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Nova Scotia

Richmond County CAO takes leave after spending revelations

Warren Olsen, who has been under fire for his handling of public funds, announced Wednesday he is taking medical leave from his job to seek treatment for substance abuse.

Ombudsman found allegations of substance use during financial investigation

Warren Olsen, the CAO of the Municipality of the County of Richmond, spent thousands on alcohol using municipal credit cards, according to a report by the province's ombudsman. (CBC)

The CAO of Richmond County, who has beenunder fire for his handling of public funds,announced Wednesday he is taking medical leave from his job to seektreatment for substance abuse.

"In light of the turmoil that has gripped Richmond County for the last two years, and after reflecting on the draft report of the ombudsman, I have decided to seek a leave of absence to undergo treatment for substance abuse," Warren Olsen said in a statement.

"I believe this is the best course for me, for my family, and for the citizens of Richmond County. I am thankful for the support I have received from friends, council members, and co-workers in reaching this decision."

'Great personal anxiety'

Richmond,a municipality in Cape Breton, is home to fewer than 9,000 people.A consultative report by Nova Scotia's ombudsman called for a forensic examination ofthe county's finances, which RCMPare alsonow investigating.

That report highlighted large credit cards purchases of alcohol by Olsen, with little documentation. It also said he bought alcohol to keep in his office, which councillors drank after meeting.

The Office of the Ombudsman referred allegations of substance use, as well as bullying, harassment and aggressive behaviour by senior officials to the Department of Labour, the report said.

In a brief interview Wednesday, Olsen said the ombudsman's report is "full of inaccurate information."

"Based on some personal issues with certain councillors, who have made it their personal vendetta to get out to get me, they've caused great personal anxiety and stress in my life, on my family, and I, right now, need to take time seek some professional counselling and help," he said.

Olsen declined to elaborate on the nature of his illness, except to say he's doing "not well."

Officials won't speakpublicly

Those implicated in the investigation have time to respond and submit "new and substantial" information before theconsultative report is made final.

The report was made publicearlier this week by CBC News, and detailsquestionable travel and expense filing, primarily by Olsen and former warden Steve Sampson.

The two spent tens of thousands of dollars on travel, alcohol and various "erratic and unorthodox" items chargedto county credit cards, the report said.

Ombudsman staff reviewed three years of documents and interviewed 27 people for the investigation.

'Knew nothing about it'

Warden Victor David said in an interview heonly learned of Olsen's departure fromthe newspaper, thePort Hawkesbury Reporter.

"I knew nothing about it because yesterday, I was at medical appointments all day," David said. "I haven't spoken to the CAO."

Officials in Richmond County have stayed mum aboutthe revelations, citing confidentiality imposed by the nature of the ombudsman'sinvestigation.

With files from Angela MacIvor and Susan Allen