Northern News Services

Yellowknife (Mar 18/02) - MLAs failed to expose any favouritism but the thrust of their questioning was clear: they feel the premier's long-time political adviser got a sweetheart deal.

And they would like to know what was in the severance package given former chief of staff Lynda Sorensen.

In a closed meeting March 7, Finance Minister Joe Handley briefed all MLAs on the contents of severance packages offered Sorensen and former principal secretary John Bayly.

Though it was a formality as the $500,000 was already spent, the government had to get the assembly's approval for the spending.

The two most senior advisers to the premier resigned last fall after a conflict of interest inquiry revealed their involvement in the secret recording of a telephone conversation made to trap then conflict of interest commissioner Carol Roberts.

In the legislative assembly March 8 and 11, MLAs grilled Finance Minister Joe Handley about Sorensen's severance package.

Citing privacy laws and a confidentiality clause in both termination agreements, Handley and secretary to cabinet Liz Snider, who was responsible for negotiating the agreements, refused to provide any specific details.

Calls to Snider's office last Thursday were not returned by deadline.

"What they're attempting to do is get me to somehow admit publicly what the amounts were," Handley said. "I can't do that under the Access to Information and Protection of Privacy Act without being sued or the government being sued."

Sorensen would not reveal what she received, but said it was "exactly what was stipulated in my contract." She has been Stephen Kakfwi's closest political adviser for almost two decades.

Last Tuesday the assembly voted 10-1 (cabinet did not vote) to call the federal auditor general in to review the settlements.

The auditor general has sweeping investigative powers and reports directly to the public through the legislative assembly. The investigation will likely take months to complete.

Questioning by MLAs focused on a payment to Sorensen over and above the payout formula in her employment contract. Handley said such a payment is "taken into consideration in these kinds of circumstances" to avoid a wrongful dismissal lawsuit.

Citing a Prince Edward Island Court of Appeal ruling last year, Frame Lake MLA Charles Dent said there was no threat of a lawsuit -- "Why did we not just say, 'Well, if you are going to sue us we will see you in court,' " Dent asked.

Without elaborating, Handley said the circumstances in the P.E.I. case were different. He said in negotiating severance packages, the government aims for the most expedient and cost-effective solution.

Groenewegen also believes the government had no reason to fear a wrongful dismissal suit.

Referring to the telephone conversation with Roberts, the Hay River MLA said, "We called her to record her."

Testifying at the conflict of interest inquiry, Bayly and Sorensen said at the time they agreed to call Roberts they did not know Groenewegen, who was in a fierce political battle with the conflict commissioner, was going to record the conversation.

Bayly dialed Roberts and spoke with her on the speakerphone in the premier's office. He did not tell the commissioner others were listening in. Sorensen said she entered and left the room as the conversation took place. Groenewegen recorded the call with a hand-held mini cassette recorder.

The day after the briefing on the severance packages, Groenewegen publicly denounced Kakfwi, saying she feels he "lacks sound judgment."

The former deputy premier, who Kakfwi once said embodied the courage and conviction he wanted to bring to government, said she had allowed her loyalty to the premier cloud her judgment.

"After receiving a vote of confidence in this House ... unfortunately Mr. Kakfwi has continued to display an attitude of arrogance and disregard for the position of authority that he holds," Groenewegen said.