Elections Nova Scotia to investigate Richmond County spending

Elections Nova Scotia is investigating after a forensic audit found instances of Richmond County councillors claiming reimbursement for expenses "perceived to be political donations or fees for attending political party events."

The Grant Thornton audit of the municipality's spending was released Tuesday and laid bare questionable expense claims by some councillors and senior staff, such as money spent on alcohol and a credit card bill paid by the municipality for two evenings at Texas adult entertainment clubs.

It also noted seven instances in which councillors had claimed reimbursement for expenses related to political events, including one for the Liberal Party. The total money was $300.

Elections Nova Scotia is now involved. Its director of communications, Andy LeBlanc, said he could not provide any more details about the investigation. He could not say how long it will take.

He said if it uncovers any concerns or violations, the information will be released to the public.

Municipal Affairs could do nothing

Meanwhile at the legislature, Nova Scotia's minister of municipal affairs said there was nothing his department could do to prevent expense claim abuses in Richmond County.

The audit found expense claims by councillors and CAO Warren Olsen were often reimbursed without receipts or other justifications. In one instance, Olsen charged $582 to his municipal credit card for evenings at two Houston adult entertainment venues.

"Council is an independent body," Municipal Affairs Minister Zach Churchill said on Wednesday.

"They have authority to make decisions. The minister does not have the legal ability or jurisdiction to interfere in the daily operations of municipalities."

Churchill said his department cannot get involved unless there are issues of public safety or a municipality is facing financial collapse.

Tried to help

He described the Richmond County situation as a "serious concern" and a point of "significant frustration" but said his department did all it could do.

When a December 2015 audit of Richmond County first raised red flags, Churchill said Municipal Affairs offered to provide professional help to strengthen the municipality's expense policies and financial practices.

That help was refused, he said.

Churchill said the Municipal Government Act is being reviewed and if changes are necessary, they will be made, but he said the situation in Richmond County is unique.

"What we don't want to do is paint all municipalities with the same brush," he said. "This was a localized issue where individuals chose to break rules that their own municipality had around expenses."

Both the Grant Thornton forensic audit and a Nova Scotia ombudsman's report raised concerns about the expense claims of Olsen.

Outgoing county warden Victor David said Wednesday that Olsen is still employed by the county.

He said Olsen has been off work this week on the recommendation of his doctor.