'Fear, favouritism and lies' control Charlottetown city hall, staff allege in letter to council

Four staff members with the City of Charlottetown have sent an anonymous letter to council decrying the city as a toxic workplace, placing responsibility for that squarely with the city's chief administrative officer Peter Kelly, and urging council to launch an investigation into his conduct.

"We have seen too many former staff who spoke out pay a high price," says the letter from staff, signed "Staffers Wanting Change."

"The City of Charlottetown is a workplace that is controlled by fear, favouritism and lies."

A copy of the letter was tabled in the provincial legislature Thursday by Green Party Leader Peter Bevan-Baker.

CBCNews has spoken with all four people behind the letter, and is protecting their identities because they fear being fired for speaking out.They said they believe other staff feel the same way, but in preparing the letter, they did not reach out beyond their group of four, for fear someone would report their efforts and leave them open to being reprimanded.

• CLICK HERE TO READ THE FULL LETTER AS TABLED IN THE LEGISLATURE.

CBCasked Kelly and the city for comment on the allegations made in the staff members' letter.

A spokesperson for the city forwarded the following three-paragraph statement from Kelly on Thursday afternoon.

"These are serious allegations and concerns. City staff expect and deserve a safe work environment. That is an absolute and an unwavering commitment.

"My dedication and responsibilities to staff and Council remains, however the situation continues to be made personal and has become untenable. There is an obvious need for a review of practices, policies and procedures. Ultimately, I want to ensure that the expectations of staff, Council and residents, along with our collective priorities, are met.

"It is of utmost importance that these issues are addressed, and full accountabilities are upheld. I trust that Senior Staff and City Council will work together to help address these concerns and determine a clear path forward."

Kelly, who served as mayor of Halifax Regional Municipality from 2000-2012, has been Charlottetown's chief administrative officer since 2016.

'Grossly toxic work environment'

The letter from the four employees is just the latest twist in an ongoing saga over administrative and financial concerns at city hall that began more than three years ago, when the city's former deputy CAO Scott Messervey told council he believed he was fired by Kelly in retaliation for raising concerns.

Most of those concerns were never reported publicly prior to a CBCreport two weeks ago.

"The only way to survive working here is to stay quiet and do as we are told," the letter from the four employees states. "The city has a grossly toxic work environment since the CAO took over."

In response to a story from CBCpublished Apr. 24,outlining the concerns raised three years ago by Messervey, Kelly provided a statement saying "The administration, along with my personal character, have come into question and these need to be addressed accordingly."

According to documents filed in court, Kelly told Messervey in a termination letter that he was being fired in part over concerns over his interactions with staff and council members, saying some staff felt Messervey was "looking for errors, rather than attempting to work with them to meet city and departmental goals."

Messervey disputed that claim in a letter sent in response.

2nd deputy fired in April

On April 8 of this year, Messervey's replacement Tina Lococo was fired by Kelly after just six months on the job. In an email to council, she said she too had raised concerns about administrative issues at city hall.

"Coincidentally, the CAO terminated my employment before I had the opportunity to discuss these concerns with all of council," she wrote in the email.

The four staff members behind the latest letter told CBC there is no one left at city hall to provide any oversight over the CAO. In addition to the two deputy CAOs who were fired, they point to four senior positions for directors which no longer exist.

"The CAO is still here controlling everything that happens at the city, and we no longer have anyone to try to keep him in check," the letter states.

Specific allegations

Among the specific concerns raised in the letter regarding administration at city hall, the staff allege:

• The city is not following its own human resources policies for hiring, firing and promoting staff.
• Union grievances, complaints and investigations are "skyrocketing," along with accompanying litigation and legal costs.
• Procurement rules are not being followed, citing the specific example of a contract for HR software they say was awarded without going to tender.
• That staff are being directed to withhold important information from council members, including exit survey results from outgoing staff and issues noted during city audits.

CBC has not substantiated any of these concerns.

"We can't understand why the CAO hasn't been suspended while council investigates all the allegations to decide what should be done," the letter states.

On Wednesday, Charlottetown Mayor Philip Brown issued a statement saying the city is "going through a process to determine the best way forward for all affected parties."

There have been calls in the legislature for Communities Minister Jamie Fox to order an investigation, along with questions about how his department responded when presented with Messervey's letter to council in 2019.

2nd letter circulating

A second anonymous letter purporting to be from city staff has also been circulating. That letter places responsibility for strife at city hall with a former senior staff member. CBC News has tried but been unable to reach any staff who claim to have authored that letter.

However, CBC has confirmed a version of that letter, initially sent to council, was forwarded by councillor Mike Duffy to a city resident, apparently in response to a public Facebook post by that resident expressing concerns about the ongoing situation.

"There is no doubt in regard to the letter's authenticity; only individuals on staff and at meetings would be aware of the details presented in the letter," Duffy wrote to the resident of Ward 4. Duffy is the councillor for Ward 3.

"I think after you read this document you may have 'a change of heart' regarding the 'buzz' around the city."

Duffy did not respond to a request from CBC News for comment.

If you have information about this story, or a news tip to share with CBC Prince Edward Island, please email kerry.campbell@cbc.ca or compass@cbc.ca.