It is not only at the provincial level that the supervision of corporate credit cards is deficient. Our Bureau of Investigation has identified several cases at the municipal level, some of which have already made the headlines, where elected officials and civil servants have increased questionable expenses with their company cards.
In January 2024, a CMQ investigation revealed that Hampstead general manager Richard Sun, who has since retired, regularly used two city credit cards to make restaurant purchases, at the SAQ, at the Apple Store and Costco. He had also charged for his gym membership. Between 2018 and 2023, Mr. Sun paid for conventions in Disney, Florida, Barcelona, Chicago and Las Vegas for himself and colleagues. The amount of travel expenses varied from $30,000 to $60,000 per year.
Richard Sun, former general manager of the Town of Hampstead
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The CMQ investigation highlights that the controller who received the card statements did not ensure that the DG’s credit card expenses were for municipal purposes. The card and invoice statements were not given to the municipal council. Elected officials were content to approve expenses based on the monthly balance of card statements, without any breakdown.
The investigation report recommended better supervision of the use of credit cards. Mayor Jérémy Lévi, who had defended his CEO’s expenses, still applied the suggested recommendations.
Management shortcomings and negligence confirmed
The City subsequently commissioned a private firm, Sirco, to carry out its own investigation. The report released a few weeks ago confirmed “major deficiencies in financial management and control that led to abusive credit card spending by Mr. Sun.”
Mr. Sun notably used a Costco Mastercard credit card in his personal name but whose address was that of city hall. This card allowed him to accumulate points and pocket cash back. “Since 2017, Mr. Sun has received $7,468.15 in cash back from Costco. He only repaid an amount of $1,058.62 in 2024 while the investigation was ongoing,” we read in the report.
The investigation found several “questionable purchases” of food at Costco. “Mr. Sun explains that he may have inadvertently confused certain personal purchases with those of the City,” it is written.
He also spent $177,500 paying for gifts and rewards to employees. “Several types of gifts were offered to employees to mark various occasions such as a gift card worth $800 for a wedding gift, televisions, watches for retirement gifts,” we can read. Unused gift cards worth $32,270 were even found in his office after his departure.
Clothing and gasoline
The general manager was also reimbursed for his meals at the restaurant even when he was alone. He also admitted to never having brought a lunch. He also bought Apple products without asking permission from the municipal council. However, a program with a supplier existed in the City, but Mr. Sun did not take it into account. He sometimes bought devices for himself and certain frames. “The average cost of these devices was $1,500. Airpods were regularly added to the bill for around $300,” we can read.
“Mr. Sun had a budget for his clothes and his gas was paid for at all times, whether he was on duty or not,” the investigation also reveals.
Sirco’s investigation does not establish that Mr. Sun defrauded the City. “On the other hand, we can clearly state that Mr. Sun acted negligently in his spending and in non-compliance with control measures,” we read. He ran the town of Hampstead while forgetting that it was taxpayer funds.”
The report concluded that the City would be entitled to request reimbursement of certain expenses. It is also specified that the current DG does not have a City credit card. Attendance at conferences is now limited to two per employee per year and in North America only.
A mayor who loved tools
The former mayor of Lacolle, Roland-Luc Béliveau, was convicted by the Quebec Municipal Commission (CMQ) in 2018 for a series of purchases he made in 2014 and 2015.
-In particular, he acquired a framing nailer, 2,500 strip nails, a vapor barrier, drills and chisels, a tape measure, a compressor and a jigsaw.
Administrative judge Thierry Usclat pointed out that at the same time, the mayor was also the owner of the company Roland-Luc Béliveau Construction et Rénovation.
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The mayor assured that these purchases were intended for the municipality and not for his company, but the explanation did not convince the administrative judge of their merits.
The latter notably wondered why it was the mayor who purchased the materials, rather than municipal employees. The mayor could not provide an explanation on this subject.
“It clearly appears that for some obscure reason, Mr. Béliveau interfered in the responsibilities of municipal executives,” concluded the administrative judge.
Card of the ex-DG
In May 2014, Mr. Béliveau even used the card of Jacques Mireault, the former CEO who had been fired five months earlier, to pay for two pairs of shoes that he said were intended for two employees.
“How can we buy boots for employees without first finding out their size and giving them the opportunity to try them on in store,” the Commission asked. Besides, the two employees have never worn the boots.
“Even if the evidence does not allow the Commission to conclude that these boots were used for personal purposes by Mr. Béliveau, he maintains ambiguity through his behavior and interferes in functions that are not his . He exceeded the limits of his functions by acting in this way,” concluded the Commission.
The mayor also used the city card and the one in the name of the former CEO to pay for a few meals at a restaurant while he was not in the exercise of his duties.
“When he incurs an expense at the restaurant, Mr. Béliveau is certainly not in the exercise of his duties. By treating himself to a meal with public money, he is using the Municipality’s resources for personal purposes,” the Commission also concluded regarding one of his meals, in particular.
