Errors in judgement #nlpoli

March 13, 2014 was a Thursday.

Normal cabinet day.

According to Auditor General Terry Paddon’s report on the Humber Valley Paving contract,  Nick McGrath, then minister of works and transportation called his deputy minister at 8:45 AM and asked him whether he’d heard that HVP wanted to get out of their Labrador paving contract. (p.39) He hadn’t.

There’s no indication of how McGrath became aware of HVP’s problems.  According to Paddon’s report,  McGrath told him that he “may have” heard about HVP from colleagues. (p.54)  It’s all pretty vague.

The deputy called Gene Coleman at 9:15 AM, according to Paddon.  Coleman,  son of the erstwhile Conservative leadership candidate McGrath claims he had not heard of, confirmed the company “would not be going back to Labrador” (p. 54) in 2014, at least not without compensation.  Coleman indicated that without compensation,  HVP would want a mutually-agreed termination of the contract with the government. (p.39)

The Fairity Intervention

At 9:30 AM,  the deputy got a call from Kevin O’Brien.  He was calling about  the HVP contract, too, even though O;Brien had no reason to be involved.  (p. 39)  Asked by Paddon later how he became aware of the issue, O’Brien  - who was also an organizer for Frank Coleman’s leadership campaign - said that he had heard “colleagues” talking,  wanted to speak with the deputy about other issues but raised the HVP issue because of the potential connection to forest fires in Labrador.  (p. 54)   O’Brien was minister of fire and emergency services

McGrath comments “preposterous”: surety association #nlpoli

From the industry association representing companies that provide sureties and other bonds, released May 26, 2014:

News Release
For Immediate Release: May 26, 2014

Recent remarks by Nick McGrath, Minister of Transportation and Infrastructure for Newfoundland and Labrador about the use of surety bonds on public projects are completely preposterous. So says Steve Ness, the President of the Surety Association of Canada.

“Mr. McGrath clearly doesn’t understand surety bonds; nor does he comprehend how they work to protect public construction buyers from serious losses.” said Ness. His comments were made in response to a statement made by Minister McGrath following the ministry’s decision to release Humber Valley Paving from its obligations to complete an unfinished project without making a claim on its performance surety bond. The government instead opted to see to the completion itself and has now retendered the uncompleted portion of the project. In explaining this controversial decision, McGrath stated: "If I had called in the bonds, I would not have got the job done on time and on budget," [sic (comma in original)]