Town of Hampstead: Several thousands in questionable expenses invoiced to taxpayers by general manager

Bills from restaurants with alcohol, meetings at Disneyworld, gym memberships: The Town of Hampstead's general manager has billed taxpayers hundreds of thousands of dollars in questionable expenses over the past few years.

Also Read: All-you-can-eat buffet with Montrealers taxes at the Montreal Public Consultation Office

The Quebec Municipal Commission (CMQ) made the revelations in an investigative report made public on Thursday and is reminiscent of other cases of misuse of public funds, such as the Public Consultation Office in Montreal.

“Expenses made through credit cards and conditions and benefits granted to executives, including those granted by the General Director himself, are all illegal expenditures. […] and not authorized by the Council,” CMQ wrote in its report this time.

General manager Richard Sonn, who is still in office, uses two Citi credit cards for all purchases, particularly at restaurants, caterers, SAQ and airlines and hotels.

“The costs incurred by the Director General in this way are significant. In 2022 they will total more than $150,000,” we noted.

From 2018 to 2023, the cost of the restaurant reached between $8,000 and $14,000 in some years.

During the inquiry, the general director explained that meetings were held in restaurants because there was no “suitable space” at the city hall of this wealthy municipality on the island of Montreal. And when alcohol is involved in these gatherings, taxpayers are billed for the cost.

At Hampstead Town Hall, Queen Mary Road

Chantal Poirier / JdeM

A meeting at Disney

For the same period, annual expenses of $30,000 to $60,000, paid by credit cards, allowed Mr. Son and some executives to attend meetings and training outside Quebec. A social media conference at Disney in Florida, two trips to Barcelona, ​​one to Chicago and one to Las Vegas are under discussion.

“As all invoices and information related to these conferences and training courses were not obtained, their relevance and reasonableness of related expenses could not be verified during the investigation,” the commission points out.

The city's top official has no authority at all for other expenses by council resolution, including gym memberships.

Executives' subscriptions to a private medical clinic – at a cost of $10,230 last year – have not been authorized by the council for more than ten years.

Also, the commission, working conditions and social benefits were not duly authorized by the municipal council. As an example, the investigation cited a resolution approved to approve a vehicle rental agreement in 2022 for $2,289 per month.

“The resolution does not mention that it is the exclusive official vehicle of the DG,” lamented the report.

A serious case

Many errors have arisen in the control and monitoring of expenditure. “When the expenditure is not justified by the invoice, the controller asks the DG if he accepts the expenditure, nothing more. He also did not establish that the expenses incurred by the DG through credit cards were for municipal purposes,” the report revealed, among other things.

Therefore, the investigation concluded that reprehensible acts had been committed against Hampstead Town “i.e. violations of law, a serious case of misappropriation and misappropriation of public funds”.

CMQ will not ask DG or any executive to reimburse any expenses. However, it recommends that the city put in place a framework specifically for employee use of city credit cards that are subject to the cities and towns law.

A report should be submitted to the next Municipal Council.