McCallion’s actions conflict of interest: inquiry

Mississauga Mayor Hazel McCallion’s involvement in a multi-million dollar land deal involving her son was a clear conflict of interest, according to the results of a judicial inquiry.

Despite the damning report, McCallion said Monday she would not resign.

“Let me be clear: I have acknowledged from the outset that I was in conflict of interest with regard to WCD. I declared this to council as I was required to do under the Municipal Conflict of Interest Act,” McCallion said after the report was released.

“I did not attempt to influence either council or city staff. That is a fact and the commissioner acknowledges this in his report.”

Justice Douglas Cunningham led the near-two-year, $7-million inquiry into McCallion’s actions and released his 386-page report Monday.

“Given the Mayor’s knowledge of her son’s pecuniary interest, I find that her actions in promoting WCD [World Class Developments] amounted to a conflict of interest, both real and apparent,” Cunningham’s report stated.

The inquiry was launched in 2009. McCallion’s son Peter, a real estate agent in a deal between World Class Developments and the city to build a high-end hotel and convention centre near Mississauga city hall, testified he wasn’t aware he was a part owner of WCD. He stood to benefit financially from the  $14.4-million plan.

“Indeed, I have found that the co-owners [of City Centre lands] would not have entered negotiations with WCD absent her involvement,” Cunningham added.

Cunningham found McCallion intervened in the land deal on numerous occasions, including after the co-owners terminated the deal. The Mayor attempted to have the litigation settled.

“Given Peter McCallion’s pecuniary interest in the transaction, it was improper for the mayor to repeatedly use her office on behalf of WCD. This finding is supported both by the common law and common sense,” he wrote.

It was alleged that Mayor McCallion pressured the Ontario Municipal Employees Retirement System (OMERS), which owned the land, to go ahead with the deal — a move she thought was important to the development of the city. The mayor denied the allegation.

Sheriden College is building a campus on the site.

The plan failed after WCD was unable to secure a hotel deal for the vacant land and the land owners pulled out.

WCD then launched a lawsuit, which was settled for $4 million.

At the end of the judicial inquiry report, Cunningham praised McCallion’s leadership.

“I have seen first-hand the Mayor’s careful stewardship of the long-term interests of Mississauga. I have every confidence in her leadership abilities,” he wrote.

The inquiry results did show McCallion was in compliance with the Municipal Conflict of Interest Act but her discussions with private parties involved in the deal didn’t fall within its jurisdiction. The report stated she was in conflict of interest under common law principles.

“I endorse the commissioner’s suggestion that there has to be a practical, low-cost way to ensure that municipal councillors can seek advice and understand these issues,” McCallion said.

Here are some highlights of Cunningham’s report:

-Mayor had an obligation to make further inquiries to her son to fully understand the nature of his interests.

-Mayor had an obligation to keep council informed on her private interventions on WCD’s behalf.

-The mayor’s involvement created uncertainty for the vendors and ultimately led to unnecessary costs.

-Judge doesn’t accept mayor’s answer that her actions were done for the benefit of Mississauga when her son stood to make millions if the deal was concluded.

Cunningham issued several recommendations, including amending the municipal code of conduct and strengthening the office of the integrity commissioner. He suggested that Mississauga should consider creating a database containing a list “of all declared or known conflicts of interest.”

McCallion, 90, has been the mayor of Mississauga since 1978.

With files from Francis D’Souza