A judicial inquiry has found that Mississauga Mayor Hazel McCallion was in "a conflict of interest" when she promoted a real estate deal that involved her son's company. The mayor welcomed the report's recommendations, and said she would have made different choices had she known her actions fell under common law.
Justice J. Douglas Cunningham released his findings Monday in a 386-page report. He was tasked with probing McCallion's actions when she promoted a deal that called for World Class Developments to build a $1.5 billion hotel and convention centre complex in the city's downtown. Her son, Peter, was a principal at the company.
Cunningham also looked at McCallion's involvement in promoting the company's interests when the deal collapsed and the company was negotiating a settlement with the landowner.
In his report, Cunningham concluded that McCallion knew of her son's role as a real estate agent in the deal, and should have known of his ownership interests in the company.
"Given the mayor's knowledge of her son's pecuniary interest, I find that her actions in promoting WCD amounted to a conflict of interest, both real and apparent," Cunningham wrote.
"It is no answer for the mayor to say that her actions were done for the benefit of the City of Mississauga when her son stood to make millions of dollars if the deal was concluded."
Cunningham said McCallion did not break any municipal conflict of interest guidelines, but did contravene common laws.
In his report, Cunningham proposes changes to the Mississauga Code of Conduct and urges the city to establish a new job of integrity commissioner, among other recommendations.
Moments after its contents were unveiled, McCallion called the report "excellent" and said had she known that her conduct as mayor fell under common law she would have acted differently.
"If I had known the common law applied and was a part of the guidelines that we operate under, I would have not proceeded the way I did," McCallion told CTV Toronto's Natalie Johnson. "But at the same time, the reason I proceeded at the time was my obsession of trying to get a convention centre a hotel in the city core."
McCallion, 90, said she particularly likes the idea of establishing an integrity commissioner for elected officials to consult.
Cunningham said it was possible McCallion did not fully understand her son's level of involvement with WCD. However, he said she should have known enough to ask more questions and fully disclose her conflict.
"With respect, the mayor ought to have given the WCD project a wide berth. A member of council cannot promote the financial interests of family members and must avoid any appearance of impropriety," Cunningham said.
Cunningham also said he came to his conclusions "with a measure of regret," taking into account McCallion's long history of public service.
His report is the culmination of a two-year inquiry that cost $7 million.
With files from The Canadian Press
