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Court to decide if mayor's party violated municipal act

Will lose seat if found in breach

By: Jen Skerritt

Posted: 10/25/2012 1:00 AM | Comments: 0

BORIS MINKEVICH / WINNIPEG FREE PRESS ARCHIVES Sam Katz says he isn't nervous about the pending application. (WINNIPEG FREE PRESS) Photo Store

Whether or not Mayor Sam Katz has violated conflict-of-interest rules and should be ousted from office will soon be heard in court.

In two weeks, a judge will set a court date to hear Joe Chan's application that alleges the mayor has violated the municipal conflict-of-interest act for holding a taxpayer-funded holiday party at a restaurant he owns. If the judge decides the mayor has breached the conflict-of-interest rules, Katz will lose his seat.

Chan's lawyer, David Matas, said these types of cases are rare, but a councillor in the RM of Taché was removed from office for violating the municipal act in 1998.

"A judge has already said there's a case," Matas said Wednesday. "That means the evidence right now is sufficient."

Chan, who manages Cathay House, alleges Katz breached the trust of citizens by unfairly awarding a contract to a restaurant he owns and asked that the office of the mayor "be declared vacant." In 2010, Katz spent $2,915 of public funds on a party for city councillors, department heads and their families at his Hu's Asian Bistro restaurant on Ellice Avenue, according to previously released expense records.

Chan filed a declaration in the Court of Queen's Bench earlier this year that alleged Katz is in conflict of interest. The motion was withdrawn after Chan made some procedural errors.

Matas has since taken on the case and filed another declaration. He said Chan will be cross-examined by Katz's lawyer, Robert Tapper, on Nov. 8. After that, he said the judge will set an official date to hear Chan's application in court.

Matas said he hopes to get a court date as soon as possible and will argue Chan's application should be granted.

Katz said he has only ever had two conversations with Chan, including one following the last civic election, in which he alleges Chan asked him to put Coun. Harvey Smith (Daniel McIntyre) on council's executive policy committee. Katz said Chan was working for Smith during the election.

When asked if he was nervous about the pending application, Katz responded: "Do I look it?"

"As I think you may know, the first time it was basically thrown out and Mr. Chan had to pay costs," said Katz following Wednesday's council meeting.

Neither Katz nor Chan will speak at the application hearing, Matas said, and the judge will review Chan's affidavit and his cross-examination by Tapper. Matas said Katz and his lawyer have not yet filed an affidavit, though they are not required to under the legislation.

Matas said a similar challenge is taking place in Toronto, where Mayor Rob Ford could lose his seat over conflict-of-interest allegations filed by a resident. Matas said the legislation is meant to hold councillors and mayors to account, but is complicated and almost never used.

"It's not like a criminal trial where the accused has to be present. (Katz) doesn't have to defend if he doesn't want to," said Matas.

jen.skerritt@freepress.mb.ca

Republished from the Winnipeg Free Press print edition October 25, 2012 B3

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