Bureaucrats mismanaged $10M at Indian and Northern Affairs Canada

Hmmm... A previous posting about the amount of money that government expends that is under a different set of rules and accountability policy seems to be evident here.....

http://www.cbc.ca/canada/story/2009/01/12/man-audit.html



CBC News

A forensic audit has found that senior bureaucrats at Indian and Northern Affairs Canada in Winnipeg mismanaged at least $10 million of taxpayer money.

But the audit found no evidence of fraud or criminal wrongdoing by the three unnamed managers, who were suspended with pay during the investigation. They have since returned to work at the federal department, but two of them have been demoted.

"No illegal activities were uncovered as a result of this audit, and we of course would be reporting to the proper authorities, including the RCMP, if that does come to light in the future," said Anne Scotton, the department's chief audit and evaluation executive. "I would characterize it overall as mismanagement in some cases and inappropriate use of authority."

The audit, which went ahead after a preliminary assessment concluded in 2007 there was enough evidence to warrant a full-scale forensic examination, scrutinized three specific cases.

In one, it found Ottawa was short-changed nearly $8 million as part of a transmission deal with Manitoba Hydro intended to bring remote, northern First Nations onto the provincial power grid. Senior managers also failed to maintain proper books and wrote off a "recoverable" $2.7 million in that deal.

In another, the department paid $1.2 million more than it should have in an aboriginal land-claim settlement.

In the third, a senior manager approved a $450,000 deal for an aboriginal building project in Winnipeg even though that amount far exceeded the manager's signing authority.

The audit also uncovered a poisonous work environment run by a "small inner circle of favourites." Federal bureaucrats in the Manitoba office were "pushed to do what they were told, regardless of whether that meshed with public service values or their specific responsibilities," the audit said.

Staff who were critical underwent workplace assessments "to cast doubt on the mental health of individuals and ease them out," the audit found. The department also suffered from high turnover and absenteeism, the report said.

Scotton said all the department's regional offices across the country are undergoing similar audits, but she said there is no evidence to suggest there are systemic problems within the bureaucracy.

Aboriginal leader criticizes department

One Manitoba aboriginal leader said the department is not being held to the same standards of accountability and transparency it demands of First Nations.

"It is Indian money, it is our money, and we'd like to know how it's being spent at the departmental level," said Morris Swan Shannacappo, grand chief of the Portage la Prairie-based Southern Chiefs' Organization Inc.

Swan Shannacappo, who was upset the department didn't brief aboriginal leaders when they released the report on Monday, said he hopes it will follow the missing money and find out whether any government employees benefited, either directly or indirectly.

"We have a forensic accounting audit going on now, and when we find out whether, if, and how much we need to recover, then we'll be pursuing that," Scotton said.

With files from the Canadian Press