Laval councillors cleared of wrongdoing in public funds probe, city to revise expense rules

Paolo Galati resigned from Action Laval following allegations of misuse of public funds.

After finalising an investigation into the alleged improper use of public funds by elected officials in the City of Laval, Quebec's municipal oversight commission (CMQ) says the vast majority of personal expenses claimed comply with the law and regulations in place.

The CMQ's findings, presented in a report released on Monday, concluded that there was no wrongdoing. However, the report highlights that the city's current regulations provide council members "too much discretion in assessing whether expenses are admissible or not."

The report includes recommendations for revising the regulations concerning reimbursement from the research and support expenses fund, suggesting more precise guidelines for categories of admissible expenses, particularly for computer supplies and meeting expenses.

The City of Laval has an annual budget of approximately $1,100,000 for research and support costs for council members.

Last fall, two Laval city councillors, Paolo Galati of the opposition party Action Laval and Alexandre Warnet from Mayor Stéphane Boyer's party, faced allegations of misuse of public funds.

"More specifically, there is media coverage of a city council member who allegedly purchased $16,000 worth of Apple equipment over six years and who requested reimbursement for food from his research and support budget," the report states.

After the investigation was launched, Galati, the representative for Saint-Vincent-de-Paul, maintained that all expenses were work-related but resigned from the caucus pending the outcome of the investigation.

"There is also mention of another council member who allegedly received $5,800 in reimbursement from the city for life coach training in 2023," the report notes, "even though he is also a professional and personal development coach within a career and business coaching consulting firm of which he is also vice-president and co-owner."

In September, Warnet said on social media that he would reimburse the city and indicated that the training was "directly linked" to his duties as an elected official.

"Only the training modules related to the skills useful to elected officials were the subject of a request for partial reimbursement, as required by Quebec law and the relevant regulations," he said on Facebook.

According to the CMQ, Galati also reimbursed the city.

"The investigation identified a certain number of expenses that we consider inadmissible, but which cannot be refused by the administration since it is an almost bound power when the criteria provided for in the by-law are met, except for expenses deemed to be partisan in nature," the report states.

In a statement, the City of Laval said it welcomed the recommendations.

"A working team made up of representatives from the Finance and Legal Affairs departments will quickly look into implementing the recommendations," said city spokesperson Philippe Déry.

"Adjustments will be made to the municipal by-law to minimise the risks of interpretation of its scope."

According to Déry, the amendment will clarify the rates and eligibility of expenses for research and support, particularly about the costs of meetings with citizens and the acquisition of computer equipment.

"The commission also reiterates the importance of compliance with the Code of Ethics and Professional Conduct for elected officials, which the city will revise in light of the recommendations."

The City of Laval must provide an update on the corrective measures to the CMQ by April 1.