate, Nenshi said that’s up to Calgarians.
“As for me, I hold myself to a very high ethical standard, or at least I try to. As a result, I expect others to do the same. I will bite my tongue until we see what the results of the investigation are.”