Mayor Jeffrey says rivals have 'failed residents' after motion to hire independent auditor quashed
In a 7-3 decision last month, councillors deprived Jeffrey of permanent auditor general

BramptonGuardian.com
Jan. 2, 2018
Peter Criscione

With the balance of power on council largely out of her control this term, Mayor Linda Jeffrey has suffered yet another defeat at the hands of rivals after they rejected her plans for a permanent auditor general.

In a 7-3 decision last month, councillors deprived Jeffrey of a key piece of her election pledge by voting against the hiring of an independent watchdog.

Jeffrey said there is “no rational decision to support their position” and accused city politicians of “failing” residents.

“Accountability, openness and transparency are three commitments I made to the residents of Brampton.”

Rookie councillor Michael Palleschi called Jeffrey’s push for an independent office that would have added another layer of oversight on top of existing internal controls “a waste of taxpayers’ money.”

“I just don't think we (the city) are ready,” Palleschi said. 

Jeffrey proposed the new hire on the recommendation of Ontario Ombudsman Paul Dubé, who stated in a report last March looking at Brampton’s procurement practices, that an independent auditor would “help re-establish the public’s confidence in the city and ensure that the public trusts the city to act fairly, accountably and transparently.”

From allegations of wrongdoing in the awarding of a half billion-dollar downtown development deal, and pending lawsuit, to questions about land transactions and oversight of finances, the city's reputation is in tatters.

But at an estimated $350,000, Palleschi, whose father Paul sat on council and was central to Brampton’s urban planning and development for decades, argued that the annual salary of an auditor general as well as the money needed to staff such an office would be too costly.

After Brampton’s reputation was seriously damaged by a series of scandals because of city hall mismanagement, supporters of the mayor's plan argue the $300,000 spent annually on an independent auditor could save the municipality millions of dollars in controversial decisions, while helping attract the kind of private sector investment that has previously stayed clear of the city.

Palleschi also questioned the need for another layer of oversight given the “outstanding work” of internal audit staff, including a May report exposing a bonus program that for years paid out hundreds of thousands of dollars to non-union employees without council’s approval.

The internal audit led to a police probe that ultimately cleared former and current staff of wrongdoing. It also poked holes in some of the conclusions made by the auditor, which raised even more questions about the city’s internal controls.

Regardless, Palleschi said employing both an independent auditor general and internal auditor would be “a duplication of work as far as I am concerned.” He's been criticized this term for his support of questionable ventures such as a $1.5 million sponsorship deal with a struggling professional hockey club and the recent $11.5 million purchase of a money-losing golf club.

“I don’t want any more accusations sent out into the public to try to convince any member of council that the auditor general is the right way to go, when things are going very well.”

Brampton CAO Harry Schlange, who overhauled the bureaucracy shortly after taking the helm in 2016, said the only Canadian municipality to employ both an independent auditor general and internal auditor is Toronto “and they have a budget of about $10 billion.”

“Other regions in Ontario at our budget or more, they just have an internal auditor.”

While campaigning on a promise of greater accountability and transparency at city hall, Jeffrey, who has been at odds with her councillors for much of this term, and as a result struggled to carry through key decisions, lashed out at her colleagues, stating “those who voted against an independent auditor general have failed our residents.”

Jeffrey, criticized for not doing enough to expose possible wrongdoing in staff’s awarding of the city hall expansion contract in 2011, said it is “no secret that Brampton’s past is filled with controversy, leading many residents to lose trust in the city.”

Last year, Jeffrey’s attempt to rehire former Ontario Auditor General Jim McCarter to review the financial accountability measures she has introduced so far as mayor also failed.

“In order to rid ourselves of the baggage of the past we need to welcome the scrutiny of oversight.”

Palleschi called the mayor's statements "inaccurate and irresponsible."

"Council was presented an extensive report from the Chief Administrative Officer determining that we did not need an outside auditor."

"Rather than working to bring council together as promised, the Mayor has instead focused an irrational amount of energy over the course of the the last three years on unearthing supposed wrong doing by city staff, to no avail."

Councillors Pat Fortini and Gurpreet Dhillon voted with Mayor Jeffrey. Grant Gibson, Elaine Moore, Gael Miles, Doug Whillans, Jeff Bowman, John Sprovieri and Palleschi voted against.

Regional Coun. Martin Medeiros was absent.