Taxpayers deserve answers about GTH land deal

Simple questions remain, including how much money was wasted?

One thing is clear about the Global Transportation Hub land deal.

“Mistakes were made,” said Premier Brad Wall when responding to the provincial auditor’s report in June.

Mistakes indeed. The GTH paid $21.4 million for land, despite government appraisals establishing much lower land values. That’s a multimillion-dollar mistake.

But big questions still loom. Exactly how much money did this mistake cost taxpayers? Who is specifically responsible? And why did the GTH make this deal rather than letting the experienced land-buyers at the Ministry of Highways and Infrastructure handle it?

The provincial auditor’s 64-page report provides important information. Geoff Leo’s extensive investigative report for the CBC adds important new points. Here at the Canadian Taxpayers Federation, we’ve submitted dozens of freedom-ofinformation requests regarding the GTH.

Yet, those simple questions remain: how much money was wasted; who’s responsible; and why didn’t the GTH let Highways buy the land?

For most of us, telling the boss about lost money prompts an obvious question: how much money? But we don’t have that answer in this situation. The provincial auditor audited the processes used to make the purchase, found gaping gaps in those processes, but didn’t account for the lost money.

Here’s what we know. Mere months before the purchase, Highways appraised the land at $6.7 million and the GTH appraised it at $12 million, but the government ultimately paid $21.4 million. So this mistake likely cost between $9.4 and $14.7 million, but a guess isn’t good enough.

How is it possible that the purchase price is so wildly different from government appraisals and how is it possible the government appraisals are so different from each other? How did two businesspeople make millions due to these government mistakes? The government owes taxpayers a precise answer: how much money was wasted?

Then there’s the question of responsibility. Premier Wall has taken responsibility in a general sense, which is good, but not good enough. Accountability means holding specific people responsible for specific mistakes. There’s no evidence that anyone has been reprimanded in any way and it’s important for everyone to see concrete consequences for massive waste.

Highways didn’t get a chance to make the purchase so it’s hard to place a lot of the responsibility there. It’s tempting to blame the GTH, but, according to documents obtained through freedom-of-information requests, its management recommended against the purchase and didn’t even know who to make the cheque out to when the deal was done.

The responsibility for one central question almost certainly rests at the highest levels.

Why did the GTH execute this purchase rather than Highways? Highways routinely appraises and acquires land. Much of this land ultimately went to Highways. The GTH didn’t have the expertise, policy tools or direct need for this land. In fact, previous GTH land purchases were handled by Highways. Sidelining Highways and running the deal through the GTH makes about as much sense as getting a plumber to make a cake for a bakers’ convention.

The provincial auditor’s report makes it clear this decision was discussed at the cabinet table. Ministerial responsibility dictates that some blame is directed to Bill Boyd, but Premier Wall allowed him to leave cabinet with nothing but praise. Further, there is no clarity as to whether Boyd should bear all of the blame or whether he was the victim of bad advice.

The provincial auditor’s first audit unearthed serious issues. A second audit is needed to get answers on the remaining questions.

Until then, a dark cloud will hang over this land purchase.