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Kwantlen Polytechnic University failed to meet disclosure requirements: review

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SURREY — Kwantlen Polytechnic University failed to meet the province's disclosure statements when it came to reporting the compensation for a past vice president and current president Alan Davis.

The finding was reached in a review released Tuesday by the province's Ministry of Finance. The review was ordered after allegations were made earlier this year that current Advanced Education Minister and Surrey-Tynehead MLA Amrik Virk was involved in a plan to pay $100,000 to Davis out of a foundation fund that normally goes towards bursaries and grants during his time on KPU's Board of Governors.

According to the review, the $100,000 in question would have come from the Kwantlen Foundation and was being considered as "supplementary compensation" for Davis during the time when KPU was seeking to bring him on as president.

In the report, Virk was noted to have been involved in the discussions but later withdrew the motion after being told that the province would react "extremely negative" to the idea.

"Our advice at present is to hold off as the risk factors are very high. Stay tuned and hold off on the motion and conference call please," he said in an email dated Nov. 7, 2011.

In April, Virk told the Now that "no bursary money went to any president" and any suggestion that it had is "absolutely, categorically incorrect."

Also contained in the review were findings that both Davis and KPU's former vice president and provost Anne Lavack received $50,000 each for pre-employment work that was deemed by the auditor as "vague on deliverables." In Lavack's case, the numbers, when tallied, put her over KPU's allowed compensation. Moving allowances were also provided for both.

Lavack was only at Kwantlen for one year, from 2011 to 2012. Davis joined KPU in 2012 and remains as its president.

The review concluded by making several recommendations to changing the public compensation reporting guidelines. Those recommendations include making moving allowances part of employment contracts and ensuring full disclosure of any and all pre- or post-employment payments.

As well, "Public Sector Employer's Council compensation reporting guidelines should be rewritten to emphasize that transparency is the overarching intent of the guidelines."

According to a release sent out by Finance Minister Mike De Jong, those recommendations have been adopted and will be implemented for the 2013/2014 annual executive compensation disclosure.

Shane King, current chair of KPU's Board of Governors said the board accepts the review's findings and that it is the board's intention to rectify the university's processes and procedures. To do this, KPU will be bringing on business and accountant consultants MNP LLP as an independent internal auditor to improve the university's practice in whatever way they can.

King also added, "I want to ensure this matter does not reflect negatively on Dr. Davis, who simply accepted the university's employment offer and pre-employment contract.  We are eager to move forward under his leadership."

When reached for comment, Virk said in a statement, "As a volunteer member of the board in 2011, I take responsibility for the issues surrounding the president's compensation. The legislation and its intent must be followed. I appreciate the importance and value of transparency and disclosure. Along with all members of this government, I will work to ensure the post-secondary sector embraces and implements both the review recommendations and the taxpayer accountability principles Premier Clark announced on June 11."

However, B.C. NDP Advanced Education Critic David Eby said Virk needs to do more and wondered why he's still in his role as minister.

"The B.C. Liberal Minister of Advanced Education needs to lead by example. Instead it was found that he was part of a scheme to deliberately circumvent the rules to give sweetheart deals to executives at Kwantlen University and then he lied to the public and the legislature about his knowledge of it," said Eby.

"It is an indictment of the premier's judgment that she feels he remains an appropriate person to be in her Cabinet, responsible for a billion-dollar portfolio. We are encouraging the auditor general to pick up where this internal government investigation left off, as we understand the investigator had identified additional problems not in the scope of his terms of reference."

cpoon@thenownewspaper.com