The following is the text of a May 18 report submitted by Nova Scotia Auditor General Jacques Lapointe to House Speaker Charlie Parker.
Dear Mr. Parker:
I have completed my forensic investigation into the expense claims of certain current and former members of the Nova Scotia House of Assembly. Please accept this letter as my final report for tabling in the House Assembly in accordance with Section 9A(1) of the Auditor General Act.
In November 2009 I completed an audit of members’ constituency and other expenses covering the time period from July 2006 to June 2009. The results of the audit were reported in my February 2010 report released on February 3, 2010.
The audit procedures I performed at that time were sufficient to allow me to provide an opinion on whether payments to members of the House of Assembly for constituency and other expenses were reasonable, adequately supported, and in accordance with legislation, regulations and guidelines. My audit identified serious weaknesses in the funding system including instances of inappropriate and excessive expenditures claimed by and reimbursed to members. However, at the time of the release of my report, I saw no evidence of illegalities, which would have warranted further investigation by my office.
Following the release of my report, I received new information from a number of sources, which indicated possible expense claim irregularities by certain members. Given the nature and sources of the information, I decided that a forensic investigation should be undertaken.
I conducted my forensic investigation from February to May 2010. The focus of the investigation was primarily on specific transactions by certain members and it was not, nor was it intended to be, a forensic investigation covering all members. Certain limited procedures, however, were conducted on some transactions affecting all or most members.
My Office conducted investigative procedures as I deemed necessary, including numerous interviews with former and current members’ employees and other payment recipients; review of all relevant documents obtained; confirmation of some amounts paid; discussions with legal counsel; and re-examination of certain detailed documentation supporting Members’ expense claims initially reviewed for the audit reported in February 2010.
Based on the results of my investigation, I believe four former members and one current member of the House of Assembly may have committed illegal acts related to their constituency expense claims. Due to the serious nature of my findings, I determined it would not be appropriate for my office to continue to do additional work in regard to these specific individuals. Accordingly, we referred our investigation files for these five individuals to the RCMP for criminal investigation.
Due to the sensitive nature of this investigation it would not be appropriate for me to release publically the names and related details of the members’ files passed on to the RCMP. Release of such information might hamper the criminal investigations.
As of the date of this report, no further evidence related to any other member has come to my attention, which would warrant further investigation by my office.
Respectively submitted,
Jacques Lapointe
