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Taxpayers call for action after auditor general flags mass fraud

Author: Devin Drover 2026/03/02

ST. JOHN’S, NL: The Canadian Taxpayers Federation is calling on the Wakeham government to take immediate action after the auditor general flagged hundreds of fraud-related incidents and weaknesses in government financial controls.

“Taxpayers expect the government to guard their money like it’s their own,” said Devin Drover, CTF Atlantic Director and General Counsel. “Instead, the auditor general is reporting problems everywhere in the government. That’s a flashing warning sign that politicians aren’t watching the store.”

The auditor general’s report points to hundreds of reported fraud-related cases across government, many involving cheque fraud and gaps in internal controls. While some incidents were attempts rather than successful fraud, the findings show systemic weaknesses.

Every Newfoundlander and Labradorian’s per capita share of the provincial debt is more than $35,000, one of the highest in the country. Debt interest payments alone are projected at more than $1.2 billion this year. That’s about $2,200 for every person in the province.

“Politicians can’t keep coming back to taxpayers for more while failing to control waste and fraud,” Drover said. “People are already stretched thin by high taxes and rising costs. Before politicians spend another dollar, they need to prove they can protect the dollars they already take.”

The CTF is calling on the province to fully investigate every case identified in the report, strengthen fraud prevention systems across all departments, recover any lost funds and conduct a comprehensive review of government spending to eliminate waste and focus on paying down debt.

“Newfoundlanders and Labradorians are tightening their belts every single day, and they expect politicians to do the same.” Drover said. “This report should be a wake-up call. Stop the excuses, stop the leaks in the system and start respecting taxpayer money.”


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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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