Councillors sanction North Bay, Ont. mayor for expenses scandal

At an emotional meeting Wednesday, North Bay city council voted to suspend Mayor Peter Chirico’s pay for 60 days for violating the city’s code of conduct.

A majority of North Bay, Ont., city council voted Wednesday to suspend Mayor Peter Chirico’s pay for two months for his involvement in the corporate credit card spending controversy.

While some councillors argued the mayor and his family have already paid a high price for the scandal, others said action was necessary to restore public confidence.

Wednesday’s meeting was the culmination of months of controversy at city hall since it was revealed that Chirico used the city credit card to pay for thousands of dollars in personal expenses.

Guy Giorno, the city’s integrity commissioner, presented his investigation Wednesday into Chirico’s spending, which he conducted at the mayor’s request.

In his 38-page report, Giorno determined that $5,500 of the $17,200 Chirico charged to the credit card violated the city’s code on conduct. He made it clear that his report was not a forensic financial audit.

The violations involve nearly $3,200 for North Bay Battalion season tickets, which Chirico did not prove to be business-related, $2,200 in golf membership fees that he did not flag “as personal” and didn’t offer to reimburse and $200 on three personal meals that he claimed were for city business, even though only family members were present.

The bulk of the remaining personal expenses -- gas, car washes, pet food, etc. -- were charged to the card with Chirico intending to pay them back through his mileage allowance. While not recommended, Giorno said there were no rules in place at the time prohibiting the practice.

Returned the card in July

Chirico returned the card to the city’s finance department in July. City CAO John Severino signed off on the spending.

Whistleblowers Kevin Ferris and Nicole Peltier, who obtained details of Chirico’s spending through Freedom of Information (FOI) Act requests, called on Chirico to resign and for Severino to be fired.

Chirico made a brief statement to councillors, saying that he has been transparent and cooperative throughout the process.

“I do want to be very clear,” he said.

“All expenses detailed in the report were claimed transparently, and any personal expenses have been repaid in full. When I used the city credit card for personal expenses, it was always understood that they would be reimbursed.”

Peltier began shouting for the mayor to resign about halfway through his statement.

“Remove me. I’m not out of order,” Peltier yelled.

“I didn’t run $17,000 up on the city’s credit card.”

That led to a brief recess and Peltier was asked to leave the chambers. North Bay police were called.

When council reconvened, members squabbled about how long a pay suspension Chirico should face.

Council had three options: do nothing, reprimand Chirico or suspend his pay for up to 90 days.

Motions to suspend his pay for three months and then 80 days were defeated in a 5-5 tie, with councillors Gary Gardiner, Mac Bain, Lana Mitchell, Chris Mayne and Maggie Horsfield all voting no.

Gardiner said the mayor has already paid a high price and that the scandal will take Chirico “out of the next election and that’s a very damaging thing that’s been done to him.”

“This story has been played out in the media and social media to the detriment and well-being of the mayor,” Gardiner said.

“The detriment of his family, his children and his grandchildren and his family name and that is very punitive. He suffered enough.”

Coun. Justine Mallah became emotional when speaking about how the situation has damaged the city’s reputation, the well-being of city staff and how much time has been consumed on the topic.

“The greatest damage has been to the trust our citizens placed (in us),” Mallah said, fighting back tears.

“There have to be consequences for contravening the code of conduct.”

Council approved a two-month suspension of pay by a vote of 6-4, with Horsfield changing her vote to yes.

Coun. Mark King said the situation “will pay a price for those who want to run” for public office again next year.

“We’re at this table representing the public. What I’m able to see around the city is there is a general concern about what has transpired,” King said.

“The mayor contravened the code of conduct and he is accountable. We as a council have an obligation to move at least something forward so that the public can say at least we did something.”

But the 60-day reprimand was not enough for Ferris.

“A couple of these councillors fancy themselves as being the mayor’s attorney for the way they were commenting,” he told reporters after the meeting.

Coun. Tanya Vrebosch was blunt when asked by CTV News if this council can work together until the next municipal election next fall.

“Did you see how we worked tonight? This will be the rest of the term. I’ve told people this has been the hardest council I ever had to work with,” Vrebosch said.

“Where people say we’ve seen a lot of wins, I haven’t seen a lot of wins. I’ve seen a lot of dysfunction. It showed again tonight.”

But Mayne said councillors needed to “have an open mind to make a balanced, fair and informed decision and I believe that’s what council did this evening.”

While the integrity commissioner has filed his report, Chirico still faces investigations by the Ontario Provincial Police and the inspector general of policing.

Chirico did not speak to the media, limiting his comments to the statement he made to council.

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