Standing Committee on Public Accounts

Comité permanent des comptes publics

For immediate release

Ottawa, June 8, 2018 -

Atomic Energy of Canada Limited (AECL) had a significant deficiency in its Board of Directors’ composition and weakness with the timely appointment of their Chief Executive Officer. These problems which the Corporation did not have control over have been addressed. Other weaknesses were found in corporate management and practices, but most of them were also addressed, according to a report of the Standing Committee on Public Accounts presented to the House of Commons today by the Hon. Kevin Sorenson, Chair of the Committee.

In the fall of 2017, the Office of the Auditor General of Canada (OAG) released a performance audit whose objective was to determine whether AECL’s corporate management practices and contract management were adequately executed. The audit showed a significant deficiency in the composition of its Board of Directors. For example, at the time of the audit, the Board membership was incomplete and its members were appointed on an interim basis. Subsequent to the audit period, the Minister of Natural Resources appointed the following positions on a long term basis: the President and Chief Executive Officer, the Chair of the Board of Directors, and four members of the Board. The terms of these positions were staggered in order to preserve continuity in the management of operations.

Moreover, a weakness was found in the skills of the contract management team. AECL has also taken measures to address the situation. Another weakness was found in the lack of communication of the performance measurement of the private business chosen by AECL to fulfill its mandate. In its report, the Committee made two recommendations, one to ensure the monitoring of the corrective measures taken to increase training of the contract management team, and another to establish the communication of a series of comprehensive performance targets and measures, in response to the OAG’s report recommendations.