Renfrew council wants OPP to investigate Ma-te-Way expansion for criminal activity

Renfrew – Renfrew Mayor Tom Sidney announced last week that the town will be pursuing civil litigation and involving the Ontario Provincial Police (OPP) for any potential criminal charges in an attempt to uncover the truth behind the financial disaster from the Ma-te-Way expansion project, a construction project with an original budget of $18.9 million for an expansion that may could end of with a price tag of $37 million.

The amount currently sits at more than $35 million, but the town’s finance department is still waiting on outstanding invoices to pay and the 96,000 square foot addition is still not completed despite being more than 18 months behind schedule.

Mayor Sidney made the announcement when he read aloud two motions brought forward after a closed session meeting was held on April 9. Council ended its regular meeting around 8:35 p.m. in order to go into an 83-minute closed-door meeting.

When council members emerged to resume its regular council meeting, taken and council was united in its decision to refer its third-party review into the Ma-te-Way Centre's expansion project to the OPP.

In addition, a recorded vote was taken for a second motion which read that council provided instructions to legal counsel on proceeding with a claim of fraud, fraudulent misrepresentation and breach of good faith pertaining to the ongoing Ma-te-Way third-party review. The motion was passed with unanimous consent.

Review Leads To Possible Legal Action

The third-party review that Mayor Sidney referenced, is a comprehensive review undertaken by WCSC Consulting after they were hired in June 2023. The auditors have analyzed more than 80,000 documents and conducted more than 200 interviews with current and past elected officials.

They have also interviewed current and past staff members along with some of the contractors involved in the 96,000 square foot expansion to the town’s recreation complex.

Council directed staff to report back on April 23 on a preliminary action plan to address the findings of the review and to extend the mandate of the third-party company to finalize their review of the project, "including competition of their fraud investigation and detailed financial review."

When reading the motions, Mayor Sidney stated that “council directed the town clerk to notify the OPP of a pending complaint pertaining to the third-party review, and instruct WSCS Consulting, which conducted the review, to provide all materials to the OPP no later than June 30.”

WSCS Consulting presented council with an update on March 9 after they tabled The Ma-Te-Way Third Party Review: Draft Final Report, a damning 88-page report documenting a major lack of accountability, transparency and staff training at various steps of the project.

It highlighted several examples of former staff ignoring town policies in terms of tendering of contracts, lack of written documentation including financial reports to council despite requests from elected officials for detailed progress reports on the Ma-te-Way construction, and the lack of oversight by previous council in order to safeguard against waste of tax dollars.

CAO Outlines Process

Council’s bombshell announcement to pursue legal action was the major topic of discussion among residents and naturally, the rumor-mill was active with many wondering who might be investigated. At this point the town is not identifying any individual or company that may be sued nor is it flagging anyone to the OPP.

Robert Tremblay, the town’s first Chief Administrative Officer (CAO) since his hire in June 2022, noted potential legal or criminal actions do not include any current staff or elected. He said any potential investigation may include an individual or individuals who no longer work for the town.

According to media reports, Mr. Tremblay stated, "we were always looking at getting to the truth of the matter, learning from the process, but also if there was any wrongdoing that would come to light as part of that, so that's why we're referring the matter and pursuing a complaint to the OPP."

He added it was council’s desire to involve the OPP because the elected members felt it was necessary at this time to begin the process at the earliest opportunity.

Mr. Tremblay told the Leader the original auditor’s mandate has been expanded to include investigating potential fraud and criminal activity.

“The town selected a qualified consultant who is a certified fraud investigator,” Mr. Tremblay said. “The extended mandated allows for a deeper dive on fraud as well as a more fulsome financial review and a report will be coming to council on April 23, 2024.”

When the OPP become involved, they will require access to town records as part of their investigation and Mr. Tremblay indicated that council authorized town staff to assist them in their inquiry while at the same time council proceeds with its own legal options.

“The OPP has been made aware of an upcoming complaint and the town clerk was directed to advance the complaint and that all materials be handed over to the OPP no later than June 30,” he said. “The town has connected the OPP and fraud investigator and council has directed legal counsel to proceed with civil proceedings. This will occur at the same time as the referral to the OPP.”

Mr. Tremblay added that legal counsel will be reporting back to council in the weeks ahead prior to a formal filing and he wants residents to understand that council is still committed to implementing many of the recommendations and findings of the report presented to them on March 9. The report contains more than 60 recommendations that will help ensure accurate financial accuracy and responsible managerial oversight to ensure future projects are accountable and staff follow policies and procedures.

Bruce McIntyre, Local Journalism Initiative Reporter, The Eganville Leader