YELLOWKNIFE (April 25, 2012) - On April 23, 2012, representatives from the Department of Municipal and Community Affairs presented Hay River Town Council with a report detailing the results of the investigation into the concerns raised by former mayor Kelly Schofield about the town’s operation. While the report points to a number of issues regarding the town’s operation, there was no evidence that there has been any misappropriation or other wrongdoing.

“After our investigation, we have concluded that there was no criminal wrongdoing by the council or administration of the Town of Hay River,” said Robert C. McLeod, Minister of Municipal and Community Affairs. “MACA has worked directly with the town and has provided 18 recommendations. The department will continue to support the town in the implementation of these recommendations if requested.”

“I am quite satisfied with the report. It puts to bed the idea that there were wrongdoings occurring at Town Hall,” said Hay River Mayor Ken Latour. “The findings and recommendations would be typical for many municipalities. The report does not say things are broken, it says there is room for improvement, and we are aware of that. Since this investigation was initiated two months ago, we have already made many improvements, and Council, administration and I will continue on this path.  We appreciate the recommendations from MACA as well as their commitment to assisting us in implementing them.”

On February 27, 2012, Mayor Kelly Schofield resigned his position on the town council. In his resignation letter, he stated four reasons: 1) misappropriation of municipal expenditures, 2) incomplete council-directed tasks, 3) breach of confidentiality within council, and 4) lack of support by majority of council. While the last three issues are internal to the operation of the town and its council, the first was a serious allegation. Mr. Schofield then asked the Minister of Municipal and Community Affairs to review the conduct of the town’s council and administration.

The Minister responded by assigning MACA staff to investigate. MACA staff conducted two on-site visits and interviewed a number of people involved in the town’s operation, including town staff, the former mayor, the acting mayor and the town’s auditors. The following conclusions were reached:

At no point in the investigation did the team find any evidence that the SAO had done anything that was criminal or dishonest so that he would personally benefit from the resources of the Town. Given the team’s understanding of what has transpired over the past 18 months, the allegation that there has been “misappropriation” is not founded. What the team heard was that there was poor communication, inadequate consultation, weak inter-personal skills and lack of procedure followed. In response to this there was a general willingness from staff and Council to move forward to accept responsibility for past errors, and to seek more positive relationships.

There are eighteen recommendations in the report, focusing on addressing some of the operational issues that were discovered. The recommendations are operational in nature and range from supporting the development of the administration and council through training and professional development to updating bylaws and policies to better reflect the current circumstances of the town.  In particular, bylaws related to council procedures and procurement processes could be updated.

MACA staff were pleased by the level of cooperation they received and by the efforts they saw to improve the relationships within the administration and between the administration and the council. The department will be available to assist the town in implementing recommendations if requested.


For more information, contact:

David Maguire
Communications & Web Advisor
Municipal and Community Affairs
Government of the Northwest Territories
p. 867-920-3092