PACP Committee News Release
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Standing Committee on Public Accounts |
HOUSE OF COMMONS CHAMBRE DES COMMUNES OTTAWA, CANADA K1A 0A6 |
Comité permanent des comptes publics |
For immediate release
NEWS RELEASE
MORE NEEDS TO BE DONE TO PREVENT CONFLICTS OF INTEREST IN THE MANAGEMENT OF GRANTS AND CONTRIBUTIONS
Ottawa, April 19, 2010 -
Natural Resources Canada did not take sufficient action to prevent a conflict of interest situation from arising in the management of its contribution agreements, according to a report of the Standing Committee on Public Accounts presented to the House of Commons today.
In May 2006, the Office of the Auditor General (OAG) released an audit of Natural Resource Canada’s (NRCan) management of selected contribution agreements. The audit determined that a consultant who had helped NRCan develop two contribution programs, subsequently worked for the organizations that received funding under the same programs. The OAG concluded that NRCan knew of these circumstances and permitted the conflict of interest to occur by the way that it managed the contracts and contribution agreements. Additionally, NRCan continued to fund one of these organizations, in contravention of section 34 of the Financial Administration Act, despite evidence of its insolvency and its failure to pay subcontractors.
The Public Accounts Committee was very troubled by the events that took place within NRCan’s Office of Energy Efficiency. While NRCan had taken a number of actions in response to an internal audit, the Committee was concerned that it was only after the OAG’s audit that NRCan took action with respect to conflicts of interest. Yet, these actions do not appear to have been sufficient to prevent another conflict of interest situation from arising.
As conflicts of interest will likely arise elsewhere, it is necessary for all departments to take action. Thus, the Committee recommended that the Treasury Board of Canada Secretariat provide all departments and agencies with additional guidance to assist them in identifying and avoiding conflicts of interest by contractors and the recipients of transfer payments.
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