The P.E.I. concert was to have been a tribute to Michael Jackson. (Joel Ryan/Associated Press)

The mayor of Summerside, P.E.I., says the city acted in good faith when it paid $1.3 million for what it claims was a bogus Michael Jackson tribute concert.

Basil Stewart spoke to CBC News Wednesday about the $1.3 million lawsuit the city filed in a San Jose, Calif., courthouse against Katrina Berg Sussmeier and her promotion company, StarLink Productions.

"It's a situation that nobody is happy with, but it happened. Everybody at the time thought it was in good faith — well, most people, I should say," Stewart said. "It happened and it's being dealt with. Council made a decision to follow the route it's going, so we'll see how it unfolds at the end of the day."

Stewart refused to go into detail about why council decided to send a second cheque to the promoter even when the concert was in question. He said the matter is before the courts.

Economic opportunity

Former city councillor Norma McColeman said there were a number of debriefs and meetings on the proposal.

She said council saw it as an economic opportunity. She noted one of the companies involved with the proposal had a proven track record with a previous concert in Summerside.

The city said Sussmeier promised it could host the first concert of an official Michael Jackson Tribute Show, featuring stars such as Beyonce, Justin Timberlake, Rihanna and Usher.

Summerside would have kicked off the world tour July 24, 2010.

The city alleges the whole thing was a fraud.

The city's statement of claim says it wired two separate payments of $650,000 to the promoter: the first in July 2009, the month after Jackson died; and the other in March 2010.

The second payment was made despite growing doubts.

None of the allegations have been proven in court. Messages left for the promoter since Monday have not been returned.