The British Columbia Lottery Corporation (BCLC) and all other Crown agencies in the Canadian province of BC are reviewing their codes of conduct after former BCLC CEO Michael Graydon stepped down from his post and was named president of PV Hospitality ULC, a company affiliated with Paragon Gaming.
An internal audit was triggered after he took the position with a company planning to build a $535 million casino complex in Vancouver, just a week after leaving his BCLC job.
The report, released by the B.C. Ministry of Finance, concluded that while Graydon did put himself in a conflict of interest, he did not take any action that would’ve benefited his new employer.
For his part, Graydon issued a statement via email in response to the report, “I have carefully read the report from the Ministry and although the result is inconsistent with the legal advice I sought prior to negotiating with my current employer, I accept the findings and support the recommendations in the report.
“While the auditors found no evidence of my current employer receiving preferential treatment, and no evidence of any confidential information disclosed, I understand that a perception of potential conflict was created, and for this I apologize. I wish to assure the public and government that I have neither sought nor received any benefit from the process of changing positions,” he added.
Finance Minister Mike de Jong called for a review of the codes of conduct by all Crown corporations, health authorities and post-secondary education institutions for a consistent standard across the board.
De Jong indicated that the Gaming Policy and Enforcement Branch will look into the situation to determine if the former BCLC CEO will be penalized for his actions.
In a statement, BCLC chair Bud Smith said, “The Corporation accepts the findings of the audit developing an action plan to bolster the policies and procedures related to employee exit, mobile devices, and will include steps to ensure employees have a clear understanding of their obligations.”
