Premier: IWK board took proper steps in expense scandal that saw executives charged

HALIFAX – Nova Scotia Premier Stephen McNeil believes the Board of Directors at the IWK have taken proper steps that's seen charges laid against the children's hospital's former Chief Executive Officer and Chief Financial Officer.

Former IWK CEO Tracy Kitch has been been charged with fraud over $5,000 and breach of trust in connection to the alleged mismanagement of expenses at the hospital, while former CFO Stephen D'Arcy faces charges of breach of trust, unauthorized use of computer and mischief to data.

When asked about the charges Tuesday, Premier McNeil said it was the hospital board's responsibility to deal with costs and financial controls and that “the board has very clearly taken the responsibility of doing that.”

“I would say to you that every board has a fiduciary responsibility, whether it's the IWK, or the new health authority or the boards that represent private industry in the province, to continue to lay out those responsibilities,” McNeil said.

“If people choose not to follow those, we then go through the process we're in right now.” 

McNeil adds the board followed all proper steps in alerting police about the scandal but admits there had been challenges in how the board operated prior to the investigation.

Kitch resigned in August of last year after an independent audit said she owed tens of thousands of dollars of potentially personal expenses that had been charged to her corporate credit card, while D'Arcy stepped down the following month. 

In a statement Tuesday, police said their investigation was launched on Sept. 20, 2017, five days before D'Arcy resigned and a month after Kitch left. 

Both are scheduled to appear in court on Dec. 20 in Halifax.

-With files from Chris Halef