Mile One theft unsolved in 2008 despite police involvement, former councillor says

Gerry Colbert is not surprised more than $100,000 is missing from St. John's Sports and Entertainment — but he is surprised most councillors are staying quiet.

Colbert, a former councillor and deputy mayor of St. John's, had flashbacks to 2008, when $10,000 in cash disappeared from SJSE coffers.

He said the Royal Newfoundland Constabulary was called, contrary to what Coun. Art Puddister said at Tuesday's council meeting, but no charges were laid.

"We couldn't be conclusive on who we should charge," Colbert said. "[The investigation] was over."

The incident is still a hot topic, four years after his last term as a city councillor came to an end.

Puddister raised the 2008 investigation in council chambers on Tuesday night, when referring to the current forensic audit underway at SJSE.

More than $100,000 is currently missing from the taxpayer-funded organization, which operates Mile One Centre and the St. John's Convention Centre.

While other councillors are still saying it could be an accounting error, Puddister said money was stolen nine years ago and more has been stolen now.

While police have not yet been involved in the current audit, the RNC economic crimes unit was involved in 2008.

Despite no charges being laid, Colbert said it's clear the money was stolen after a concert.

"We knew we were out cash, there was no question about theft," he said. "We wouldn't have brought the police in for a simple accounting error on $10,000."

Public money should involve police: Colbert

According to Colbert, he asked the city to implement stiffer checks and balances for SJSE when it came to handling and reporting money, but he doesn't believe adequate changes were ever made.

"It's obvious the city didn't learn from the last one," he said.

Colbert was heated when discussing the city's current handling of the missing money, echoing Puddister's calls for the police to get involved immediately.

He also criticized councillors for not speaking up. So far, Jonathan Galgay has called for a full review of SJSE, while Puddister has revealed the amount of money missing and called for police action.

Sandy Hickman, the council representative on the SJSE board, has said it is too early to call it theft or fraud. He was disappointed details of the forensic audit were given to the press.

Colbert was incensed by the notion things should be kept behind closed doors.

"This is public money," he said. "The second there was even a smell, a hint that this kind of stuff has happened, the first thing they should do is A — go to the police, and B — allow the public to be aware of it.

"Otherwise anybody involved with it can go to work covering their tracks."

City council had people they suspected of stealing the money in 2008, Colbert said, but could never prove it.

"Down at Mile One, there are only so many people that touch money," he said. "Unfortunately, you can do all the forensics you want. If it's not conclusive, you just gotta drop it."

St. John's Sports and Entertainment has an operating budget of $2.49 million this year — $80,000 less than in 2016.