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| Backgrounder(s) & FactSheet(s): | Backgrounder |
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| Backgrounder(s) & FactSheet(s): | Backgrounder |
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VICTORIA – Following an internal audit by the Office of the Comptroller General, PriceWaterhouse Coopers LLP (PwC) was retained to undertake an investigation of the CareNet Technology Society and the provincial government’s dealings with Douglas F. Walls. The report was received in final form Thursday, May 6, 2004, and the Office of the Comptroller General reviewed it for accuracy and completeness.
The report was released to the Deputy Minister to the Premier Friday, May 7, 2004. Copies were provided to ministers Monday, May 10, 2004. In accordance with Premier Campbell’s direction, the report is being released in total, subject only to severing necessary for compliance with the Freedom of Information and Protection of Privacy Act. Almost all the severing results from Section 22 of the Freedom of Information and Protection of Privacy Act, which does not allow disclosure of third party information without consent. In the interest of early release of the report, it was not possible to obtain the required consents.
Other than the terms of reference, contained in the report, no restrictions were placed on the PwC investigation. The investigation was extensive, involving interviews of almost fifty people and review of documentation and electronic files.
The investigation identified no evidence of fraud or misappropriation of government funds, and no undue influence or inappropriate relationship with ministers was found.
When the investigation was commissioned, Mr. Chris Haynes’ employment as Deputy Minister of Children and Family Development was terminated, though he continued to receive salary and benefits pending receipt and review of the PwC report. Government and outside legal counsel have reviewed the report and advise that it does not provide a basis for withholding a severance payment in lieu of notice. Based on his service, he is entitled to eighteen months severance, beginning from the date of his termination. His counsel has been advised of this conclusion. The cost of eighteen months’ severance is $288,867.
Based on this legal advice, the Deputy Minister to the Premier independently authorized the severance arrangement last week.
The PwC report put forward five recommendations to government to address issues they identified in the course of their investigation. Most of the recommendations are already covered by existing policies. Therefore the action plan will focus on alerting government executives and their staff to the issues raised in the report. Emphasis will be on following existing policy and follow-up where necessary.
The cost of the initial internal audit by the Office of the Comptroller General was $27,000. The cost of the PwC review was $295,000. In addition, the cost for Internal Audit to supervise the review was $50,000, and the cost to retrieve the required email files was $25,000. These costs were necessary to ensure there was a full review of the matter that addressed all potential issues.
The audit report is available on the government web site at: http://www.fin.gov.bc.ca/pwc_audit.pdf
Auditor Ron Parks is available to answer media questions at: 604 806-7094. Ken Dobell is available to answer media questions at: 250 356-2209.
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