CHARLOTTETOWN, P.E.I. — A bill aimed at allowing the Island’s auditor general to scrutinize recipients of government funding received unanimous support from P.E.I.’s MLAs on Tuesday night.
The bill, introduced by Green MLA Michele Beaton, provided an amendment to the province’s Audit Act
And would allow the Island’s auditor general to audit private companies and non-profits that have received government funding. This funding could be in the form of loans, grants, subsidies or tax credits.
"The auditor general could always audit crown corporations or government departments. (But) to go that added step when a funding recipient received the money, it would have to be done in co-operation," Beaton said in an interview.
"What this amendment does is, it makes it so you have to comply with a request from the auditor general."
The auditor general is viewed as a trusted watchdog on government spending and programming and produces a yearly report examining various government programming. Last week, MLAs unanimously approved the appointment of Darren Noonan as P.E.I.’s new auditor general.
During debate of the bill in the legislature on Tuesday night, Beaton raised the auditor general’s special examination of the e-gaming initiative. In the report, then-auditor general Jane MacAdam stated that one law firm, McInnes Cooper, refused to turn over documents related to the initiative. McInnes Cooper was retained by the Mi’kmaq Confederacy of P.E.I.
"There was a major issue for them to get the information that they were looking for," Beaton said.
"This takes away that noise or that obstacle for the auditor general so that the information that they require for that audit is actually received."
The bill comes amid an opposition-lead review of COVID-19 relief program spending by the provincial government. Premier Dennis King has said the auditor general will review spending on COVID-19 related relief programs.
Some of these funds have gone to non-profit organizations, such as the United Way. Other funds has been dispersed to private companies.
Beaton has raised concerns about a $4.7 million fund allocated to the P.E.I. Potato Board for cold storage of a remaining 2019 crop of potatoes. Beaton has argued these funds were either partially allocated to Cavendish Farms or offset costs Cavendish Farms may have otherwise incurred to store these potatoes prior to processing them.
Premier Dennis King spoke in favour of the amendment in the legislature, saying government should welcome measures that increase transparency and accountability.
"I think governments all should welcome accountability and I think the more tools we give offices like the auditor general, the greater the ability of accountability," King said.
“I think more accountability is a good thing for taxpayers, but I think it's a good thing for us as legislators in here."
The bill passed second reading unanimously on Tuesday night.
