Liberal Party of Newfoundland and Labrador
 
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News Release
Office of the Official Opposition

   

 

How deep is the rot at the Bull Arm Site Corporation?

December 12, 2006

Kelvin Parsons, Opposition Natural Resources Critic and MHA for the District of Burgeo-Lapoile, says today’s revelation that contracts were awarded verbally by the Bull Arm Site Corporation (BASC), without documentation, raises more questions.

Today’s announcement by the minister is the most recent statement concerning the inappropriate awarding of contracts at the BASC. Last week, after questioning by the Opposition in the House of Assembly, Joan Cleary was fired as CEO of the BASC for breaking the guidelines of the Public Tendering Act, and awarding contracts to political friends of the PC Party.

"The secrets of the BASC, the feeding trough for political cronies of the PC Government, are slowly coming forward," said Mr. Parsons. "The more questions we ask on the inappropriate procedures that have taken place at this site, the more we find out about how government policies and laws were broken. I am certain that we have only scratched the surface of the rot that has taken place in management practices at the corporation.

"The verbal awarding of $70,000 contracts at the BASC raises many concerns. How deep does this abuse run? We have already uncovered two instances of abuse regarding the Public Tendering Act at the site, how many more similar contracts exist? I have asked the minister to release all information related to contracts that have been awarded since Ms. Cleary was appointed to her position by the premier. For the sake of openness and accountability, I hope all of these contracts weren’t verbal in nature.

"This government has a theme of looking after its political friends. Whether it be appointments by the premier, $15 million contracts, or the circumvention of the Public Tendering Act, it is obvious that friends and supporters get special treatment. Unless Minister Dunderdale presents the public with a full accounting of the procedures used to award contracts at the Bull Arm site over the past two years, there will always be a cloud hanging over the site and the potential for lawsuits in the future. It is unfortunate that the minister was so derelict in her duties and such abuse could take place under her nose. I only hope this incompetence does not end up costing the people of this province millions of dollars in legal costs."

 

Media Contact:
Darrell Mercer
Director of Communications
Office of the Official Opposition
709-729-6151 or 709-687-0477