BANFF – Elected officials in Banff have publicly released an independent investigator's report that looked into allegations of financial wrongdoing against the mayor.
Council voted Monday (Aug. 4) to make the report public, after having previously voted at the beginning of June to keep it confidential. Mayor Karen Sorensen was absent from the meeting.
The report was ordered in January after a formal complaint was made to the municipality by Banff residents Jamie MacVicar and Barry Kelly that alleged the mayor had a pecuniary conflict of interest when she has voted to approve the municipality's overall operating budget.
That's because contained within the $55 million budget were funds for the Town's employee benefits plan provided through Manulife, which is co-brokered by Competitive Insurance Strategies and CBS Financial Directions. CBS is owned by Carsten Sorensen, the mayor's husband, and he has brokered the benefits plan for the municipality for the last 15 years.
The details of the allegations by MacVicar and Kelly are contained within a Report to the Citizens of Banff, which was distributed on the doorsteps of Banff residents earlier this month.
In it, the pair sets out the circumstances that led to their concern about serious ethical misconduct on the part of the mayor and senior administration.
In addition to the complaint made to council alleging a pecuniary conflict of interest under the MGA, MacVicar and Kelly brought their concerns to the local RCMP detachment for investigation of any criminal wrongdoing that may have occurred in the awarding of the contract.
According to municipal officials, the mayor was cleared in the investigation and no charges were laid. However, MacVicar and Kelly expressed concerns the investigation was done locally and not by an officer without ties to the mayor or council.
Banff Staff Sgt. Michael Buxton-Carr issued a statement this week confirming an investigation occurred and that he is confident it was dealt with in a professional and fair manner.
"The RCMP determined through investigation that the allegations were unfounded," Buxton-Carr wrote. "Normally, only in the event that an investigation results in the laying of criminal charges would the RCMP confirm its investigation. While I understand the original complainants have published a letter, their decision to disclose private information does not absolve the RCMP of our duties to maintain the strictest confidence."
The RCMP issued a final report on its findings to the complainants, however MacVicar denied a request from the Outlook to make it public.
"It involves specific charges as it relates to the Criminal Code and since charges were not placed it would not be fair to the parties to air those charges in public," MacVicar wrote. "Furthermore, Buxton-Carr stated that if their was new evidence the case could be reopened, so I do not want to prejudice that either."
The independent investigation ordered by council also did not meet the expectations of the complainants, who claim it was done by someone with "close ties" to the mayor and administration.
The Town of Banff hired Barbara McNeil as an independent investigator to look into the conflict of interest allegations, which fall under the Municipal Government Act. They also tasked McNeil with looking at whether or not the Town's own policies and bylaws were followed with respect to this matter.
By not disclosing this conflict of interest during budget discussions, and by not recusing herself, the complaints alleged there were serious ethical implications to what they considered to be a sole-sourced contract that financially benefited the mayor for more than a decade.
Sorensen did recuse herself in 2016 when administration brought forward a request to review the employee benefits package overall.
MacVicar claims that by doing so, the mayor has proven his and Kelly's point.
"The Municipal Government Act is clear," MacVicar wrote in a written statement to the Outlook. "Conflicts of interest must be disclosed, and the failure to do so results in removal from office. The mayor has not disclosed this contract to the taxpayer or the public employees in 'any' public forum for the past fifteen years. It’s been undisclosed for one excuse after another. Why?
"When in 2016 she did declare her pecuniary interest, the mayor did so because 'her husband is a broker for Manulife,' while not disclosing he is the agent for the Town of Banff employee benefit plan. Why?
"And when exonerated of all wrongdoing by an investigator with close ties to the administration, the council and administration has done everything thus far in its power to keep those details from the public. Why? These are not unproved allegations. These are questions that should trouble all citizens."
McNeil has served previously on Banff's subdivision and development appeal board, as has Kelly.
The complainants claim that because McNeil is known to administration and council, she has "close ties" with them and was not independent.
The Town of Banff does not yet have an official code of conduct for council members. While one is required under changes to the MGA passed by the NDP, Banff is in a unique situation located inside the national park and operating under the incorporation agreement, which has delayed the creation and adoption of the code of conduct.
McNeil used Canmore's code of conduct and the MGA to assess the complaints. The Town of Canmore underwent a process to find an independent investigator to review complaints under its code of conduct, issuing a request for proposals last year. McNeil was the successful candidate and is retained as the investigator for that exact purpose due to her background, according to Mayor John Borrowman.
"I was engaged by the Town of Banff to conduct an independent investigation of a complaint," McNeil wrote in an email to the Outlook.
"As is common practice, I provided a confidentiality commitment. My report has been submitted to the Town. As you will understand, I cannot comment on the report. My experience and certifications are provided on my website."
In her report, McNeil outlines the request from council to investigate the matter; the process used; the issues and allegations raised by the complainants; as well as the evidence and findings.
She found that during four specific council meetings and one committee meeting referenced by the complainants that the mayor had no pecuniary interest, or she properly declared an interest as per the MGA.
"I find that Ms. Sorensen was in proper accordance with the Town of Banff policy and bylaws and also with MGA 172(1) with regard to disclosing her spouse's business relationship with the Town of Banff," McNeil wrote in her report. "I confirm the findings of the Dec. 18, 2019 RCMP investigation report that the Town of Banff employee insurance benefits contract was awarded properly, and that proper process for the contract renewal was followed.
"The RCMP report provides clear explanation of the contract and renewal process."
Councillor Peter Poole commended council for making the report public and for doing the right thing by contracting an independent investigator to look into the issue to begin with.
"To the credit of the complainants, by having given such authority to the independent investigator, the investigation found that your complaints were not vexatious and they were not frivolous," Poole said. "However, the complaint helped us understand the strength of our system.
"But I personally feel like I erred and made a mistake by voting to keep this report confidential the last time we brought it up and for that I apologize."
Poole said the municipality has a strong, reliable financial reporting system, effective and professional auditors, an arms length committee that looks at council and staff pay and benefits packages before each election and thresholds for large contracts that are reviewed by the auditors.
"We have policies for contracting that are strong and keep getting stronger every time council looks at them," he said. "We have a culture that supports all of this to consider conflict of interest in a very open manner."
Poole said as someone who has been the subject of two processes that looked at his conduct with respect to the Freedom of Information and Privacy Protection Act, he took the process to look into the complaint against the mayor very seriously.
"I found the investigator's report satisfied me," he said. "I satisfied me and helped me understand how strong our overall system is."
Coun. Corrie DiManno said as far as she is concerned, now that the investigation has been made public, this matter is finished.
She said council took the allegations very seriously and undertook a fair and independent investigation.
"Council as a whole unanimously supported the third party investigator's report and the RCMP report and we remain unified to take no further action on any of these allegations – it is finished," she said. "Frankly, I am done with this matter. We have more important work to do as we understand the future impacts of COVID-19 on top of our work plan to make Banff the best it can be."
