I cited a column by Greg Weston last week which spoke about billions of taxpayer dollars stashed away in Liberal handouts to “foundations” that they set up over the past few years.
It certainly alarmed me. This morning, Conservative leader Stephen Harper opened question period with a question on this topic as the Auditor-General has now released a report on it.
Billions of tax dollars in foundations out of parliamentary scrutiny: auditor
OTTAWA (CP) – The Liberal government has channelled billions of taxpayer dollars away from public scrutiny – and from controversial budget surpluses – into arms-length foundations that are still sitting on most of their cash, says Auditor General Sheila Fraser.
More than $9 billion that would otherwise swell federal surpluses has been invested in agencies like the Canada Millennium Scholarship Foundation, which don’t face adequate oversight despite previous complaints, the auditor general said in her latest report Tuesday.
The lack of scrutiny suggests they could be open to abuse.
In fact, Ottawa is so far removed from the foundations that cabinet can’t alter the terms of the programs, even if the social climate and public need changes.
“Given the significant sums involved, I am concerned about the lack of adequate accountability to Parliament,” Fraser wrote.
“Important gaps remain in the external audit regime and ministerial oversight.”
Her review is especially timely, coming just a week before the next federal budget which some say could include plans to sink billions more into new foundations, perhaps to fund a national daycare program.
Fraser’s review, looking back over eight years, found that only a small portion of foundations funding has been spent. Fully $7.7 billion is still sitting in accounts, building up interest. […]
A different but equally alarming take from Reuters news service:
Ottawa Rapped for Stashing Billions in Foundations
OTTAWA (Reuters) – An official report on Tuesday rapped Ottawa for parking billions of dollars in secretive foundations, dealing another blow to a minority Liberal government already under fire for mismanaging public funds.
Auditor-General Sheila Fraser said she was concerned that Parliament and government had little say over the running of the largely independent foundations, which have received C$9 billion ($7.3 billion) since 1997. More than C$7.7 billion of this has yet to be spent.
Fraser’s regular reports have immense political weight. A year ago she plunged the government into a protracted crisis by revealing that C$100 million in public funds had been funneled to Liberal-friendly advertising firms.
Public anger over the scandal cost Liberal Prime Minister Paul Martin his parliamentary majority in an election last June and opposition parties are likely to seize on the latest report in a bid to demonstrate the Liberals cannot be trusted.
The 15 foundations are arm’s-length corporations that the Liberals set up in the years after 1997 to provide long-term funding for university scholarships and to boost research as well as develop technologies to help the environment.
[…] “We believe that paying C$9 billion in advance of need could limit the flexibility of future parliaments and governments to respond to changing circumstances and priorities,” she said.
Fraser also said her office should be put in charge of auditing the foundations. The government reacted by saying it disagreed with Fraser’s conclusions and felt there was already an adequate amount of oversight. […]
What is going on here?
PTBC was founded by Mr. Johannesen in 2000.
Contact Mr. Johannesen about this article using this form. Please refer to article's title.
FOLLOW @JoelJohannesen ON X!
- Proud To Be Canadian. But Maybe Not. - Tuesday December 17, 2024 at 2:07 pm
- Say something. - Friday October 25, 2024 at 6:03 pm
- Keep going, or veer right - Monday August 26, 2024 at 4:30 pm
