North Bay’s top financial officer wanted to revoke mayor’s credit card

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North Bay CFO wanted to revoke mayor's credit card

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Margaret Karpenko, North Bay’s outgoing chief financial officer, recommended in 2024 that Mayor Peter Chirico lose his credit card, after Chirico used the card to pay for thousands of dollars in personal expenses.

Karpenko, who was announced as the new CFO of Greater Sudbury on Friday, made the recommendation March 14, 2024, in a letter to city CAO John Severino.

In the letter, she said she discovered items that “required the immediate attention of the CAO.”

“It has been discovered that the corporate credit card belonging to Peter Chirico has been used to purchase a number of membership/expenses which are not identified under any bylaw,” Karpenko wrote.

It was her understanding that Chirico had been spoken with about his improper use of the credit card, she said, adding that it was clear “further communication with the individual are required.”

She recommended that his “credit card privileges (be) revoked and the card be immediately returned to the finance department.”

That didn’t take place, however, and a Freedom of Information Act request uncovered more questionable expenses charged to Chirico’s corporate credit card late into 2024.

“Actions, either unintentional or deliberate, that undermine the trust of the community, can have serious consequences for both the individual involved and the reputation of our municipality as a whole,” Karpenko wrote.

The letter was one of the documents uncovered through another FOI made by Coun. Tayna Vrebosch.

“I know we have good staff and I know that if something was happening, somebody would have said something,” Vrebosch said Friday.

“So when I did that FOI, I made sure that I asked for every piece of correspondence in regards to the mayor’s spending and with all staff.”

The documents released in her FOI show that in 2023, an interim budget analyst sent an email to the city’s director of strategic initiatives about concerns they were seeing.

Repaid through payroll deductions

And a letter from Chirico dated March 22, 2024, said he wanted to repay $6,139.48 in personal expenses he charged to the corporate card through payroll deductions.

The controversy surrounding Chirico centres on another FOI that found he charged more than $16,000 in personal expenses on the corporate card in 2023 and 2024.

Those expenses include cigarettes, dog treats and golf memberships. He has said he won’t resign over the controversy and called on city integrity commissioner Guy Giorno to investigate.

A call for a forensic audit of the mayor’s expenses by some members of city council was defeated by a 7-3 vote.

On Friday, the North Bay Police Service issued a news release in response to several questions they have received about whether they have launched a criminal investigation into the matter.

Police said they can’t comment specifically on Chirico, but said “that police services have a responsibility to conduct investigations into complaints or reports of criminal activity.”

Since Chirico sits on the North Bay police services board, North Bay police said they couldn’t investigate him because of a conflict of interest.

“Any complaint or report pertaining to a member of the North Bay police services board would be referred to another police service for investigation,” the release said.

Anyone who believes that any member of the board has committed misconduct can file a complaint with the inspector general here.

“If there are grounds to believe that misconduct has occurred, the inspector general is required to investigate,” North Bay police said.

“If a complaint is received by the board or the chief, it must be forwarded to the inspector general.”

Complaints made directly to North Bay police would also be forwarded to the inspector general, police added.

Vrebosch said the revelations have people in the city “angry” and said the issue won’t go away.

“I keep telling them, I said ‘North Bay, keep getting loud” she said.

“’Keep sending those emails. Keep making phone calls.’”

For her part, Karpenko resigned from her job in North Bay on Thursday and will formally become CFO in Greater Sudbury in September.

“I’m honoured to step into the role of executive director of finance and chief financial officer and to join the City of Greater Sudbury team,” she said in a news release Friday.

“I look forward to working collaboratively with staff, mayor and council to ensure the city is well-positioned to support its growth, advance strategic priorities and embrace future opportunities.”