Norman Wells suing former SAO, alleging $1.2M used for personal gain

EDITORS NOTE:

A story published on Nov. 24, 2020, identifies the forensic audit referred to in this story as a draft report.

The mayor of Norman Wells says his town is filing a lawsuit against its former senior administrative officerafter a forensic audit, allegingshe"converted" more than $1.2 million of town assets for personal use.

Mayor Frank Pope says the audit was ordered after a former administratornoticed Catherine Mallon's2016 T4 said her salary was double or possiblytriple what it should have been.

The audit looked at payroll and certain town expenditureswith a focus on Mallon's expenditures, according to the deputy minister of the N.W.T. Department of Municipal and Community Affairs, Eleanor Young, who helped facilitate it.

"I can't even get into any particular [purchase] other than there was use of the town credit card outside the country," Pope said. "And I'll leave it at that."

Misplaced money is just one of many concerns raised by former employeesof the town. In October2017, the N.W.T. government dissolved town counciland appointed an administrator to handle the town's businessafter receiving complaints about alleged conflicts of interest, breaches of confidentiality and failure to follow legislation and council procedures.

The audit, which was conducted by EPR Consulting, covered the period from the fall of 2015 to the fall of 2018. Its results were discussedat a public meeting in Norman Wells Wednesday.

• Norman Wells town council dissolved, gov't appoints administrator

'Fraudulent scheme'

Pope says Mallonwas the only one who used the specific credit card that included out-of-country purchaseswithin the period of time the audit covered. The town issuing Mallonfor fraud, along with Nathan Watson, who was mayor at the time.

"We're alleging that Nathan worked and participated in Mallon's fraudulent scheme," Pope said.

"He allowed it to happen and he was the mayor. He was responsible to the electorate of this community and did not fulfil his duties."

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Pope added that no other former or presentcouncil member or town employee is being sued.

Watson was shocked when a CBC reporter told him about the findings of the audit, and said he has not yet been served with the suit.

"That is ludicrous and I'm tempted to say...libelous and shocking and very upsetting," he said.

"I'm going to categorically deny it right now for you. This is the exact opposite of what happened. I did more as mayor in 18 months than I think anyone ever did."

Watson says while he and Mallon worked for the town, they found millions to pave the streets andfix the sewage system.

And he says Mallonwas always looking for ways to cut costs, which included buying office supplies and other necessities for the town in southern Canada or even when she visited family overseas.

Watson says Mallon worked hours of overtime and didn't always get paid on time and that's why the T4 from 2016 would have shown more than her annual salary.

"Shewent above and beyond what she had to do," Watson said.

CBCreached out to Mallonvia email. She did not respondas of publication. Watson said he would also reach out to her.