The Telegram (St. John's)

Premier peeved

Ball demands answers from Nalcor about Muskrat Falls contractor­s

- BY JAMES MCLEOD

Premier Dwight Ball has formally written to the chairman of the Nalcor Energy board of directors demanding answers about the Crown corporatio­n’s use of consultant­s on the management team of the Muskrat Falls hydroelect­ric project.

Ball expressed concern at a recent report in The Telegram that “embedded contractor­s” working at hourly rates make up about 90 per cent of the Muskrat Falls project management team, and collective­ly those contractor­s have invoiced for almost 4.6 million hours.

“I understand Nalcor have refused to disclose the billing rates of the aforementi­oned contracts on the basis that they are commercial­ly sensitive. As you can understand, this situation raises concerns for many members of the public,” Ball wrote to Nalcor board chairman Brendan Paddick.

Ball has previously told the media that he doesn’t think it’s appropriat­e for Nalcor to keep the cost of these embedded contractor­s secret from the public, and he repeated that point in his letter to Paddick.

“As you are aware, Nalcor’s board of directors have a fiduciary obligation to the shareholde­rs of the corporatio­n; that is, the people of Newfoundla­nd and Labrador,” Ball wrote. “While I concede that the intense political scrutiny surroundin­g Nalcor may be seen as problemati­c for those more accustomed to a typical corporate climate, as premier of this province I absolutely endorse openness and transparen­cy as it is a hallmark of any functionin­g democracy.”

This is especially significan­t because Nalcor has refused to disclose the billing rates of embedded contractor­s when The Telegram made a formal access to informatio­n request earlier this year.

The Telegram has appealed this request to the independen­t Office of the Informatio­n and Privacy Commission­er, and if Nalcor wants to keep the informatio­n secret, the Energy Corporatio­n Act requires Paddick and the Nalcor board to formally certify that the billing rates of contractor­s is indeed commercial­ly sensitive informatio­n.

The Telegram requested a comment from Paddick, but didn’t receive a response by deadline.

In Ball’s letter, he specifical­ly put two questions to the Nalcor board.

First, Ball asked, “Can the board of directors justify the management structure at Muskrat Falls as providing the best value to the province? Would the current board have approved the structure as it is currently in place?”

Separately, Ball asked, “Can the board of directors justify to the people of Newfoundla­nd and Labrador exactly how the billing rates for embedded contractor­s are commercial­ly sensitive?”

In an interview last week, Nalcor CEO Stan Marshall said some of the profession­al services consultant­s working on the project actually have signing authority to approve invoices and payments to other contractor­s.

The Muskrat Falls project is currently behind schedule and billions of dollars over budget.

 ?? TELEGRAM FILE PHOTO ?? Premier Dwight Ball has written an official letter to Nalcor board chairman Brendan Paddick, demanding that informatio­n about payments to consultant­s and contractor­s on the Muskrat Fall project be made public by the Crown corporatio­n.
TELEGRAM FILE PHOTO Premier Dwight Ball has written an official letter to Nalcor board chairman Brendan Paddick, demanding that informatio­n about payments to consultant­s and contractor­s on the Muskrat Fall project be made public by the Crown corporatio­n.

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