A former Collus financial staffer confirmed she got a bonus after the sale of the utility and was told to cancel a cheque to Paul Bonwick after a CBC story revealed he was under investigation by the OPP.
Cindy Shuttleworth, the financial controller at Collus who replaced Tim Fryer as the chief financial officer in October 2012, testified at the judicial inquiry on Thursday and Friday.
Shuttleworth, currently the senior manager of financial and regulatory report at Epcor Electricity Distribution Ontario Inc., the company that now distributes electricity in Collingwood, received a $15,000 bonus for her work.
“I understood this was in recognition of and compensation for the extremely long hours I was working due to the demands flowing from the transaction over the prior months,” Shuttleworth said at the inquiry.
“I believe the payment did comply with Collus policy on bonus payments at the time, but I am not certain. I was not privy to the board or committee approval process.”
An email from Shuttleworth to someone she refers to as a friend (the name is redacted) shows Shuttleworth telling her friend she received the bonus.
“I did get $15,000 on Thursday for my work closing the PowerStream deal. Paid off my car in full. Shhhhh. Secret,” wrote Shuttleworth in the email.
In her affidavit, Shuttleworth explained she used the word "secret" because she was disclosing confidential salary information.
“I was not told by anyone to keep the bonus secret,” said Shuttleworth.
Shuttleworth’s affidavit also includes details about two payments made by Collus PowerStream to Compenso Communications, a company owned by Paul Bonwick, for consulting work. Bonwick is the brother of Sandra Cooper, who was mayor of Collingwood from 2011 to 2018.
The payments, which totaled $16,950 each, were made in January and February 2013. Shuttleworth said the agreement was made by Collus president and CEO Ed Houghton.
She said she did not review the agreements between Compenso and Collus PowerStream because the amount fell within Houghton’s authorization limits.
“I expected the arrangement with Compenso to be short-term, as Collus PowerStream could not afford to continue paying Compenso $15,000 a month,” stated Shuttleworth in her affidavit.
Soon after making the second payment, Shuttleworth states she was told by Houghton to cancel the cheque.
“I recall he told me Collus PowerStream could no longer retain Compenso in light of the media coverage because Compenso’s reputation was compromised,” stated Shuttleworth.
She cancelled the February 2013 payment, which had been mailed, but not cashed.
One other aspect of Shuttleworth’s testimony and affidavit centred around the fact that the ultimate share sale of Collus to PowerStream was a sale of 50 per cent of the shares of Collingwood Utility Service Corporation, which was a holding company for Collus Power and Collus Solutions (a company that included the water distribution services).
The request for proposal sought bids for 50 per cent of Collus Power. However, the sale changed, according to the Foundation Document. Shuttleworth confirmed the change.
“The decision was made to avoid having the holding company pay taxes for the sale of its shares of Collus Power,” said Shuttleworth. “These taxes would be avoided if it was the holding company that was sold, as the town was the shareholder.”
She said she didn’t know how the final decision to sell shares of the holding company and not Collus Power was made.
Shuttleworth’s cross-examination wrapped up on Friday and she was followed by Pam Hogg, who was executive assistant to Houghton, the manager of human resources for Collus and the board secretary for the Collingwood Utilities Services Corporation, Collus Power, Collus Solutions and Collus Energy.
Hearings continue next week at the town hall council chambers. You can find a hearing schedule here.
