September
17, 2003
Not
Open, Not Transparent, Not Accountable
On
September 10th the government dominated Public Accounts Committee
refused Auditor General Wayne Strelioff's recommendation that
he be appointed the auditor of record for the Vancouver Olympic
Organizing Committee. "Auditor of record" is the
official auditor for an organization. There may be other auditors
involved, but the auditor of record provides the official
opinion on the organization's financial statements. BC's Auditor
General can be appointed as "auditor of record"
for many different organizations.
The attempt
to keep the Auditor General away from the Olympic Committee
is only the most recent example of the Campbell government
attempting to hide from accountability and making it more
difficult to be monitored. It has cut the budget for the Ombudsman,
cut the budget for the Freedom of Information and Protection
of Privacy Commissioner, fired the Children's Commissioner,
fired the Advocate for Children and Youth, fired the Mental
Health Advocate, denied the existence of the Official Opposition
and put over $6 billion in the hands of appointed health authorities
who refuse to provides details on how they are spending the
money or what programs are being cut. Campbell was elected
with 77 of 79 seats in the legislature but no one gave him
the right to shut down all mechanisms for holding his one
man show accountable to the public. When confronted with that
charge, his apologists flippantly respond that the public
will get their chance at the next election. That misses the
point - good government requires constant surveillance, it
needs to report to the public continuously and honestly.
Terry
Wright, VP of Bid Development and Domestic Operations, suggested
to the Public Accounts Committee that the Olympic Organizing
Committee might save money if a private sector auditor was
selected to do the Committee's audit in exchange for being
identified with the Olympic logo. The idea is that reflected
glory could help to reduce an annual audit fee that might
reach $1 million per year for 7 or 8 years! Just think how
willing a private audit firm would be to expose waste and
wrong doing if its compensation depends in part on the reputation
of the Vancouver Olympic Committee, the organization it is
auditing! Perhaps Enron's former auditors will be sent a special
invitation to bid for the work. With thinking like that, how
long can it be before Campbell's toadies tell the Auditor
General to sell pencils on the street corner in order to finance
its scrutiny of government?
Perhaps
the government was really concerned when Strelioff said:
"I
also think that there needs to be examined a number of significant
management and accountability practices, which would be
essential for successful games, such as: the procurement
process in terms of contract management; the controls over
corporate sponsorship; capital project management, as there
are many capital projects that are part of this bid or this
now games production; the marketing plan and program for
the games; and the governance issues to make sure that who
is making decisions is clear, and there's good, strong public
accountability on what's going on."
"Of
course, at the end of the games, we think there needs to
be a post-audit on comparison of what was planned and what
actually happened, and what are the anomalies and lessons
learned. So we do plan to propose and gain support for an
active program of examinations and monitoring as these games
proceed."
If Gordon
Campbell and his 75 clones think that they can prevent the
Auditor General from protecting the public interest, then
they had better listen carefully to Arn van Iersel, the Comptroller
General. The Auditor General acts independently and reports
to the legislature; the Controller General reports to the
Minister of Finance but by nature of his position is viewed
as being virtually independent. Van Iersel advised the committee
that "
notwithstanding what is decided in terms
of the auditor's record, that doesn't prevent Mr. Strelioff
from auditing other aspects of this. The auditor's office
will be the auditor in terms of the provincial funds that
flow to this committee. That includes, as this project develops,
any implications in terms of guarantees."
Of course,
the province is on the hook for unlimited guarantees for any
and all cost overruns. It would appear that government backbenchers
may be able to frustrate the Auditor General but they cannot
stop him. Keep your eye on what they do to his budget in order
to slow him down.
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