On June 22, 2006, Newfoundland and Labrador Auditor General John Noseworthy ended his probe into spending at the house of assembly by releasing his first of five reports. In the reports, Noseworthy alleges that millions of public dollars were misused by the house of assembly. His investigations have shocked the province and caused one MHA to resign his cabinet post.
Why are the auditor general's reports coming out now?
Former auditor general Elizabeth Marshall was barred in 2000 and 2002 from auditing MHA claims. The decision was made by a bipartisan committee of the legislature in the spring of 2000. Brian Tobin, who served as Liberal premier between 1996 and 2000, said he was not aware of the alleged misspending, and that government would not have been able to prevent it.
Following the 2003 provincial election, Premier Danny Williams empowered Auditor General John Noseworthy to examine spending by politicians at the house of assembly. Noseworthy released his reports in June and July of 2006.
Noseworthy's handling of the investigation, however, has received criticism from former Liberal premier Roger Grimes. Grimes, who was premier between 2001 and 2003, said he believes Noseworthy should have waited until he was ready to deliver a full report that would name everyone involved, instead of releasing separate reports over several days.
What do the reports address?
Noseworthy released five reports that deal with two investigations – one into MHA constituency spending and another into questionable payments made to companies by the legislature.
One report deals with payments made by the house of assembly to four suppliers.
The remaining four deal with the constituency allowance claims of four politicians: former Tory cabinet minister Ed Byrne, New Democrat MHA Randy Collins, Liberal MHA Wally Andersen and former Liberal cabinet minister Jim Walsh.
What are constituency allowances?
Constituency allowances are given to members of the Newfoundland and Labrador legislature to pay for such items as office rentals, supplies and miscellaneous services. The allowances are tax-free and vary from member to member, depending on the size of their district and distance from the capital.
Noseworthy, however, said the expense account system lacked any checks and balances.
Although an all-party committee of politicians is supposed to keep watch on spending in the house of assembly, there was only one public servant whose job it was to approve the expense claims.
In the wake of the audit scandal, Premier Williams has asked Derek Green, the chief justice of the Newfoundland Supreme Court trial division, to review whether members of the legislature should be able to keep tax-free allowances. Williams has also asked Green to recommend how members of the house of assembly should be compensated for their constituency allowances and to recommend a system that cannot be abused.
What happens next?
The Royal Newfoundland Constabulary is investigating allegations that Byrne, Collins, Andersen and Walsh overspent their constituency allowances by a combined total of $1 million. Police are also looking into questionable payments of $2.8 million that were made to four companies.
The RNC said it is impossible to know when the investigations will be complete. However, Byrne's lawyer, Bob Simmonds, estimates the investigation will take about two years.
Williams has also asked Justice Green to look at constituency spending and recommend a system that cannot be abused. Williams said Green's recommendations could be ready by the fall, and they will be submitted to the Internal Economy Commission, a bipartisan group that governs the legislature's internal dealings.
