Come By Chance rudderless after council implodes over conflict of interest controversy

The Town of Come By Chance has lost its last remaining town councillor following a divisive and tangly dispute that saw four members dismissed earlier this month for alleged conflict of interest, and another turfed last fall over residency requirements.

A message on the town's Facebook page late Tuesday morning confirmed that acting mayor Kathy Paul had quit, and that town staff are working with provincial officials to establish a path forward for a community seized by controversy.

CBC News has been unable to reach Paul, but town manager Colin Holloway confirmed she has resigned.

When asked why, Holloway said it was his sense that Paul was "feeling overwhelmed with the responsibility left to her as one councillor in office," and that she "felt it was too much for one person as a volunteer to handle."

Paul's departure is the latest setback for Come By Chance, a prosperous community of just over 200 citizens in a heavily industrialized area of eastern Newfoundland.

In recent years, there's been a revolving door of municipal staff and elected leaders at the town office, including an ongoing court case involving a former town manager accused of defrauding the town of tens of thousands of dollars.

"I would say the town has some significant challenges before it," said Holloway, adding, "it will be difficult to get anybody to put their name forward with the current state of affairs."

Holloway said one of the options being considered is the appointment of an interim administrator for the town while plans are made to attract council candidates.

He said the day-to-day operations will continue, and he said there's no threat to municipal services.

Kathy Paul's resignation, meanwhile, comes less than two weeks after she delivered a controversial finding in a conflict of interest investigation, one that ended with four members of council, including the former mayor, having their seats vacated, and leaving Paul as the lone elected member of the seven-seat town council. 

The dismissals ignited a storm of controversy in the community, with dozens of citizens attending a public meeting at the local Lions Club on Feb. 10 in which an official from the Department of Municipal and Provincial Affairs gave a presentation on the rules surrounding conflict of interest for municipal leaders.

According to a spotty Facebook Live feed that failed before the meeting ended, the tone was tense as residents tried to get answers about the dismissals.

Kathy Paul's daughter, Jasmine Paul, said the anger at Thursday's meeting helped influence her mother's decision.

In a direct message on Twitter, Jasmine said "what they did to us on Thursday night was enough."