Fort McMurray councillor violated conflict of interest rules, investigation finds
David Thurton | CBC News | Posted: June 23, 2018 7:50 PM | Last Updated: June 23, 2018
Coun. Krista Balsom says municipal lawyers told her she wasn't in conflict
A third-party investigation has determined a Fort McMurray councillor violated conflict of interest rules during the 2018 budget vote.
The investigation conducted by auditing firm MNP found Coun. Krista Balsom voted on 2018 budget money for six agencies, which are clients of her marketing firm Balsom Communications.
The full investigation has not been publicly released, but a council report prepared by the legislative services department was posted online Friday evening, ahead of Tuesday evening's council meeting.
Investigators found Balsom voted on budget allocations to the Regional Recreation Corporation and non-profits Fuse Social and the Fort McMurray Heritage Society, with which she has business relationships.
Balsom also disclosed to investigators her company has existing contracts or a business relationship with the Arts Council Wood Buffalo and the Wood Buffalo Library and Fort McMurray Tourism, who also receive funding from the municipality.
The report acknowledges Balsom declared a conflict when it came to voting on money for the communications and stakeholder-relations department and recused herself.
Balsom responds
Balsom said in a statement she did not knowingly violate the Municipal Government Act.
Balsom said she sought advice from the municipality's legislative services as to whether she was in conflict and the department told her she wasn't.
"I was advised by the Regional Municipality of Wood Buffalo's legal counsel I was not in conflict to vote on the matter," Balsom said in her statement. "I then proceeded on what I perceived was the best legal advice available to me and did participate in the votes on the grant program request.
"I have since come to understand that the advice I received was in fact wrong and these votes and participation in debate on them were an error that I have since recognized."
Balsom said she will continue to serve on council and will not step down.
Facing the consequences
The council report suggests several options municipal council can consider.
Council can opt to keep Balsom in her current role or council or an elector can apply to the Court of Queen's Bench for an order removing the councillor.
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Council could also decide to impose sanctions instead.
These could include a reprimand letter, order Balsom to apologize, suspend her from all council committees and other bodies, restrict the councillor from representing the municipality at events or reduction and suspension of remuneration.
Wood Buffalo council will weigh its options at Tuesday's meeting.
The investigation was sparked after a complaint received through the municipality's whistleblower line in March.
Connect with David Thurton, CBC's Fort McMurray correspondent, on Facebook, Twitter, LinkedIn or email him at david.thurton@cbc.ca