Toronto councillors want answers on Hydro contractors with ties to John Tory
Councillors Gord Perks and Janet Davis have asked what Bob Richardson and Nick Kouvalis, veterans of the mayor’s election campaign, are doing for Toronto Hydro.

thestar.com
By David Rider
Oct. 27, 2016

Two city councillors are demanding answers from Toronto Hydro about the hiring of key figures from Mayor John Tory’s 2014 election campaign as consultants on a possible privatization of the city-owned utility.

Gord Perks and Janet Davis sent an “administration inquiry” to the city clerk Thursday regarding Hydro’s use of public affairs firm Edelman Canada and pollster Campaign Research.

The Star reported last week that Edelman’s Bob Richardson, who co-chaired Tory’s successful 2014 mayoral campaign, is working on issues related to the Hydro privatization push with Campaign Research co-owner Nick Kouvalis, a key strategist in Tory’s election win who’s also expected to run the mayor’s 2018 re-election bid.

The councillors want to know what work the firms are doing, when they were hired, how much they are being paid, when Hydro’s board of directors were notified of the hiring and if Hydro consulted any city council members or city staff on the decision to seek external expertise.

“I’m deeply troubled that former political operatives of Mayor Tory are being paid with public money to do undisclosed work around the privatization of Toronto Hydro,” Perks said in an interview.

However, Perks noted that Toronto Hydro might not have to answer the questions. Administrative inquiries go to the city manager but he does not control Hydro, an arm’s-length agency with its own board of directors.

If Hydro refuses to answer the questions, that would be a “bad sign” about privatization, he added.

Richardson declined last week to confirm his role, saying it’s up to firms to decide if they want to reveal their contractor list. Kouvalis has not responded to the Star’s inquiries.

Tory spokeswoman Amanda Galbraith last week called Richardson and Kouvalis “two of the best and brightest in their respective fields” but added “The mayor’s office has no role in hiring decisions at Hydro or any other city agency.”

In the 2014 campaign, Tory seemed to reject Hydro privatization - likening the idea to a fire sale - when rival Karen Stintz proposed a 10 per cent sale to help fund transit expansion. But in the fall of 2015, sources say, Tory’s office took a keen interest in city council appointments to Hydro’s board.

Appointees confirmed by council last December included: David McFadden, former Progressive Conservative MPP and chair of the pro-privatization Ontario Energy Association; and Tamara Kronis, a lawyer-turned-goldsmith who was operations director for Tory’s campaign.

Appointed to the Toronto Hydro-Electric System Ltd. board was Case Ootes, a former city councillor who was named to Tory’s transition team immediately after the election.

Last January the Star revealed that Tory advisers and senior staff had started laying groundwork for a partial sale of the utility, and that Hydro executives had initiated extensive financial analysis and research on the case for a partial sale.

Tory said at the time he knew of no such plans. In May he joined city manager Peter Wallace in saying city council should consider the partial sale of city assets including Toronto Hydro to help fund transit expansion and social housing repairs.

Council voted in July to direct city staff to study and report back on possible asset sales. In September, Tory used a major speech to argue, “We have an obligation to look at all the options including unlocking the value that already exists in Toronto Hydro, while keeping (a majority of) it in public hands.”

In response to the Star’s requests for an interview with Toronto Hydro chief executive Anthony Haines on privatization plans, the utility’s communications director Brian Buchan has replied: “The decision to sell any part of Toronto Hydro is the decision of our sole shareholder, the City of Toronto. Toronto Hydro does not comment on market speculation or rumour.”