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TBS excuses themselves from Audit – then gets caught costing the taxpayers over $35 million!

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I came across this TBS document and I would like your thoughts. In the ROD (record of decision below), the Treasury Board Secretariat excuses themselves from participating in a Governmental Audit (Apr 2010).

At that time, the TBS was in court for BID RIGGING the Federal Relocation Contract, which ended up costing the taxpayers $35 Million. The following is an excerpt from the news.

“Justice Peter Annis delivered a withering decision on what he called the government’s “misconduct” in the bidding process and later during litigation. He called the government’s handling of the deal “reprehensible”, “outrageous” and “shocking. ” He also urged an investigation to determine how far knowledge about the misconduct went up the “governmental hierarchy.”

Annis awarded Envoy $30 million to cover lost profits, plus costs and interest, for two contracts — one for relocating the military and the other for moving RCMP and bureaucrats to new postings.

In a separate ruling on costs, he increased the award to cover Envoy’s lost profits and awarded full costs and interest totalling nearly $10 million to send a message about the court’s disapproval of government’s behaviour”.

This same department within the TBS was also engaged in systematically denying military families their relocation entitlements. Some in excess of $100,000.

My question. What good are audits if the agencies (such as TBS) can OPT OUT?

“Government of Canada Audit Committee (GCAC}
Stream 1- Treasury Board Secretariat
April 27, 2010
Record of Decision


Item 6: Update of Treasury Board Secretariat’s Strategic Review
Tabled for information
Presenter: Michelle d’ Auray, Secretary of the Treasury Board
The Secretary provided an overview of the strategic review process that the Secretariat is undergoing as a department. She noted that given the department’s unique position, the Secretariat built in mechanisms to ensure sufficient challenge.
Specifically, since the area under the purview of the Chief Human Resources Officer has recently undergone strategic review and therefore excluded from the Secretariat’s review, she will undertake the challenge function. The Secretary also noted that external advisors to the department provide additional challenge. The Committee was informed of the timing for completing the strategic review.

In-Camera Meetings:
In-camera meetings were held individually with the Chief Financial Officer and the Chief Audit Executive. In addition, the Committee met with the President of the Treasury Board”.


Written by Major Marcus Brauer

February 26, 2015 at 22:03

Posted in Uncategorized

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  1. […] Source: TBS excuses themselves from Audit – then gets caught costing the taxpayers over $35 million! […]


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