The mayor of Ottawa was charged with bribery-related offences in connection with a 2006 mayoral race on Monday, sending ripples through city hall and the federal Parliament.

The charges stem from an allegation that Larry O'Brien's campaign tried to offer Terry Kilrea, a fellow candidate, a job in return for dropping out of the race.

Kilrea alleges he was offered $30,000 to cover his expenses. Kilrea did eventually drop out of the race, but said he never accepted any money.

Kilrea has also sworn in an affidavit that he was offered a federal appointment to the National Parole Board.

O'Brien has denied the bribery accusation, along with the claim that he discussed a possible appointment for Kilrea with federal Environment Minister John Baird, a Conservative Ottawa MP and the Treasury Board president during the period in question.

In the House of Commons on Monday, Liberal MPs Marcel Proulx and Mark Holland called for Baird's resignation.

Government House Leader Peter Van Loan said the Liberals were making "repeated, baseless smears," against Baird.

Baird, who is at the climate change conference in Bali, has denied ever discussing an appointment for Kilrea.

O'Brien said he was embarrassed by the charges but looked forward to having a chance to clear his name.

"I believe with every fibre of my being that I am innocent," O'Brien announced to council on Monday.

City council planned on holding a special meeting Monday to discuss whether O'Brien should step down as mayor.

"I want to tell council and the citizens of Ottawa that I'm ready, willing and able to continue to work hard on your behalf and do the job that I was elected to do," O'Brien said.

"In order to do the right thing, however, and to allow a proper discussion of the implications of this matter, I will hold back my final decision until I've had a chance to listen to the public."

Critics have said O'Brien should immediately step down from his position until the charges have been dealt with.

"If it was a member of parliament, if it was an MPP, if it was a police officer in our city, they would step down until the charges were dealt with," said Sean McKenny, president of the Ottawa District Labour Council.

But many city councillors said it was up to O'Brien to make the decision.

"If he chooses to ask for some time to deal with this I will happily vote for that," said councillor Maria McRae. "But as far as being part of a cabal or any kind of regime to run Mayor O'Brien to the city limits, absolutely not."

Coun. Diane Deans said it's important for the council to focus on managing the city -- including budget talks currently being held.

"Everyone's total time and attention needs to be devoted to these discussions and to the work of the city," said Deans.

On Friday, O'Brien had challenged the OPP to either charge him or clear him.

The Ontario Provincial Police laid the charges after more than eight months of investigation that included one search warrant and 48 interviews, including Baird.

OPP Supt. David Truax told CTV Ottawa that O'Brien has been charged with two Criminal Code offences.

The formal charges are:

  • Section 121(1)(d) of the Criminal Code, which deals with offering a reward or benefit in exchange for co-operation, and
  • Section 125(b), which involves negotiating a benefit for appointment to or resignation from office "in expectation of a direct or indirect reward, advantage or benefit."

"The allegations are most serious and, of course, present some very complex investigative challenges and some very complex legal issues," Truax said.

Truax said the maximum sentence for those two charges is five years in a penitentiary.

O'Brien will make his first court appearance on Jan. 9.