Fort McMurray councillor violated conflict of interest rules, investigation finds

A third-party investigation has determined a Fort McMurray councillor violated conflict of interest rules during the 2018 budget vote.

The investigationconducted by auditing firm MNPfound Coun.Krista Balsom voted on 2018 budget moneyfor sixagencies, whichare clients of her marketing firmBalsomCommunications.

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The full investigationhas not been publicly released, buta council report prepared by the legislative services department was posted online Friday evening, ahead of Tuesday evening's council meeting.

Investigators found Balsomvoted on budget allocations tothe Regional Recreation Corporation andnon-profits Fuse Social and the Fort McMurrayHeritage Society, with which she has business relationships.

Balsomalso 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 McMurrayTourism, who also receivefunding from the municipality.

The report acknowledgesBalsomdeclared a conflict when it came to voting on money for the communications and stakeholder-relations department andrecused herself.

Balsomresponds

Balsomsaid in a statement she did not knowingly violate the Municipal Government Act.

Balsom said she sought advice from the municipality'slegislative services as to whether she was in conflict and the departmenttold her she wasn't.

"Iwas advised by the Regional Municipality of Wood Buffalo'slegal counsel I was not in conflict to vote on the matter," Balsomsaid 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."

Balsomsaid she will continue to serve on council and will not step down.

Facing the consequences

The council report suggestsseveral options municipal council can consider.

Council can opt to keep Balsomin her current role or councilor an elector can apply to the Court of Queen's Bench for an order removingthe councillor.

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Council could also decide to impose sanctions instead.

These could include a reprimand letter, orderBalsomto apologize, suspend her from all council committees and other bodies, restrictthe councillor from representing the municipality at events or reduction and suspension of remuneration.

WoodBuffalocouncil will weigh its options at Tuesday's meeting.

The investigation was sparked after a complaint received through the municipality's whistleblowerline in March.

Connect with David Thurton, CBC'sFort McMurraycorrespondent, onFacebook,Twitter,LinkedInor email him atdavid.thurton@cbc.ca