Cape Breton Regional Municipality has Richmond-like mileage loophole

Richmond County is not the only municipality using travel expense practices that have come under fire by auditors.

A policy that lets some peopleget paid twice for local travel is accepted in Cape Breton Regional Municipality.

Recent investigations by Nova Scotia's Office of the Ombudsman and a forensic auditor revealed municipal officials in Richmond claimed expenseswithout receipts andhad expenses for alcohol and strip clubs reimbursed.

The scandal that ensued forced the resignation of Richmond's top administrator and further investigations by the RCMP and the elections authority.

Ombudsman and Grant Thornton auditors both noted problemswhen people claimmileage while also receiving allowances for local travel.

In Richmond County, the CAO fell into that category. Grant Thornton estimated the additional costto the municipality, over the years reviewed, wasabout $31,000.

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In CBRM,councillors can claim $140 a week for travel within the county. Councillors also are allowed to claim mileage starting in Sydney for travel to destinations outside the county.

Auditors said that means the local portion of trips is getting paid twice. If someone receives the local travel allowance, they should only claim mileage for the travel outside of the county, auditors said.

'Don't believe it's right'

Newly elected CBRMCoun. Steve Gillespie said getting rid of the travel allowance would eliminate the problem.

"Idon't believe it's right," he said. "[Anyone]allowed to rack up expensesshould have receipts for all of them, and I think they also should be posted on aquarterly basis online."

Coun.George MacDonald said every aspect of the travel allowance will be reviewed by the new council.

Councillorsin theCBRMare paid 42 cents per kilometrefor travel outside the county.

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