By Mia Rabson

OPPOSITION critics yesterday called for the Public Schools Finance Board members to resign or be fired after it was found they failed to properly oversee a school division's plans to sell off excess land.

Both Tory education critic Myrna Driedger and Liberal Leader Jon Gerrard independently called for the board members to be called on the carpet for not doing their jobs.

"That whole group should be disciplined or replaced," said Driedger.

Their comments came after Education Minister Peter Bjornson released a departmental review on how Seven Oaks School Division was able to spend more than $2 million to develop more than 70 residential lots in north Winnipeg between 2002 and 2005, against the provisions of the Public Schools Act.

The report found the school division failed to acquire proper legal advice prior to developing the land, but placed most of the blame for the scheme at the feet of the Public Schools Finance Board, which approved the division's plans.

The report called the board's actions in the process "highly unusual."

Bjornson said he will be taking immediate steps to improve communication between the school divisions, the board and his office.

"This was not handled appropriately," he said.

Bjornson acknowledged the entire problem would have been avoided if the Public Schools Finance Board had done its job. But he said it's too soon to say whether any disciplinary action will be taken.

"I do have concerns about this issue, there is no doubt about it," he said. "I am going to be talking to my deputy about those concerns."

There are five members of the Public Schools Finance Board, all appointed by the provincial government.

The report found the board approved the first sale of lots despite clear indications in the lot sale agreements that the division was developing the residential lots prior to sale.

The report further found the agreements were not listed as a proper agenda item at the finance board meeting but were "walked in at the very end" of the meeting, that the board members and executive director do not recall reading the agreements before approving them, nor did they conduct any analysis of them. The board also failed to hold a meeting with the school division prior to approving the sale as required by finance board policy.

The division asked for approval on May 3, 2004 and was granted it the next day.

Driedger, who was first to uncover what the school division was up to, said yesterday the report was "sloppy" and a "whitewash" and appears to absolve Bjornson of any responsibility.

When Driedger first raised the issue a month ago, Bjornson claimed to have no knowledge of the situation, but was forced the next day to admit a private citizen had written to him in May 2004 asking if school divisions were allowed to be property developers.

Bjornson said he never acted then because he asked the finance board what was going on and was never told the citizen's allegations were correct.

Driedger said there needs to be further investigation, including proof of whether taxpayers in Seven Oaks actually made any money on the deal, as the division claims.

In a written statement yesterday, the school division said it would abide by Bjornson's recommendations in the report, but said it still believes it did nothing wrong because it sought, and received approval for the development.

mia.rabson@freepress.mb.ca