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Alberta Energy Regulator weighing 'further action' against former executives

AER's interim board is seeking advice from outside counsel following provincial probes that found "reckless and wilful disregard" for the proper management of public funds.

Agency's interim board seeking advice from outside counsel following ICORE probes

A sign for the Alberta Energy Regulator is visible outside a building. There is green foliage visible in the background.
The AER has strengthened its policies in the weeks since the investigations wrapped up, interim chair Bev Yee told a legislative committee on Tuesday. (Kyle Bakx/CBC)

Alberta's oil and gasregulator is weighing"further action"against some of its former executives followingthree provincial probesinto a now-defunctinternational training centre calledICORE.

Bev Yee, interim chair of the Alberta Energy Regulator, told a legislative committee this week the public agency has strengthened its policiesin the time since the investigations wrapped up thisfall.

Asked whether there was anything in its policies that would allow for further investigationor actionagainst those involved, Yeeindicatedthe AER may not be finished dealingwith former staffwith tiesto ICORE.

"The interim board has opted to retain external counsel, which we have already done, to get some advice around that matter, whether there is further action that we could be taking against those individuals," she said Tuesday.

"We have yet to receive that advice but we expect to receive that quite shortly."

Yee did not elaborate on what kind of action might be under consideration.

No one at the AER was available to discuss the matter withCBC News, but the regulator issued a short statement saying itsboard of directors "is currently using outside counsel to evaluate possible options."

The Alberta Energy Regulator, which is funded by a levy charged to the energy sector, oversees the province's oil and gas sector and is expected to ensuresafe and environmentally responsible development.

Earlier this year, Alberta's auditor general, public interest commissioner and ethics commissioner launched probesinto the AER's establishment of the International Centre for Regulatory Excellence, or ICORE, in 2017.

Theyfoundresources were wrongfully used to establish thecentre outside the AER'smandate, while its former CEO Jim Ellis displayed "reckless and wilful disregard" for proper management of public funds.

The auditor general's report said controls to track and monitor expenses related to ICOREactivities were at first non-existent and then poorly implemented.

It also reportedthe tone at the top at AER did not support a strong control environment or compliance with policies and thata "culture of fear" at theAERstifled concerns regardingICOREactivities.

The auditor general estimatedthe total financial impact of ICORE activities on the AER totalled $5.4 million, though $3.1 million was recouped. The AER is still out of pocket $2.3 million, according to October's report.

Yee told the committee on Tuesday thatthe activity related to ICOREwasdriven by a few key individuals and that those individuals are no longer employed by the AER.

UCP MLA Drew Barnes asked Yeeduring the meeting whether those individuals received any severance.

Yee said of the fiveindividuals who were involved, only one received severance, noting the departure occurred prior to the board receiving the results of the ICORE probes and that there was a contractualagreement in place.