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Second children's hospital executive quits in N.S. as investigation unfolds

Last Updated Sep 26, 2017 at 3:40 pm EDT

HALIFAX – Nova Scotia’s health minister says he still has confidence in Atlantic Canada’s largest children’s hospital after a second senior executive resigned in the wake of a scandal over spending by the former CEO.

Randy Delorey confirmed on Tuesday that the chief financial officer of the Izaak Walton Killam Health Centre has resigned as a police investigation and auditor general’s review of the matter continue.

The hospital sent a memo to staff late on Monday saying that Stephen D’Arcy’s resignation was accepted to “ensure confidence around both the Nova Scotia Auditor General’s review and the police investigation.”

Tracy Kitch, former chief executive of the hospital, resigned last month after an independent review said she owed more than $22,000 for “potentially personal” expenses charged to her corporate credit card.

In a statement, auditor general Michael Pickup announced last week that he intends to conduct financial and performance audits of the IWK’s books and practices, saying he was gravely concerned with the poor financial controls.

Delorey told reporters he maintains confidence that the hospital’s interim executive team is operating the facility well, and the board is bringing in improved financial oversight.