John Lynn, the fired CEO of Enterprise Cape Breton Corp., will not receive severance from the federal government.
A report tabled Tuesday in the House of Commons concluded he breached the Crown agency’s code of conduct by hiring four people with ties to the Conservative party.
On Wednesday, ECBC minister Rob Moore, confirmed Lynn’s position was terminated.
“Mr. Lynn’s appointment was terminated with cause,” Moore said. “As a standard practice, the government of Canada does not provide severance when an individual’s appointment is terminated with cause.”
In the report, Mario Dion said Lynn hired four people in 2009-10 without showing that there was a formal hiring process or that their appointments were based on merit.
Dion's report says without a comprehensive explanation from Lynn, the commissioner determined there was an element of deliberateness to his actions that could reasonably be expected to create a perception of patronage within the federal public sector.
Lynn was named CEO of ECBC in May 2008, and had previously been a long-serving executive with Sobeys.