WINNIPEG -- In the midst of budget talks, a heated dispute broke out between the mayor and one city councillor and his former employment with Peter Nygard.

“The revelation, about a week ago, that the chair of the police board, Councillor Kevin Klein had worked for Peter Nygard’s company was something that was news to me and many others at city hall,” said Mayor Brian Bowman.

While addressing the media on Thursday, Bowman brought up Klein's former employment,

He said he reached out to Klein to make sure he'd be able to continue his work as chair of the police board without distraction, amid legal action against Nygard.

Bowman said Klein told him there's no issue.

Meanwhile Klein said he's offended by the mayor's statements, calling them juvenile and accusing the mayor of trying to discredit him before the budget is tabled.

“This is a great way to put you onto something else instead of what I believe now is going to be a terrible, terrible budget because they certainly haven't proven to do a good one yet,” said Klein.

Klein said he worked at Nygard Biotech for a short time and left the company on his own.

Nygard is named in a civil suit that was recently filed in New York.

The suit alleges 10 women were drugged and forced to engage in sex acts at "pamper parties" at Nygard's Bahamas estate.

None of the allegations have been tested in court.