School board conflict-of-interest case sent to court

A Nova Scotia Supreme Court justice will decide if a member of the Halifax Regional School Board found to have been in a conflict of interest must give up her seat.

Thecase involving Bernadette Reid will also be handed over to police to determine if an investigation is warranted, justice officialssaid Wednesday.

Theannouncement was made one day after an inquiryrappedReid for business transactions she made withboard schools.

In a report released Tuesday, inquiry commissioner LeRoy Lenethen said Reid's actions "fall within the meaning of malfeasance and misconduct" under the Municipal Conflict of Interest Act.

The inquiry, held over three days in June and July, was convened at the request of the school board.

Reid, member for Preston-Lawrencetown-Chezzetcook, sold African cultural products from her private business to two Halifax-area schools, including one run at the time by her husband, the inquiry was told.

Testimony hears of transactions

In her testimony, Reid acknowledged the three business transactions she made with Carl Reid, then principal of Gaetz Brook Junior High School, and one with St. Patrick's-Alexandra school.

She said she was not aware the board had a purchasing policy at the time she made the sales.

But in his ruling, Lenethen said Reid sat through a presentation of the Conflict of Interest Act in October 2004, before the last two transactions were made.

He also said Reid gave her husband a 19.76 per cent discount in order to keep the total sales off the radar of the board's purchasing policy.

And at two separate board meetings, Reid "made a deliberate decision not to declare a conflict of interest," Lenethen wrote in his decision.

But Lenethen said there was no proof that Reid knew of any alleged breach of policy by her husband.

Carl Reid resigned as principal of Gaetz Brook in June 2005. He's scheduled to appear in court on Oct. 27 on charges of theft and fraud in instances alleged to have happened between June 2002 and January 2005.

Bernadette Reid did not return calls from CBC News on Tuesday.

Only a Supreme Court justice has the power to declare Reid's seat vacant.

"If a judge does find that someone has contravened the act, they basically remove that person from the board,"Cathy MacIsaac,spokeswoman for the Justice Department, said Tuesday.

"They can also impose fines and prohibit that person from running for a board position again."

The school board will review the inquiry report at a special meeting Wednesday night.

School board chair Gary O'Hara said the report is troubling.

"The report clearly states that Ms. Reid did certainly breach many of the duties that were required of her as a public official," O'Hara said.