Port Moody councillor, city, threatened with legal action over alleged development conflict of interest

A Port Moody councillor and the city itself have been threatened with legal action by a group of residents who allege the councillor’s employment with a development lobbyist has resulted in a conflict of interest during certain land use decisions.

The warning came via a Jan. 26 legal letter, which demanded Coun. Diana Dilworth recuse herself from deliberations and votes involving developers connected to Homebuilders Association Vancouver (HAVAN), where she works as director of government relations.

Jeff Poste, a spokesperson for the group alleging conflict of interest, said Dilworth has continued to vote on HAVAN-related projects, and they are “preparing to pursue legal options.”

“We’re looking at proceeding as soon as possible with this, the reason being that there’s going to be an election this fall,” Poste said. “We don’t want paid lobbyists running for council positions, it’s like putting a fox in the hen house.”

Claims that Dilworth, a six-term councillor, has industry conflicts have been voiced repeatedly by certain residents during public input periods and public hearings – including former councillor and mayoral candidate Steve Milani.

These claims, however, have never amounted to a formal legal challenge before.

Poste noted the group’s members are also behind a public petition calling on city council and the BC Ombudsperson to launch an investigation into Dilworth’s alleged conflicts. The petition has gathered nearly 750 signatures.

The Dispatch reached out to Dilworth for comment on March 9, but did not receive a response by deadline.

Under B.C.’s Community Charter, municipal councillors must not participate in discussions or votes if they have a direct or indirect pecuniary interest in the matter.

The letter, sent through a Victoria-based lawyer retained by the group, argues Dilworth’s employment with HAVAN creates an indirect financial interest that prevents her from approaching development applications with impartiality.

It specifically cites development applications brought forward by Anthem Properties Group and Beedie Living, both members of HAVAN, which recently came before council.

“In such circumstances, you have a clear pecuniary conflict of interest and divided loyalties,” the letter stated. “Your employment relationship with HAVAN economically binds you to the interests of HAVAN and its members, in a manner which cannot be temporarily set aside or suspended when you enter the Port Moody council chambers.”

The letter warned that if voluntary compliance did not occur, the group would pursue a BC Supreme Court application seeking to disqualify Dilworth from holding office under the conflict-of-interest provisions in the Community Charter, and pursue remedies for any bylaws or approvals “tainted” by the alleged conflict.

Poste said that under B.C.’s Lobbyists Transparency Act, MLAs are barred from working for lobbyist organizations while serving in office, as well as for two years after leaving office. He said the same rules should apply to locally elected officials.

In a media release issued March 9, the group said Dilworth’s dual roles raise questions about public confidence in land-use decisions.

“This comes down to public trust,” the release stated. “Residents should be confident that land-use decisions are being made solely in the public interest.”

City manager Anna Mathewson said provincial legislation places the responsibility for identifying and declaring conflicts squarely on elected officials themselves.

She added that the city’s code of conduct also outlines expectations, noting that councillors, “have a statutory duty to comply with the conflict-of-interest provisions set out in the Community Charter.”

Mathewson said the city has been attentive to resident complaints related to councillors’ outside roles, but noted the legislation does not require municipalities to investigate such matters, and the city’s efforts must balance obligations under the charter, confidentiality provisions, and code of conduct.

She said the city cannot confirm whether it has sought legal advice about the allegations, noting that such communications are protected by solicitor-client privilege.

“The Community Charter and the Local Government Act do not require that the city seek or publish legal advice related to conflict of interest inquiries.”

According to the group’s media release, the City of Port Moody’s legal counsel responded to the letter on Jan. 27, stating council is not required to initiate proceedings to remove a councillor for a potential conflict.

Poste described the city’s response as “brushing us off,” adding that now any challenge must be brought through the courts.

He said it highlights a broader governance issue in the province. Unlike other provinces, B.C. does not have an independent municipal integrity commissioner or oversight body to proactively enforce conflict-of-interest rules.

Poste said that means enforcement falls to private citizens to file legal challenges.

“It’s not just Port Moody in this situation,” he said. “Citizens should not be forced to put up with, and fight with elected officials to make them act honestly and ethically.”

The group also filed a complaint with the BC Ombudsperson on Feb. 21, 2025, which has resulted in ongoing correspondence to determine whether it met the threshold for an investigation.

On Jan. 16, 2026, they received an update that the file is “pending assignment to an investigator,” according to Poste.