Fort McMurray councillor files for bankruptcy while his companies rack up $3M debt

A Fort McMurray municipal councillor playing a key role in the region's wildfire recovery has filed for personal bankruptcy and his companiesowe more than$3 million, court documents show.

ATB Financial is selling an office suite and parking spaces owned byAllan Vinniafter taking legal action against his companies. A judge approved the salesin December 2016.

Court documents stateVinni's two companies defaulted on loans totalling $3,261,711.52.NeitherVinni, nor his companieshave filed a statement of defence. Vinni filed for personal bankruptcy on Dec. 31, 2016 registering $6,836,226.00 in liabilities and $1,770,157.09 in assets.

Vinniis one of threecouncillorsleading the municipality's critical wildfire recovery committee. He helps make policy and decide how millions of taxpayer dollars are spent on rebuilding Fort McMurray. The fire destroyed about 2,400 homes and is considered Canada's costliest insured disaster.

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Vinnihasn't responded to multiple attempts by CBC Newsto contact him by telephone,emailand in-person at his officeoverthe past three weeks.

Vinnifirst moved to FortMcMurrayin 2001, the same year he was called to the Alberta bar. He opened his law office a year later.

In the public's interest to know

University of Alberta political scientist JimLightbodyis raising concerns about Vinni's financial issues. Acouncillor'spersonal or corporate finances,Lightbodysaid, are open to public scrutiny.

The longtime political commentator said when acouncillor'sfinances endup before the courts, it's no longer a private matter.

"It does speak to a person's ability to manage finances,"Lightbodysaid. "The way someone runs their business is the way you would like to see someone run the business of city hall."

Voters, he said, often rely on how a person conducts his or herpersonal affairs to determine how they perform because there are no political parties at the local government level and candidates platforms are often short on detailed policy.

"People do make judgements on that,"Lightbodysaid.

But Vinni's fellow politicians aren't concerned.

CBC News contactedWood Buffalo's mayor and councillorsfor comment. All, except one councillor who didn't return calls, declined a formalinterview.

The mayor and other councillorscalled ita personal matter that had nothing to do with the business of running the municipality.

Vinni'sfinancial issueswillnot disqualify him as a councillor or from running in the next municipal election in October, according to Jim Lighbody.

Follow David Thurton, CBC'sFort McMurraycorrespondent, onFacebook,Twitteror contact him viaemail.