Former mayor Sandra Cooper faced questions yesterday at the judicial inquiry hearing on the confidentiality of the Collus share sale and how some people appeared to know about it before it was made public.
Cooper was on the witness stand for a second day this week, answering questions from the judicial inquiry lead counsel Kate McGrann. Today, participants with standing will have a chance to cross-examine Cooper.
McGrann’s questions included reference to an email from Paul Bonwick to Brian Bentz, president and CEO of PowerStream, and John Glicksman, PowerStream’s chief financial officer at the time of the sale where Bonwick told the men he had “learned Collus has completed their evaluation using KPMG.”
Bonwick is the mayor’s brother, and his company, Compenso Communications, was contracted by PowerStream prior to the Collus sale.
KPMG was the consulting firm hired to conduct a valuation of Collus. They were also hired to put together the terms of the request for proposal for the sale. They presented a draft evaluation and option analysis report to the Collus board on May 24, 2011. The email from Bonwick to PowerStream executives was sent June 3, 2011.
McGrann asked Cooper if the KPMG work was being kept confidential and whether or not it was public on June 3, at the time Bonwick sent the email.
“I don’t recall at this point in time whether it was or not,” said Cooper. “Whenever it would become public then it could be presented, but publicly. However … if it was to be kept confidential, it was confidential in my mind.”
McGrann asked if Cooper knew how Bonwick knew KPMG was finished the draft valuation.
“No I dont, and my name is not attached to that [June 3] email,” said Cooper. “I know that it wasn’t me. That’s what I do know.”
Ed Houghton, president and CEO of Collus, brought the valuation report and a recommendation to pursue a strategic partnership option for Collus before Town of Collingwood council in an in-camera session on June 27, 2011. Cooper said she understood the information presented at the time was confidential.
On Nov. 17, 2011, the day after bidders submitted their bids for the Collus share sale, Collingwood council met in camera again for an update. The minutes of the meeting show council was informed Collus staff were preparing to issue a press release announcing a public information session regarding the sale process on November 22, 2011.
“It looks to us like this is the first time that the public is advised that there has been an RFP process or that there’s a consideration for a strategic partner for Collus Power,” said McGrann. “Is that what you remember?”
Cooper said she couldn’t recall the date it went public.
Later, McGrann brought up an email from Ron Emo, a former Collingwood mayor and a member of Cooper’s election campaign team sent Sept. 25, 2011, two months before PowerStream was selected as the successful bidder in the Collus share sale.
In the email, which was sent to Cooper and three other former members of her campaign team, Emo said: “I don’t know what’s going on with Collus and PowerStream, but it’s not something that should be done behind closed doors.”
He further references selling off part of the utility, and that it wasn’t part of the campaign.
Cooper said she did not share information about what was going on with Collus and PowerStream.
“But there could have been whispers out there, and I’m guessing at that,” said Cooper.
Later, Cooper said she wanted an in camera update for council from Collus “to dispel rumours.”
McGrann asked if there were a lot of rumours.
Cooper said she hadn’t heard rumours until she received Emo’s email in September. She said she did not ask Emo where he heard there was something going on between Collus and PowerStream.
“I didn’t feel the need to ask ‘where did you hear that rumour from,’” said Cooper. “To me it was a rumour.”
The judicial inquiry is charged with investigating the 2012 sale of 50 per cent of Collus shares to PowerStream and the subsequent spending of the money obtained in the sale.
The hearings are public and can be live-streamed here. Today’s hearing will include cross-examination of Cooper by other parties involved in the investigation.
