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Un-corking the AG's report

Author: Scott Hennig 2005/10/06
Provincial auditor Fred Dunn in his annual review of government finances blew the whistle on some not-so-sober spending. It appears some Commission members and senior management of the Alberta Securities Commission (ASC) were well-having a few drinks on the job. No, not those little cartons of milk on their lunch break, they were dropping hundreds of public dollars on liquor during so-called "hosting and working sessions."

In fact, the auditor found a couple occasions where liquor expenses were greater than food expenses during ASC "hosting sessions." Mr. Dunn notes, at one meal, "eleven bottles of wine were purchased for twelve dinner participants," and at another dinner, "over half of the $2,468 dinner bill... related to liquor purchases."

While I'm sure many of us would enjoy attending such "hosting sessions," it is doubtful our employers would enjoy footing the bill.

The ASC, much like the Alberta Energy and Utilities Board is an industry-funded organization, yet the industry funding is not voluntary; it is taxed from industry members just like any other dedicated tax. Furthermore, the ASC's Commission members are appointed by the provincial cabinet and are ultimately responsible for their actions and their spending to the taxpayers of Alberta.

Most Albertans would expect an employee of an agency that exists solely on public dollars to exercise some common sense when spending those public dollars. Perhaps a quick mental pop-quiz: "is this expense directly related to the work I am doing for the public good "

So how is it those officials at the ASC had such impaired judgement Uh-never mind.

The auditor was kinder than many taxpayers would be with his recommendation that: "the Commission update policies and improve controls over hosting and working session expenses." Taxpayers can only hope the Alberta Finance Minister holds those officials accountable and acts immediately to recover Albertans' lost tax dollars. If those ASC officials who were seemingly very generous with pubic dollars are forced to pay back every cent they misappropriated, perhaps they - and others in the public sector - might give their actions a "sober second thought" next time they use their government issued credit card.

Taxpayers should also hope the Alberta government make it clear to all employees that under no circumstances will expenses for alcohol be approved during "working meals."

Taxpayers understand at certain times employees in the government work long hours and might occasionally work through their meals. On those occasions, it is not outrageous for tax dollars to be used to compensate for a reasonable meal. But what is outrageous is for officials of a government agency to take advantage of taxpayer generosity.

The officials at the ASC had liquor expenses that might make David Dingwall blush (had he any shame), and hopefully are an exception and not the norm. Although it does make one wonder.

Hopefully the good work of the auditor general also gives pause to those who might consider similar expenditures in the future.

Regardless, the Alberta government must not allow the auditor's report to collect dust. Swift and decisive action must be taken to show all public officials this government will not stand for disrespecting the public trust.

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Franco Terrazzano
Federal Director at
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Federation

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