Costs mounting for audits in legislative spending scandal

Newfoundland and Labrador's auditor general's office will spend almost $700,000 investigating questionable spending at the house of assembly.

"I think I can complete it for that," said Auditor General John Noseworthy, referring to a two-year budget allocation of $683,000 to cover a series of audits of constituency allowances and other spending done through the house of assembly.

Noseworthy released his latest reports on legislative spending Wednesday, identifying veteran Liberal politician Percy Barrett as having received about $117,000 more than he was entitled through his constituency allowances.

The provincial government asked Noseworthy to widen his original probe of legislative spending in July, with a request to review possible excesses in the use of constituency allowances dating back to 1989, as well as a wide-ranging review of how politicians have spent their allowances.

Those investigations are being done on top of ongoing audits of government departments and agencies. Noseworthy said additional staff had to be hired to get the work done.

In all, eight people have been assigned to the legislature review.

"Four are people from my office, seasoned auditors, who are co-ordinating on my behalf, so the replacements are working on other audits throughout government," Noseworthy told CBC News.

Williams approves of spending

Premier Danny Williams said the cost of Noseworthy's investigation is not a deterrent, and that Noseworthy will be giventhe resources he needs.

"We've given the auditor general carte blanche on these expenses here," Williams said.

Williams told reporters Tuesday that the provincial government will not try to recover funds that the audits say were overspent.

However, he said the courts may one day order money to be repaid to public coffers.

"If charges are laid, then there are criminal remedies," Williams said.

"We want to make sure as a government we don't do anything to interfere with that process or to cast aspersions or to impugn any guilt."

Police investigation launched this summer

The Royal Newfoundland Constabulary opened an investigation after Noseworthy's reports were referred to the force this summer.

Noseworthy has found that five politicians Barrett, fellow Liberal Wally Andersen, Tory Ed Byrne, New Democrat Randy Collins, and former Liberal Jim Walsh were overpaid by $1,586,573 in constituency allowances.

The audits also flagged spending of about $2.8 million to four companies for such things as fridge magnets, pins, gold rings and keepsakes.

Apart from the police investigation, another related review is underway.

Derek Green, chief justice of the trial division of the Newfoundland Supreme Court, is reviewing remuneration for politicians, including a consideration of whether to retain or replace the constituency allowance system.

Green says his review will cost just over$600,000.

Constituency allowances are tax-free payments that members of the house receive to cover office and related expenses.