Sibold rejects

(March 24, 2005) The outgoing chair of the Alberta Securities Commission says he is suing the National Post. Stephen Sibold says articles on an internal review at the regulator contain “scurrilous and groundless” allegations against him.

The stories — written by Post chief business correspondent Theresa Tedesco (who Sibold also plans to sue) — state that the ASC’s board of part-time commissioners is currently studying a report on questionable management practices at the regulator. The report singles out Sibold and ASC executive director David Linder, the Post claims, and accuses them of fostering a “dysfunctional and toxic” work environment.

The report also alleges that senior ASC executives interfered in cases, engaged in favouritism and condoned lewd conduct among staff, Tedesco wrote.

In a strongly-worded statement released late Wednesday, Sibold, whose five-year term as ASC chair ends in May, said he was outraged by the accusations.

“They have no basis in fact and I categorically reject and deny each and every one of them,” Sibold said. “I am deeply troubled and disappointed that these malicious and vicious allegations have been made anonymously by persons who I can only conclude are bent on harming me and others to advance their own interests.”

“I challenge these cowardly and depraved individuals who are hiding behind anonymity to come forward, identify themselves and present what they take to be evidence supporting their baseless and false allegations,” he stated.

The allegations made against him have no merit, added Linder, who has held the executive director position since 1997. “I intend to take all necessary and appropriate steps to protect my good name and reputation,” he said in a statement. “The fact is that the management and business of the Alberta Securities Commission has been conducted during my tenure as executive director to the very highest standards of propriety, professionalism, fairness, respect and integrity.”

Linder said he received an e-mail from the Post on Monday containing the allegations. “It was my understanding that the commission’s counsel, Alan Hunter, responded by advising the reporter that many of the allegations she had raised were inaccurate.”

In a statement, Hunter confirmed that Calgary lawyer Perry Mack was hired by the ASC’s commissioners to conduct an independent investigation to “conduct preliminary interviews with each complainant.” He did not elaborate on the nature of those complaints but added that Tedesco “accurately attributed to counsel to the commissioners that ‘the matters are internal to the commission and are highly confidential’ and ‘many of your allegations are not accurate.'”

Mack has provided two reports, Hunter said, which will be reviewed by the commissioners, who will then report to the province’s finance minister.

Filed by Doug Watt, Advisor.ca, doug.watt@advisor.rogers.com