MLA “mystified” over vehicle tenders sent ahead of budget approval

Iqaluit-Tasiluk MLA George Hickes, above, and other MLAs are pushing the Nunavut government to increase transparency in departmental spending after equipment was purchased before it was approved in the coming capital budget. (PHOTO BY STEVE DUCHARME)

Sealift schedules aren’t an excuse for buying vehicles without permission, Nunavut’s Department of Economic Development and Transportation learned, following a recent motion passed unanimously in the legislative assembly to cut back a budget that MLAs realized was already spent before it was approved.

MLAs found during the recent sitting of the Nunavut legislature that tenders have already been issued to spend one-third of the department’s capital estimate of $3 million for small projects and equipment.

“The majority of this funding is for the acquisition of mobile equipment for Nunavut airports, such as graders, runway inspection vehicles and compactors,” Iqaluit-Tasiluk MLA George Hickes said during committee of the whole on March 13.

While he does not oppose the purchases themselves, Hickes said, “there is an important principle at stake,” when he brought the issue up the following day during question period.

Then on March 16 in committee, Hickes made a motion to reduce the 2018-2019 budget set for the purchase of vehicles or mobile equipment for any department that acquired those items using surplus funding during the 2017-2018 year.

“I’m a little mystified as to how the departments have been able to apparently go ahead and spend money for the next fiscal year before it has been appropriated,” he said.

“If they already have that item, no department is going to miss out on any of the items on their list. This is an exercise in place. We’re all working together to make sure that we’re expending dollars in a fiscally responsible manner.”

Because of the recent election, GN capital estimates that would have been approved in the fall were instead approved in the just-completed winter sitting. While purchases for ongoing multi-year projects can go ahead, single-year small purchases are supposed to wait until the budget is approved.

But the election timeline put some departments in a bind when it came to making sealift orders, Finance Minister David Akeeagok pointed out.

“We were informed that a department had borrowed from different budget items to purchase the vehicle or have ordered the vehicle in the interim,” Akeeagok said. “The vehicles that were purchased right away before the capital was approved, we will review them properly again.”

On Hickes’ request, Akeeagok said his department is reviewing other areas to make sure purchases are properly approved.

“If there was money that was spent that was not supposed to be spent, I will report that back to you,” he said. “I want to have every opportunity, as well as to be transparent.”

“Purchasing vehicles is only possible by following the rules. Employees can’t just go shopping for any item by signing the form.”

But Premier Paul Quassa defended the spending as being purely logistical and not done in “spite.” He said poor use of money is not in the spirit of good government and misappropriations are never done intentionally.

“It isn’t the first time an election has caused financial planning issues. This appropriation we are reviewing will not resurface for another four years. This type of planning hiccup won’t occur again in the future,” Quassa said, adding that sealift schedules are not to be missed.

“There are no intentional overages in ordering equipment, as that is not how government operations are conducted. We all know that these government funds are public money, it is the Nunavut residents’ money that we are spending.”

But Hickes said MLAs are concerned departments might be jumping the gun on this kind of spending in other years as well.

“There have been some suspicions raised to me from my colleagues over the last few days that this is not just a one-time occurrence during election year cycles,” he said.

“If departments are taking surpluses from other areas to get a head start on their next year’s unapproved budget, then they don’t need those items because they have just purchased them already with surplus items,” he said.

Iqaluit-Manirajak MLA Adam Lightstone said he was shocked to learn that purchases could be made before the budget was appropriated.

“One of the main principles behind the Financial Administration Act is, of course, to protect public funds, but also to ensure that government does not incur an expense that does not have an appropriation,” he said.

After looking through departmental spending himself, Arviat North-Whale Cove MLA John Main said he noticed budgets for small capital increasing and thinks spending is also getting less strict.

“Looking at the management, it seems like it’s a discretionary fund,” he said. “As members of the legislative assembly, we have the responsibility to make sure that the monies appropriated are used for what they’re identified for.”

Earlier in the sitting, Hickes called the advanced spending an affront to the basic principles of parliamentary democracy.

“In our country the government is not allowed to spend money until the elected members of the legislature approve the proposed spending,” Hickes said.