Outside auditor to investigate city contracts

An independent auditor has been chosen by the City of Calgary to review its contract procedures.

Earlier this year, the city auditor identified problems in the city's procurement policies, including a large number of single-source contracts and price increases after contracts were awarded.

Questions were raised about possible fraud, but an internal review done by the city found no wrongdoing.

The city's chief financial officer, Eric Sawyer, said the audit is designed to deal with any lingering concerns.

"Its real purpose is to basically once and for all, either confirm or identify or whatever the issue of potential impropriety in our procurement practices," said Sawyer.

Auditor will examine files going back five years

In May, then-city auditor Tracy McTaggart tabled an audit on the city's procurement practices that found problems such as missing documentation in how the city awarded contracts for projects and suppliers between 2005 and 2009.

Some projects awarded without any competition resulted in major cost overruns, the audit found.

At an audit committee meeting, McTaggart said she could "pretty much guarantee there is some procurement fraud going on."

While she later clarified that her audit found no evidence of fraud, city manager Owen Tobert discredited McTaggart's report in front of city council, saying the audit was incomplete and contained several key errors.

McTaggart was later dismissed.

After the city took bids for an external review of the matter, Deloitte & Touche LLP was selected to examine city files dating back five years.

Deloitte's was one of seven submissions provided in response to the city's request for proposals.

The audit will start Sept. 27, subject to a 10-day notification period, and is to be completed for city council by February.

The cost of the audit could be as high $1 million.