Manitoba Hydro's head office is based in a recently constructed downtown Winnipeg building. (CBC)Manitoba's provincial auditor general is in a conflict and shouldn't lead a review of Manitoba Hydro, the leader of the Opposition Progressive Conservative Party is charging.

The NDP government ordered the audit of the Crown corporation in late October after a former consultant raised questions about the power company's risk-management strategies.

The whistleblower, who has not been named, alleged Hydro is miscalculating how much power it can generate and sell, and the province could face significant blackouts in the future. She also alleged mismanagement has cost Hydro more than $1 billion.

The standing committee on Crown corporations held a meeting Tuesday night to consider Hydro matters and review Hydro's annual report.

Progressive Conservative Party Leader Hugh McFadyen is questioning the independence of Auditor General Carol Bellringer in reviewing complaints against Hydro. (CBC)Following the meeting, Progressive Conservative Party Leader Hugh McFadyen criticized the NDP for keeping Auditor General Carol Bellringer on the case.

Bellringer was on the board of directors for Manitoba Hydro in 2006 when the whistleblower was under contract to the Crown corporation, McFadyen noted.

Bellringer also chaired Hydro's audit committee in 2004 and 2005, examining data immediately after the period when the whistleblower alleged that mismanagement, combined with a drought, led to the loss of more than $400 million.

"You've got an auditor that's conflicted [and] we have a former minister in Mr. [Greg] Selinger, who's [now] premier, who was obviously regularly updated at what was going on at Hydro and yet no accountability [has been given] to the people of Manitoba," McFadyen said.

Manitoba Hydro CEO answers questions during a meeting Tuesday of the standing committee on Crown corporations. (CBC)Finance Minister Rosann Wowchuk, also the minister responsible for Hydro, has refused to remove Bellringer from the review.

There is no word on when the audit is to be completed.

Following the standing committee's meeting on Tuesday, Hydro CEO Bob Brennan dismissed the whistleblower's allegations, saying they are unfounded and the company is in excellent shape.

There may be some issues that need to be addressed but nothing significant, he said.

"I can't imagine when somebody is doing an in-depth review that they won't find something. I like to think we're perfect but you know, we're not."