John Hickey has relinquished his post as Newfoundland and Labrador's transportation and works minister, pending a review of expense claims flagged as questionable by the auditor general's office.

John Hickey has stepped down as Newfoundland and Labrador's transportation and works minister.
(CBC)

Premier Danny Williams told reporters Thursday that Hickey had agreed to step aside because of the allegations in a report from provincial Auditor General John Noseworthy. Noseworthy alleged that Hickey, who represents the Labrador district of Lake Melville, submitted double bills through his constituency allowance that added up to about $3,700.

Williams pointed out that Hickey has not been shown to have exceeded his constituency allowances, unlike five politicians named in a series of reports that Noseworthy filed through 2006.

'I don't want a rush to judgment here by people.'

-Premier Danny Williams

"I don't want a rush to judgment here by people," Williams told reporters Thursday.

"I have done what I have done because, as the premier of the province, if I have a person in my cabinet [with] any kind of cloud over at all, [I must] either ask them to resign or move them aside until that cloud passes or is dealt with."

Williams said Noseworthy would file a final report on Hickey's billings, which involved miscellaneous expenditures during his constituency allowance.

Williams said the issue could even be the result of an accounting error. However, he also suggested the issue could be part of a larger, systemic problem.

Hickey acknowledges 'mistakes made'

Hickey, who met with Noseworthy on Thursday morning, said he saw problems with the claims.

'My point of view here is simple … if I owe the government money, and there were mistakes made, we'll rectify that immediately.'-John Hickey

"Obviously there [were] mistakes made in the submissions of expense claims … I can see the mistakes from what the auditor general has determined here," Hickey said.

"My point of view here is simple … if I owe the government money, and there were mistakes made, we'll rectify that immediately."

Repayment hand-delivered to legislature

Hickey hand-delivered a cheque Thursday to the house of assembly, for the full amount of the double payment.

Hickey said he also asked an aide to go through his claims and make sure his allowance is audited every year by an outside firm.

Noseworthy delivered a series of audits through 2006 that rocked political circles in the province and cost another cabinet minister his job.

Ed Byrne was forced to resign as natural resources minister in June after Noseworthy found Byrne had been overspent his constituency allowance tenfold over a two-year period.

In December, Noseworthy filed a followup report that found Byrne had received excessive payments worth $467,653 since the 1999 fiscal year.

Williams faces several vacancies

Noseworthy's reports also named Liberals Wally Andersen and Percy Barrett, New Democrat Randy Collins and former Liberal Jim Walsh as having received excessive payments.

Hickey was first elected to the house of assembly in 2003, and was appointed to cabinet in July 2006. He also served as minister responsible for Labrador affairs.

Hickey's move comes on the heels of a resignation last week of a key minister.

On Dec. 29, Loyola Sullivan surprised many by announcing he was stepping down as finance minister and retiring from politics.

Tom Marshall, the former justice minister, has taken on the finance portfolio, while Fisheries Minister Tom Rideout is also handling the justice portfolio while Williams mulls a more permanent appointment or a shuffle.

A senior aide to Williams has also resigned. Ross Reid stepped down on Thursday as deputy minister in the premier's office, but is staying with the Progressive Conservative party to chair the campaign leading to the Oct. 9 general election.