Among his findings:
1. A culture of entitlement exists in some parts of the senior public service that allows senior mandarinsto flaunt treasury board guidelines without consequence. Noseworthy pointed to numerous examples of executives receiving salary overpayments with no recovery being sought. The problem is a crhonic one, going back decades...but hey, Danny Williams and his finance minister were elected to implement a New Approach.
2. In December 2003, a Mount Pearl manufacturer received a $300, 000 government loan based on a directive from the premier's office despite advice to the contrary from government officials:
Contrary to the recommendations of officials at the Department of Finance and the Department of Innovation Trade and Rural Development, a directive from the Premier's Office in December 2003 resulted in a manufacturing company being provided with a $300,000 loan in 2004.3. Government contravened the Financial Administration Act and other government policies in the way it provided financial assistance to Icewater Seafoods; and,
Officials cited issues such as:
- the loan would not be secured in that prior liens of other investors would have claim to the company's assets in the event of bankruptcy;
- the investment would not generate additional employment in the Province;
- a revised business strategy of the company was not advanced enough to determine if the company would be viable; and,
- several other existing investors were not prepared to increase their investment.
4. The provincial government retains a considerable number of surplus properties yet has no strategy for managing or disposing of them thereby increasing government costs.
In media interviews yesterday, Loyola "Rain Man" Sullivan looked extremely uncomfortable. That's likely because Noseworthy's audit revealed significant problems in financial administration that Sullivan can't slough off on the previous crowd.
He and his boss own a bunch of these problems, yet they haven't done anything about them.
Sorta like the debt strategy we are still waiting for.
Two years later.