City of Pembroke paid mayor's law firm $200K in past year

Invoices obtained by CBC News reveal the City of Pembroke has been paying tens of thousands of taxpayers' dollars every few months to the law firm where its mayor, Ron Gervais, works.

The total payments to Sheppard & Gervais from January 2022 to March 2023topsat $198,526.

CBC published several storiesthis yearabout the mayorties to the city's solicitor Robert Sheppard and that law firm they both work at.

Some residentsquestioned whether this was a conflict of interestand, in one case,suggested the mayor worked as a lawyer on the taxpayers' dimein a civil case against the city, while serving as an elected official last year.

The city's contract with its solicitor is 21 years old and some councillorsraised concerns about the lack of review of this long-standing relationship.

The city has previously told CBC its contract is with "Robert B. Sheppard (the person) andnot Sheppard &Gervais (the firm)."

However, the invoices obtained throughfreedom of information laws are billed by and paid to the vendor "Sheppard & Gervais."

Here's the breakdown of those payments:

• January to March 2022: $51,911.83.
• April to June 2022: $63,452.02.
• July to September 2022: $23,938.08.
• October to December 2022: $27,412.24.
• January to March 2023: $31,811.83.

Neither Gervaisnor Sheppard responded to CBC's requests for an interviewfor this story.

The city's chief administrative officer (CAO) David Unrau previously told CBC News Gervais was "not a partner in the firm, but an employee."

According to internal emails, Gervais was concerned about how the word "firm" would be interpreted after CBC first began inquiring about his relationship to the city solicitor this March.

"The only change I see is the words law firm should be law office as it is not a firm implying a partnership," Gervais wrote to Unrau in an email on March 16.

Gervais was giving the CAO feedback on a statement prepared for council aboutthe city's relationship with Sheppard & Gervais.

If we want to have a transparent democracy where politicians do not abuse their power make noise about it.- Noah Arshinoff, Transparency International Canada

Cached versions of Sheppard & Gervais's website reveal the business referred to itself as a "law firm"across its website in the weeks beforeCBC's first story was published.

Today, all former references to "firm" have been changed to "office" except for email addresses posted on the website which still referto the business as a law firm.

"Theprocurement bylaw does not state that we need to re-evaluate the services. We are happywith the service always quick and professional," Unrau wroteto Gervais in an email on March 23. That bylaw has since been amendedby council.

Unrauacknowledged CBC's request but didn't agree to an interview, nor did he provide comment.

Emailsalso show some members of council and residents had askedquestions about the relationship since last year's election.

"Numerous people have asked me since about mid-December about the Sheppard & Gervais appointment,"wrote Coun. Ian Kuehl to Unrau in a March email, asking for clarity on the city's procurement policies.

He referred to the mayor's bidto purchase city land for $1,000.

"Much like the land deal, however, I don't want this looking like another inside council job."

'This should not happen', says budget policy expert

Genevive Telliersays she sympathizes with elected officials in municipalities with smaller budgets, where they have to work while simultaneously serving the public because they're not paid full annual salaries.

But that doesn't outweigh the importance of fiscal transparency and "making sure that citizens are convinced that the [public's] money is well-managed," saidTellier, a politics professor at the University of Ottawa who looks at budgetary policies in government.

"Anything that could cast doubt on that should be avoided."

Tellier also said it "raises flags" when a mayor still works at a law firm that does business with the municipality.

"This should not happen."

WATCH | Policy prof says mayor should set a better example:

This city pays a law firm with ties to its mayor. Thats a red flag says political expert

10 months ago

Duration 1:25

Documents obtained by CBC News reveal the City of Pembroke has been paying tens of thousands of dollars every few months to Sheppard & Gervais, the law firm where Mayor Ron Gervais works. Genevive Tellier, a politics professor at the University of Ottawa, says that "raises flags" and should be avoided.

The City of Pembroke has a budget of $78.8 million in 2023, but neither last year's financial statementnor this year'sbudget posted online explicitly disclose how much city money goes to legal services.

Noah Arshinoff, interim executive director of non-profit Transparency International Canada, saysmunicipal procurement in Ontario shouldn't be overlooked.

"When you include all the Pembrokes that exist in Ontario, those are very big budgets," he explained. "They are spending a lot of taxpayer money on a lot of different types of projects. That money needs oversight."

Arshinoff, who teaches anti-corruption law at the University of Ottawa, said it's ultimately up to citizens to pressure politicians.

"Ifwe want to have a transparent democracy where politicians do not abuse their power, and therefore are not seen as being corrupted, we have to demand that from them and the only way to do that really is to make noise about it," he said.

Both Tellier and Arshinoff said a 21-year-old city contract should be re-evaluated.

"That's not a best practice," Arshinoff said.