Unflattering CanNor audit just “a draft,” Aglukkaq says

(Updated Oct. 7, 3:50 p.m.)

Nunavut MP Leona Aglukkaq, the minister responsible for the Canadian Northern Economic Development Agency, said Oct. 7 that she’ll put together an action plan to improve financial management at the agency as soon as a final audit is done.

“I have made it clear that all departments I oversee must use taxpayers’ dollars well,” Aglukkaq said in an emailed statement.

“Once the audit is finalized, I will review it, and the department will be expected to address any problems identified by the auditors.”

The Société Radio-Canada’s television news service reported Oct. 5 that an audit performed by the Office of the Comptroller-General of Canada found that since 2009, the CanNor agency contravened numerous financial management rules.

In the audit report, the federal government’s comptroller found the agency violated almost all rules covering the control of expenses, Radio-Canada reported.

That includes:

• contract management rules;

• the use of credit cards;

• travel expenses;

• activities related to hospitality for invited “guests.”

The audit also found that Nicole Jauvin, who headed the CanNor agency until her retirement at the beginning of this past summer, has been hired on as a temporary advisor at a salary of $200,000 a year, Radio-Canada reported.

And the audit found the agency has yet to set up a “financial management framework,” which means a basic set of rules.

During question period Oct. 6, opposition MPs lambasted Aglukkaq and Prime Minister Stephen Harper, who announced the creation of CanNor in 2009, during a summer visit to Iqaluit.

“Instead of helping northerners, the government is breaking all the rules of financial management. How can the prime minister, who was the one who announced the creation of the agency in 2009, justify such a fiasco?” said François Lapointe, the NDP member for Montmagny—L’Islet.

Western Arctic MP Dennis Bevington, also a New Democrat, weighed in as well.

“This appalling record should put the Conservatives to shame,” Bevington said.

Aglukkaq responded by suggesting she’ll have little to say about the issue until after she receives the final audit of CanNor.

“I look forward to receiving the final audit. Once we have received it, we will address the issues to make improvements,” Aglukkaq said in the House.

Aglukkaq was assigned the CanNor portfolio in May 2011. The report appears to have been produced this past March, and leaked recently to Radio-Canada.