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Banff mayor responds to accusations of financial wrongdoing

A letter being distributed on doorsteps in Banff has made serious allegations of corruption and conflict of interest against Mayor Karen Sorensen, council and administration with respect to the municipality's employee benefits package – which is provided through her husband as the insurance broker
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Banff Mayor Karen Sorensen is defending her actions as an elected official from allegations of having a conflict of interest. EVAN BUHLER RMO FILE PHOTO

BANFF – Banff Mayor Karen Sorensen is defending her reputation in the community after a letter written by two residents started showing up on doorsteps throughout town this week.

Penned by Banff residents Jamie MacVicar and Barry Kelly, the 5,350-word Report to Citizens on the conduct of the mayor alleges criminal wrongdoing and conflict of interest.

However, Sorensen said an independent investigation into this specific complaint ordered by council and an RCMP investigation both found she was not in violation of conflict of interest regulations under the Municipal Government Act.

"The letter contains false allegations specifically of conflict of interest, which are targeted at me and allegations against senior members of Town staff," said the mayor. "Town council takes very seriously any allegation of impropriety by an elected official or staff."

Under the Town of Banff's code of conduct for council, council can order an independent investgation into complaints and that was done earlier this year during an in-camera meeting without the mayor present. 

The independent investigation by Barbara McNeil, however, remains a confidential document. A motion of council is required for the report to be made public at the next council meeting Monday (Aug. 10). 

"I will ask council to consider making public the independent investigator's report in order to disprove what is in my opinion a personal character attack," Sorensen said. "The RCMP and an independent investigation concluded that the allegations are unsubstantiated and completely without basis." 

The alleged impropriety set out in the letter is related to the Town of Banff's employee benefits package provider. The Banff mayor's husband Carsten Sorensen and his company CBS Financial Directions has been one of the brokers providing the coverage package since 2005.

In particular, MacVicar and Kelly claim that by voting to approve of the overall operating budget each year over the past 15 years, the mayor has violated conflict of interest and personally financially benefited as a result. They claim that by not declaring a pecuniary conflict of interest each time and recusing herself, council and administration have engaged in public corruption on a scale that should result in the resignations of senior administration and dissolution of council. 

The benefits package represents $555,909 out of the overall 2020 $53.5 million operating budget. Council does not vote on the budget items specifically, and the mayor pointed out that the contract was awarded by a tender process managed by administration and did not involve herself or council directly or indirectly.

The MGA is specific about what is considered a conflict of interest. Sorensen declared a pecuniary conflict of interest under the act in 2016 when administration was in front of council recommending a review of the benefits package. At the time, Banff spent $20,000 to independently review its benefits package. 

According to the letter from MacVicar and Kelly, their intent was not to determine "guilt or innocence," but uncover the truth they claim has been covered up and resulted in a loss of public trust in Banff's elected officials and municipal government.

They demanded Minister of Municipal Affairs Kaycee Madu dissolve the council and administration and that the mayor be ordered to pay restitution. 

"Those who participated in a cover up should also be held liable, financially and otherwise," they wrote. "In the meantime, this council has forfeited its legitimacy. Its deliberations should be held to an empty chamber. Any attempt now by this council to craft a code of conduct would be disingenuous and unwelcome." 

Sorensen called the allegations laid out against her in the letter "preposterous" and "hurtful."

"I would never put my privilege and this opportunity that I have been given at risk for something that is so simply understood," she said. "The allegations suggest that I acted in my own personal interest when council approved our budget."

She said at the beginning of her tenure on council she sought clarification on whether or not she was in a conflict of interest position with respect to this issue and was advised these circumstances did not qualify under the definition of the MGA.

"I have done nothing wrong," she said. "I can hold my head high because I followed all the rules and regulations and provincial legislation and council has an independent investigation to prove that." 

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