Embattled Kwantlen Polytechnic University president Alan Davis says he was "unaware" that pre-employment consulting contracts given to him and another executive "might be non-compliant in some way with BC public sector regulations."
Last week, Davis released a statement indicating he would conduct his own review of the issue, using "independent, external resources as required."
Davis said this is one of his latest steps to ensure a "strong culture of transparency and accountability at KPU."
His statement followed a damning report from the Ministry of Finance, one which Finance Minister Mike de Jong called "troubling."
The report found the university did not properly disclose the $50,000 preemployment contracts given to Davis and then vice-president Dr. Anne Lavack. The money was only indirectly disclosed through other financial documents.
The maximum amount for Davis' position as set by the PSEC is $225,000. Davis' compensation is $224,995.37. In his first year of employment, which commenced in September 2012 his salary was prorated for eight months of work, thus earning him about $140,000. The report noted Davis worked June through August in 2012 for his $50,000 pre-employment consulting. Combined the roughly $190,000 he earned put him under what is allowed by the PSEC for one year.
The report found the university was looking at other ways to further compensate Davis, who started his job at KPU in 2012.
KPU board members, which then included now Minister of Advanced Education Amrik Virk, a former Mountie, "investigated ways to supplement the President's compensation. This included the possibilities of supplementary compensation of $100,000 through KPU's Foundation (a charity) and leasing a vehicle for Dr.Davis, although neither was pursued" stated the report.
The report concluded Virk was aware of the details of at least one of the preemployment compensation contracts. A statement from his office, given to The Province, noted he only dealt with the president's compensation.
Citing a conflict of interest, NDP Advanced Education critic David Eby has called on the Auditor General's office to investigate the matter and for Premier Christy Clark to demote Virk from his position. Clark, however, has stood behind Virk, according to reports.
The compensation scandal came out of a wrongful dismissal claim filed in March by a former KPU employee alleging "irregular and wasteful spending" and deliberate attempts to reclassify salary increases to avoid detection.
Davis' own probe also comes amid new disclosures, not mentioned in the report, that show two other senior staffers were offered $20,000 pre-employment consulting contracts, which were handled in similar manner to the ones detailed in the government report; Dr. Elizabeth Worobec and George Verghese, had been granted the contracts in 2011 and 2012, respectively.
The report makes recommendations to strengthen B.C.'s disclosure guidelines improve transparency such as disclosing pre-employment or post-employment contracts through the appropriate channels.
Davis said his own review will be announced to the public "later this summer."
-With files from The Province
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