Moore: Lynn was fired with cause
SYDNEY — The fired CEO of Enterprise Cape Breton Corp. will not receive severance, the minister of state responsible for the federal Crown corporation says.
A day after his office indicated it couldn’t say whether John Lynn was entitled to severance because it was a personnel matter, Rob Moore, minister of state for the Atlantic Canada Opportunities Agency, issued a statement saying that Lynn’s appointment was terminated with cause as of Tuesday.
“This decision was taken as a result of findings from an independent investigation undertaken by the board of directors of the corporation that determined that Mr. Lynn’s actions were incompatible with his position as CEO of ECBC,” Moore said in the statement.
“As a standard practice, the government of Canada does not provide severance when an individual’s appointment is terminated with cause.”
The public sector integrity commissioner released a report Tuesday that found that Lynn had seriously breached a code of conduct in a number of executive hirings. The four hires had strong ties to the federal Conservatives or provincial Progressive Conservatives and the positions were filled without competitive processes, giving them the appearance of partisan appointments, Commissioner Mario Dion said in his report.
After the report was released, Moore said he had taken steps to terminate Lynn’s employment.
“Obviously, the public service commissioner found that this was a serious breach of the code of conduct and I believe the minister took the appropriate action here,” Cape Breton-Canso Liberal MP Rodger Cuzner said.
Lynn has been on leave with pay for almost a year as the integrity investigation and a separate federal ethics probe unfolded.
Lynn’s contract with ECBC was due to expire March 31, 2015. His job was slated to be eliminated once the budget implementation bill is passed in the house and ECBC is shuttered, as ACOA takes over direct delivery of its programs in Cape Breton and Mulgrave. Lynn’s annual salary was between $169,900 and $199,900
The four staffers — Ken Langley, Rob MacLean, Allan Murphy and Nancy Baker — were hired in 2009-2010. MacLean and Murphy continue to work for ECBC while Baker works for Justice Minister Peter MacKay.
Lynn was appointed as CEO in 2008, and was a former executive at Sobeys.