Ferguson wrongly claimed lawyer told him of negligence

Aformer Saint John city councillor being sued for defamation acknowledged in court Thursday that he wrongly claimed a senior lawyer had told him about evidence of negligence at the city's pension board.

The pension board is suing John Ferguson for allegedly defamatory comments he made starting in 2005 about the board's handling of the pension fund, which had a $47-million deficit at the time. It has since ballooned to more than $190 million.

Ferguson, who was testifying in his own defence, was asked by his lawyer about a city council meeting in April2005 when he said stories were getting back to him of big trouble at the pension board.

"I am told, too, by senior legal counsel, there is damning evidence of gross negligence," Ferguson told the televised council meeting.

Butthat never actually happened, Ferguson now says.

He told thecourt he did have a conversation about the issue with local civic leader Pat Darrah, whom he believed at the timeto be alawyer.

Darrah is actually the long-time executive director of the Saint John Construction Association.

Still, Ferguson contendsthe issue is a minor one because he believes there actually was gross negligence at the pension board.

"I believe it to this day," hesaid.

Ferguson has been accused by pension board lawyers of fabricating events and conversations in 2005 and 2006 to smear the pension board and its members.

His motive, the board claims, was to build a public profile to aid his run for mayor in 2008.

The trial, which resumesFriday,is nearing the end of its ninth week.