Pelham awaits audit
Town CAO says there is no evidence of fraud
Pelham can account for every nickel it has, CAO Darren Ottaway said at a special meeting Wednesday in council chambers packed to capacity with residents.
“For the record, in public, I can say there is no evidence of fraud by any current or previous Town of Pelham employee … none. I am sure the audit will say that. I can say definitively there’s no money missing from the Town of Pelham,” Ottaway said.
The meeting was held in response to the recent resignation of Ward 1 Coun. Marvin Junkin, comments he made regarding his decision and comments he made regarding an incamera meeting earlier this year.
In his terse letter to council Monday, Nov. 6, he said: “As council continues down a path that I feel is increasingly unethical and dishonest, I have no choice but to resign my position, effective immediately.”
Junkin walked out of council after he handed his letter to the town clerk and attempts by Postmedia to reach him have been unsuccessful.
“This is a very serious topic, there’s a lot of interest in the community about this. There are a lot of people here and we appreciate how respectful you’ve been thus far and hope that respect continues,” said Mayor Dave Augustyn.
Council chambers were packed to capacity and the fire chief and bylaw enforcement officer were seen counting the number of people in the crowd.
Augustyn introduced town lawyer Donald C. DeLorenzo, of Daniel and Partners, who spoke about breach of confidentiality.
DeLorenzo said council business is to be conducted in public, but said there are rare exceptions when it can meet in- camera. Those reasons can include openness and transparency being outweighed by the potential harm to the municipality or a person, and time- sensitive information being released. Subjects discussed during in- camera meetings are to remain confidential.
He said an in- camera meeting was held on Sept. 5 of this year to deal with advice subject to solicitor- client privilege, including communications necessary for that purpose; as well as personal matters about an identifiable individual, including municipal or local board employees.
“The contents of the meeting are to be kept confidential,” said DeLorenzo, adding that confidentially falls under the town’s code of conduct, the Municipal Act and Municipal Freedom of Information Act.
On Oct. 6, the lawyer said the town announced that a third party audit of the town’s records was to be carried out and there were media reports and statements made by Junkin referring to the previous in- camera meeting. Junkin spoke about $ 17- million of debt accumulated by the town since 2008.
“Any councillor or anyone else that breaches in- camera meetings are subject to discipline under the code of conduct, possible prosecution under the municipal act or a breach of trust charge under the criminal code.
“If his ( Junkin’s) statements were correct, then his resignation has essentially allowed him not to go through an investigation and the censure this council could have done … he avoided that. However, you have not, you are still here working on behalf of the town and subject to those provisions. It’s important those be maintained.”
DeLorenzo understood councillors felt their hands were tied in regard to not responding to Junkin’s allegations, which they knew could be inaccurate or complete, because they were still bound by the code of conduct and the oath they took.
“I encourage council to maintain this restraint.”
DeLorenzo said council should carry on with the audit and present it in an open public forum where it could respond to comments and respond with facts.
“Municipal finances are very complex and remind me somewhat of jigsaw puzzles, where every piece touches another piece and you can’t see the whole picture. Rather than respond to headlines, gossip and whatever else is throw out there, it is much more prudent to get the entire picture, put the puzzle together.”
The lawyer said once everything is before the public, council can deal with the subject intelligently and with all of the facts.
Ward 3 Coun. Peter Papp asked if council had any discretion in talking about Junkin’s comments.
“If I wished to disclose anything would I be doing it at my own peril?” Papp asked.
DeLorenzo said if Papp were to talk, he could face censure or a breach of trust charge that would be laid by police.
Augustyn too asked why council couldn’t speak now that confidentiality had been broken and there was confusing information in the public.
“My mother told me, two wrongs don’t make a right. You’re still bound by confidentiality to protect against any potential litigation. Just because someone else breached confidentiality doesn’t mean you should,” the lawyer said.
The mayor asked Ottaway what the next steps were in the process.
“The people are here because they want to know about our finances. When will they get that information?” he asked.
Ottaway said auditor KPMG will be at the Nov. 29 council meeting to present its report, and treasurer Teresa Quinlin said she’ll have a report on the town’s finances as well.
KPMG will come back two weeks later once the public has had a chance to go over the audit to answer questions.
“The public can read the report and digest it, there is a lot of information,” said Quinlin.
Augustyn said council may have to look to a larger venue to host the meeting on the 29th.