Tara Kearsey
Northern News Services

Yellowknife (Aug 30/00) - Cheryl Best said she believes she was not in conflict of interest when she voted on an issue involving a developer who had lent her money.

The vote occurred in a committee meeting where members recommended city council accept developer Mike Mrdjenovich's proposal for the former Bartam Trailer park site.

"It wasn't an issue," said Best. "It just never occurred to me that having borrowed money off of somebody for a few days was going to make a difference..."

But the city councillor excused herself from further discussion and the final vote Monday night because of what she called a "perceived conflict of interest."

Questioned after the meeting about her connection with Mrdjenovich, who lent her money to buy The Office restaurant, Best said she needed money for a downpayment until the bank financing could be arranged. The Office owners accepted Best's offer July 22 subject to a substantial downpayment.

That's where Mrdjenovich came in.

Best said a local business person introduced her to Mrdjenovich, who agreed to loan her money until the bank provided financing seven days later.

On Aug. 24, the day after Mrdjenovich's proposal for development of the Bartam site came to a vote before the Public Services Committee, Best said she had second thoughts and attempted to contact city administration by e-mail.

That same afternoon, a concerned citizen e-mailed Mayor Dave Lovell, with a copy to Northern News Services, raising the issue of conflict. Mayor Lovell did not see the e-mail until Thursday morning and immediately asked city administrator Max Hall to seek a legal opinion.

By the time Best reached Hall, the legal advice had already been requested.

According to Mayor Lovell, city lawyers decided there was no conflict.

"There was no debt owing to him (Mrdjenovich), there were no favours, nothing," said Best, who said she had not heard her business transactions were public knowledge until Monday's Priorities, Policies and Budget Committee in camera discussion with other councillors on the issue.

However, knowing that any business dealing can be perceived as a conflict of interest, Best decided to remove herself from all discussions on the disposal of Bartam.