Auditor General Sheila Fraser took aim at more than the federal sponsorship program Tuesday, criticizing Ottawa's $101-million purchase of two new VIP jets, inefficiencies in the EI system, and the crumbling state of Canada's heritage buildings and parks.

Releasing her audit of government spending, Fraser said there was no reason to buy two new Challenger jets to transport the prime minister, members of cabinet and other VIPs.

The Department of Defence was happy with the performance of the existing planes carrying out that duty, she said.

Under Jean Chrétien, the federal government bought two of these Challenger 604 jets (photo courtesy Bombardier).
Under Jean Chrétien, the federal government bought two of these Challenger 604 jets (photo courtesy Bombardier).

The report also exposed that the $101-million contract for the new jets was given to Bombardier without being put to tender.

Fraser criticized the Employment Insurance program for providing poor telephone service at a time when it has a record surplus of $43.8 billion.

Sheila Fraser
Sheila Fraser

Her report showed that 65 per cent of callers across Canada heard busy signals when dialling in for information, with the problem most acute for callers from Alberta and the Northwest Territories.

"Service in some regions was significantly and chronically below targets, and repeated efforts to improve services have had little impact," Fraser wrote.

Fraser's findings were questioned by Human Resources Development Canada, which said its own survey shows that 95 per cent of EI recipients are satisfied with the program.

The auditor general also gave a failing grade to the Department of Indian and Northern Affairs for not following guidelines in hiring outside managers to help First Nations bands facing budget problems.

Last year, $7 million was paid to outside managers who did not go through a public tender process, according to Fraser.

The state of Canada's physical heritage rang warning bells for the auditor general as well.

Forts and other historic buildings across the country are crumbling for lack of preservation dollars, some historically important documents are rotting because of improper storage, and others are being snapped up by private collectors.

Topping her list is 170-year-old Fort Henry in Kingston, Ont., which Fraser describes as "seriously impaired." Without proper attention, it could crumble to the ground in two years, she warned.

She added that two-thirds of historic sites administered by Parks Canada and federal heritage buildings are in "poor to fair condition."

"Once a piece of our history is lost, it's lost forever," Fraser said. "And the situation is not improving."

Finally, Fraser called for more external review bodies to check the work of the federal anti-money laundering centre and the Canadian Forces. She also said that the RCMP's security activities should be scrutinized more closely.