Trent-severn Waterway manager negligent with public funds: Report

Mismanagement in awarding of contracts over a four-year period ending in 2001

A Parks Canada investigation has found negligence and gross mismanagement of public funds by a former Trent-Severn Waterway employee in the awarding of contracts over a four-year period ending in 2001.

The ex-employee contravened the Financial Administration Act and government contracting regulations “by failing to have properly exercised delegated financial authorities and by failing to solicit bids for the provisions of goods and services for which the value exceeded $25,000,” states a report on the investigation, dated May 2013 and posted on the Parks Canada website.

The federal agency refused a request for a telephone interview and refused to provide details about the investigation, including the number and total value of the contracts, the ex-manager’s position and the circumstances of that person’s depar- ture from the waterway.

“In order to maintain the integrity and confidentiality of the process and to protect the identity of the person(s) involved, Parks Canada cannot provide additional information about the investigation,” a media relations officer stated in an email.

“The respondent demon- strated gross mismanagement,” the report states, “by institutionalizing inappropriate contracting practices, including contract splitting and inappropriate use of sole source contracts, in the area under his responsibility, by omitting to implement appropriate contracting practices communicated by internal commu- nications and training offered by the Parks Canada agency and by demonstrating clear negligence in failing to report the challenges surrounding contracting practices in his area of responsibility and in failing to request the necessary support.”

The ex-manager did not benefit financially, the report states.

“The investigation showed, rather, a manager who has exceeded his financial authority and failed to ensure sound stewardship of the resources under his responsibility” the report states.

“The respondent showed misuse of public funds by systematically failing to follow Treasury Board contracting policies and Parks Canada standard operating procedure, by misusing a low dollar value procurement instrument to circumvent existing financial procedures and policies, by omitting to ensure that contracting files were duly completed by his staff and by giving preferential treatment to two companies,” the report states.

“The respondent directed his staff to commit wrongdoing by asking them to do contract splitting,” it states.

The investigation was conducted after “a disclosure was received” that the manager “breached policy and regulations,” the report states.

The case resulted in more training in contract procedure for managers, reviews of managers’ responsibilities, improved monitoring and oversight, and the implementation of standardized processes, the report states.

Recommendations in the report include “an in-depth review of administrative processes and practices and strengthening of the ethical culture of the business unit concerned,” the report states. “To ensure they produce tangible, sustainable results, these recommendations will be implemented over a specific period of time.”