BCLC CEO was in conflict, says report

NEWS — Former B.C. Lottery Corporation CEO Michael Graydon was in a conflict of interest during the two months before he left but there’s no evidence anyone benefited from the conflict, says a review released Thursday by Finance Minister Mike de Jong.

De Jong promised immediate changes to prevent similar situations in the future.

Graydon submitted his resignation in January and was later announced as the president of PV Hospitality, a gaming resort developer in Vancouver. BCLC paid him $86,000 in performance bonus, vacation pay and two months’ severance.

He also was allowed to keep his iPad, iPhone and laptop.

The review found that while Graydon had access to confidential information in his role as CEO, there was no evidence that information was removed or used inappropriately to benefit his new employer.

The report recommends government develop new post-employment restriction guidelines for appropriate staff of ministries, Crown corporations and agencies.

De Jong said BCLC will implement restrictions to bar employment with private sector employers in the B.C. gaming industry for a minimum of one year.

BCLC said it accepts all review recommendations and will fully implement them, including:

• BCLC should ensure it has a robust, consistently applied exit process that includes timely removal of access to corporate systems and information.

• BCLC should develop policy and procedures regarding mobile devices when an employee leaves the organization.

In addition, said de Jong, government has provided direction to public-sector entities on standards of conduct, including post-employment restrictions, requiring them to develop comprehensive codes of conduct that will apply throughout their organization.

“Consistent with employment law on constructive dismissal, the changes will be effective immediately for executives taking new positions and in 18 months for executives that maintain their current position,” a statement from the Finance Ministry said.

“Standardization of code of conduct across the public sector is an action item in the implementation of new taxpayer accountability principles, announced June 11 by government.”

BCLC board chair Bud Smith issued a statement Thursday that the board “made decisions on the handling of Mr. Graydon’s resignation based on the information he provided to us at the time.” He said the corporation will develop an action plan to address all of the recommendations. “I believe that the plan will help strengthen BCLC’s policies and processes into the future.”

A statement from BCLC added that the audit brought forward information that “was not previously known or disclosed to BCLC.” It said the corporation accepts all of the recommendations in the report.

Graydon was quoted in the Globe and Mail as stating he understands that a perception of potential conflict was created “and for this I apologize.”

The full report on the resignation of BCLC’s CEO is available at: http://ow.ly/z0t7h.