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In Depth

Newfoundland and Labrador audit scandal

The players

July 8, 2006

Wally Andersen, Liberal Member of the House of Assembly

Long-time MHA Wally Andersen, who represents Torngat Mountains in Labrador, has been accused of overspending his spending constituency allowance limit by $243,244. Auditor general John Noseworthy said in his report that Andersen spent $591,644 over four years between 2003 and 2006. On June 27, 2006, Andersen was the third political figure to acknowledge he was being investigated.

Andersen was first elected in Torngat Mountains in 1996, was re-elected in 1999, and on Nov. 6, 2000, he was appointed parliamentary secretary to the premier on aboriginal affairs. On Feb. 13, 2001, he was appointed parliamentary secretary to the minister of Labrador and aboriginal affairs. About two years later, he was appointed minister of the same department.

Ed Byrne, former natural resources minister and government house leader

Progressive Conservative cabinet minister Ed Byrne's resignation rocked Newfoundland and Labrador's political circles. Byrne, one of Premier Danny Williams most trusted colleagues, stepped down as house leader and from his natural resources portfolio on June 21, 2006, after auditor general John Noseworthy expressed concern over the provincial legislature's financial records.

A day later, the full extent of the allegations was revealed in Noseworthy's report — Byrne had spent more than $326,000 more than his $31,500 limit on his constituency expenses, public money normally allotted for office rent, equipment and supplies. Noseworthy said Byrne signed and submitted claims for $358,142 during 2003 and 2004, with the paper trail pointing to Byrne's personal bank accounts.

Byrne was the first of four Newfoundland and Labrador politicians to be named in the audit scandal. Premier Danny Williams suspended Byrne from his position, and handed over his portfolio to Virginia Waters representative Kathy Dunderdale. But, Williams said Byrne would be welcome in cabinet if he is cleared.

Byrne was first elected to the house of assembly as a representative for Kilbride in 1993 and was re-elected in 1996, 1999 and 2003. He was leader of the Progressive Conservative Party of Newfoundland and Labrador and leader of the opposition from 1998 to 2001. He stepped down to make way for Williams to lead the party. Byrne served as minister of natural resources from November 2003 until he resigned.

Randy Collins, New Democrat Member of the House of Assembly

Labrador West representative Randy Collins was the second legislative member to acknowledge he was under investigation by John Noseworthy. When Noseworthy's report was released, it showed that Collins spent $295,418 more than his constituency allowance limit. Collins reportedly signed and filed claims totalling $525,018 over four years between 2003 and 2006. Collins was first elected to the house of assembly in 1999, and was re-elected in October 2003.

Bill Murray, N.L. former director of financial operations

Bill Murray sits at the centre of the scandal, as he was the person in charge of the provincial house of assembly finances. He managed the constituency allowances that the auditor-general's investigation is now focused on. The auditor-general's report said the former director placed the orders, approved the invoices and paid the bills.

Not only were these orders untendered and with little documentation, payments were made for $69,000 in gold rings purchased from Unique Keepsakes — a company Murray owned. The rings were reportedly purchased for legislative members, but few of them received the rings and some didn’t know they existed. Liberal Leader Gerry Reid said he got one from Murray six years ago, and at least six of his 11-member caucus received rings.

Unique Keepsakes was paid about $170,000 of public money between 2001 and 2005, the audit said. The money came from various budgets of the house of assembly, including members' constituency allowances.

Murray was suspended from his position in June 2006.

John Noseworthy, Auditor General

Newfoundland and Labrador auditor general John Noseworthy has pinpointed $3.9 million in questionable spending in the Newfoundland and Labrador legislative finance books. About $1 million of that amount is overspent constituency allowances — normally used to pay for expenses such as office rent, equipment and supplies — and more than $2.8 million stem from payments to companies for untendered items. Noseworthy released the information in a series of reports detailing payments to companies and allowance claims of each of the politicians implicated.

However, the auditor general has been criticized for the way he has handled the investigation. Former Liberal premier Roger Grimes said Noseworthy should have waited until he was ready to issue a full report naming all involved, rather than releasing separate reports over time.

Noseworthy has been auditor general since April 2002. Premier Danny Williams empowered Noseworthy to examine spending by politicians, after the Tories won the election in 2003.

Jim Walsh, former N.L. Liberal cabinet minister

Jim Walsh was the fourth Newfoundland politician to acknowledge he was under investigation by the auditor general. John Noseworthy's report, detailing Walsh's constituency allowance claims, showed the former assembly member overspent his limit by $228,169. Walsh signed and filed claims totalling $289,169 between 2003 and 2004.

In the wake of the scandal, Walsh went on administrative leave from his post as federal Transportation Safety Board member. He will remain on paid leave until the situation is resolved.

Walsh served as tourism minister in the early 1990s for less than two years. He was forced to resign because of revelations of cash campaign donations on Feb. 22, 1994, but was vindicated in a later investigation. He returned to cabinet in February 2003, when then premier Roger Grimes appointed Walsh minister of works, services and transportation. He was a member of the house of assembly from 1989 until the October 2003 election, when Progressive Conservative Dianne Whalen defeated him.

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