Alberta's Securities Commission (ASC) chairman Stephen Sibold says "depraved individuals'' were behind allegations that he interfered with regulatory affairs and presided over a culture of lewd behaviour and favouritism.
Sibold told a hastily convened news conference last week that the allegations were "totally without foundation'' and that he planned to sue the National Post for reporting them.
In a similarly worded memo to staff, Sibold challenged anyone to come forward with evidence that could support the allegations.
"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,'' Sibold said in a prepared statement.
In a separate media release the ASC's director of enforcement said the department is neither "dysfunctional" nor "in disarray.”
"Since assuming my position ... in October 2003, there has been no interference with the appropriate exercise of the department's responsibilities to enforce Alberta securities laws," said John Petch.
"Enforcement activities are continuing without disruption."
In Edmonton, Finance Minister Shirley McClellan confirmed she had asked for an investigation into the conduct of Sibold and commission executive director David Linder in early January.
"I had, through my deputy, the concern raised on some activities at the commission - some involving human resources, and a suggestion of some concern on regulatory,'' said McClellan, who is also Alberta's deputy premier.
The National Post reported last week that a confidential report completed for the commission's board alleges interference with enforcement cases, favouritism and condoning of improper conduct.
The Post reported that a lawyer for Sibold has sent a notice with his intention to sue the newspaper over the article.
The commission is one of the largest securities regulators in Canada and is responsible for governing all publicly traded companies registered in Alberta.
A lawyer representing the commission's part-time commissioners confirmed that Calgary corporate lawyer Perry Mack was hired as an "independent investigator'' and that he wrote two reports of his findings. Neither has been released to McClellan, who has responsibility for the commission.
The commissioners are said to be reviewing the two reports and "will be making their report to the minister shortly.'' A source told The Canadian Press that allegations of improper behaviour at the securities commission were brought to Alberta Ethics Commissioner Bob Clark nearly a year ago, but Clark did not have enough evidence to act on the complaints.
Last October, the government opted not to renew Sibold's contract for another five-year term. But Sibold was recently given a six-week extension, entitling him to stay on until early May.
Linder also said that he read the allegations against him with "utter shock and outrage.'' "These allegations are viciously prejudicial, untrue and calculated irreparably to harm my good character and reputation,'' he said in a release.
"I intend to take all appropriate steps to respond to and seek redress as a result of the unfair and malicious publication of these unfounded attacks on my integrity.'' McClellan said she won't ask Sibold and Linder to step down while the investigation continues, noting the allegations are not proven.
