Westlock County's new CAO Peter Kelly may bring a wealth of municipal governance to the county, but that experience is tempered by some past financial scandals. Council passed a motion at a special meeting Sept.
Westlock County's new CAO Peter Kelly may bring a wealth of municipal governance to the county, but that experience is tempered by some past financial scandals.
Council passed a motion at a special meeting Sept. 2 to appoint Kelly, the former mayor of the Halifax Regional Municipality, to the county's top post.
During his tenure in Halifax, Kelly was involved in some high-profile controversies, including the so-called 'cash-for-concerts" scandal in which Kelly was involved in providing secret loans to a concert promoter. The municipality was left with a $360,000 bill for loans made in relation to a Black Eyed Peas concert after the promoter, Power Promotional Events Inc. (PPE), went out of business.
While the decision to hire Kelly as CAO was made in mid-August, his identity was not revealed publicly until Tuesday, Sept. 2. The Westlock News wasn't able to ask Kelly about his past until Thursday morning when Kelly, reeve Bud Massey and councillors Mel Kroetsch and Dennis Primeau met with the News.
Massey said that in hiring Kelly, which council did with the assistance of recruiting firm James R. Craven & Associates, he was not aware of the controversies in Kelly's past. Knowing now about the issues, he said council still feels Kelly was the right choice.
'We had limited knowledge of some of the issues during the hiring process," he said. 'After it has come to light we have had conversations with Mr. Kelly. During the hiring process we believed that Mr. Kelly was the best person to lead us forward and we still believe that today."
He added there was specific information about the concert in a document package provided by the recruiter, but council did not look into it too closely.
'We didn't pursue it in depth - our recruiting personnel put it in the package but did not flag it as any major issue," Massey said.
Kelly explained his role in the concert loans process was that council had authorized him and the CAO to go out and attract concerts to the community, something he did with several high-profile concerts.
'In this one particular concert things were not going well, from what I recall, and we worked with the promoter trying to front or loan some money until it was paid back," he said. 'Ticket sales were slow, and he had financial commitments he had to meet, so we gave sort of a loan. The intent was that once sales picked up that was going to be paid off."
PEE went out of business, leaving about $360,000 worth of those loans unpaid. Kelly said the loan itself was done without the knowledge of council as a whole, and he was acting on the advice of Halifax CAO, Wayne Anstey and didn't think he was breaking any rules of Nova Scotia's Municipal Government Act.
'I worked with the CAO. Between us we had come up with that process, and I presumed he had worked with staff," he said. 'To my recollection at no time did the CAO say this was contrary to the MGA."
He described his actions as 'na
ďve," and said he and the rest of council took steps to ensure nothing similar would happen again.
'Obviously lessons were learned because the auditor general did come in afterward and he did a report on the whole situation," he said. 'We changed policies and we changed procedures. What happened then will never happen again."
Kelly has also been the subject of questions about his financial ethics in relation to a personal matter in which he was named the executor of a family friend's estate.
According to a story in Halifax-area weekly newspaper The Coast, which was based on Probate Court documents, Kelly mishandled his role. He is said to have written cheques from the estate to himself and to his son, failed to do a proper accounting of the state and missed filing deadlines.
A judge ultimately removed Kelly as executor of the state, and Kelly settled the issue with other heirs out of court. The terms of that settlement were never made public.
Kelly offered little in the way of comment on that matter.
'The probate has signed off on it," he said. 'All funds were there, so at the end of the day the matter is closed and signed off and there is nothing outstanding."
He downplayed concerns that the perception of financial impropriety might interfere with running the business of Westlock County, saying he has never taken any public money and intends to be responsible with public dollars.
'I have never taken any public money. I'm very honest. I'm very careful of my reputation and I try to make sure I protect it all costs. Have I made mistakes over the years? I absolutely have. Have I owned up to them? I absolutely have as well," he said. 'When it comes to public funds in this particular municipality, I will do whatever I can to make sure we maximize the dollars."
Massey said he did have some concerns about the possible perception that the CAO is not on the level, but said he doesn't adhere to that perception, saying that 'the press" can paint an inaccurate picture.
'It's our responsibility to make sure we have good fiscal management and it's our opinion our CAO is supposed to give us good advice," he said. 'Nothing in the background of Mr. Kelly indicates that he would not be able to do that."
He acknowledged the public perception of Kelly's past might pose some problems, but said he's confident Kelly is still the right person for the job.
'Yes it is an issue, and the public has a right to know. So how are we going to deal with that? Transparency," he said. 'That has started here today where Mr. Kelly and council have come together to answer any questions that the press has."
Several Westlock County residents have already raised concerns, phoning and e-mailing the Westlock News office. Most declined to comment on the record, but long-time county resident Carl Larsen said he was shocked when he looked into Kelly's background and doesn't think he's the right choice.
'With all this background and all the scandals ... it's crazy," he said. 'My blood started to boil when I started to read some of this. I don't hire an employee without Googling his name, and that's just to do a tire repair. This guy's dealing with our money and everything else."
Concerns about his past notwithstanding, Kelly said the experience he brings to the table will be a benefit to the county. Kelly served as councillor then mayor of the Town of Bedford beginning in 1985, then served as councillor for the Halifax Regional Municipality followed Bedford's amalgamation.
He served as mayor of the HRM from 2000 to 2012, when he chose not to run for re-election. He told the Globe and Mail in February 2012 that his decision not to run was 'an acknowledgement that I screwed up personally."
In his time as mayor he saw some high-profile successes as well, including moving forward on major public infrastructure projects, and he issued an apology for the forced relocation of black Nova Scotians from the community of Africville in the 1960s.
Kelly holds a tourism degree and a Masters of Business Administration from St. Mary's University in Nova Scotia.
Kelly said his time in government in Halifax is transferable to Westlock County - he represented Halifax County as well as the urban parts of the regional municipality, and said he understands the specific needs of rural governance.
'I do have experience dealing with rural communities and the smaller issues," he said.
In the wake of public concerns about the $150,000 severance paid to former CAO Edward LeBlanc, Kelly and Massey made public several details of the new contract.
Kelly will be paid $140,000 annually, with a six-month probation period. He will be eligible for a severance of four months salary after completing one year of employment. That amount will increase by one month per year of service to a maximum of six months, or roughly $70,000.
Massey said he's happy with the figure, noting it's 'significantly less" that the figure included in the previous contract.
'One of the major issues for us was to reduce the liability of severance pay for CAOs if and when they leave in the future," he said. 'We feel we've done a good job protecting the financial assets of our taxpayers."
