The Alberta Finance Minister is probing allegations that senior officials at the Alberta Securities Commission interfered with regulatory affairs.

Shirley McClellan McClellan, who is also Alberta’s deputy premier, asked the ASC’s 12-member board to look into the allegations against outgoing chairman Steve Sibold and executive director David Linder and report back.

It was reported today that a confidential report alleges that senior management at the ASC interfered with enforcement cases, engaged in favouritism and condoned lewd conduct among staff.

The Financial Post said a review of the provincial public markets regulator by Calgary corporate lawyer Perry Mack revealed a “dysfunctional” agency with questionable management practices, lax governance and a toxic atmosphere that contributed to staff departures in recent years.

In October, the ASC announced that Sibold would be leaving his post this spring after five years at the helm.

In a statement, Sibold expressed outrage at what he said were “scurrilous and groundless allegations.”

“It is important that you know that the allegations are totally without foundation. They have no basis in fact and I categorically reject and deny each and every one of them,” he added.

Sibold also announced his intention to sue the National Post and the reporter who wrote the articles.

ASC executive director David Linder said there was “no merit whatsoever” to the allegations.