Former Liberal premier Roger Grimes says an investigation is warranted into how money was used in the 2001 St. Barbe byelection. (CBC)

Newfoundland and Labrador's NDP leader and a former Liberal premier said Monday that the province's chief electoral officer should resign if he fails to investigate the 2001 byelection in St. Barbe.

Last week, CBC revealed how former cabinet minister Ed Byrne paid $3,000 in stolen money to pay long-time party organizer Wayne Clarke during the campaign. Clarke's payment came through Byrnes' constituency allowance, not the PC party. Tory Wally Young won the race by 23 votes.

Byrne was sentenced on Friday to two years less a day on fraud-related charges.

Chief electoral officer Paul Reynolds told CBC that in his view the St. Barbe election was conducted properly, and he was not going to be pursuing the issue any further.

NDP Leader Lorraine Michael, however, called the matter a serious breach of the Elections Act, and said Reynolds' refusal to investigate was unacceptable.

Paul Reynolds, Newfoundland and Labrador's chief electoral officer, insists there is no need to review the St. Barbe byelection. (CBC)

"Well then, he has to step down and the premier has to ask for his resignation because he has to investigate a breach of the Elections Act whether it is known or suspected," she said.

Michael said Reynolds' connections, as a former party president and a lifelong Progressive Conservative until the premier appointed him chief electoral officer, added to his lack of action, will only serve to raise suspicions about his motives.

Former Liberal premier Roger Grimes said the matter was too serious to let slide, no matter how much time has passed.

"For the chief electoral officer to be saying, 'I'm not going to do anything with this,' I think it's a total abrogation of his duties," he said.

There is no evidence Young did anything wrong or even knew about the arrangement or that Clarke did anything wrong or knew where the $3,000 came from.