ETHI Committee Report

Mr. Pierre-Luc Dusseault, M.P.
Chair, Standing Committee on Access to Information, Privacy and Ethics
House of Commons
Ottawa, Ontario
K1A 0A6

Dear Mr. Dusseault:

The Government of Canada would like to thank the Standing Committee on Access to Information, Privacy and Ethics for its work regarding the management practices at the Old Port of Montreal Corporation Inc. (OPMC).

I have reviewed the requests put forward by the Standing Committee in its report “Expenses of the Members of the Board of Directors and of Senior Management of the Old Port of Montreal .”  I would like to advise the Committee that the Government shares the Standing Committee’s concerns about the seriousness of the issues that have been raised.

The Government acted immediately in response to the allegations. On May 15, 2012, the Governor in Council approved an Order in Council asking the Auditor General (AG) to inquire into and report on certain human resources practices, travel and hospitality expenditures, remuneration and benefits, asset management and leasing activities by OPMC. Once completed, this report will be made public.

As an interim measure, OPMC’s Board of Directors procured the services of a third-party accounting firm to provide due diligence review services to OPMC with respect to all of its disbursements from May 2012 onward.

I also wish to inform the Committee that, pursuant to section 138 of the Financial Administration Act , OPMC is subject to a special examination by the AG in fall 2012. This separate investigation is a cyclical accountability requirement for Crown Corporations. The  AG will provide an independent assessment of OPMC’s management as a whole and will look at OPMC’s systems and practices to determine with reasonable assurance whether assets are safeguarded, resources are managed economically and efficiently, and operations are carried out effectively. Once completed, this report will also be made public.

The Government recognizes the importance of sound management practices by all federal organizations. The Government is confident that the inquiry requested of the AG in May 2012 and the special examination being conducted by the AG in the fall 2012 will provide important advice to the Government and to OPMC on any issues to be addressed and any corrective measures to be taken.

The AG’s reports on the inquiry requested by the Government and on the special examination will be made public. The timing for completing the inquiry requested of the AG in May 2012 is at the AG’s discretion. The findings may be reported by the AG as part of the special examination being conducted at OPMC or through a separate report. With regard to the special examination, OPMC’s Board is required to make it available to the public within sixty days after receipt. If the inquiry’s findings are the subject of a separate report, the AG will submit the report to the Speaker of the House of Commons for tabling.

Pursuant to Standing Order 109, I am tabling this letter in the House of Commons as the Government’s Response to the Standing Committee’s report.

I would like to thank you again for the work undertaken by the Standing Committee.

Yours sincerely,

Rona Ambrose