Questions persist about timing of HVP contract cancellation
Liberals want public inquiry; premier says he is satisifed with AG review
Liberal Leader Dwight Ball believes there are unanswered questions about the timing behind a decision to cancel a controversial paving contract this past March, and says the only way to get the facts is through a public inquiry.
Ball pressed Premier Paul Davis on the issue during Question Period in the House of Assembly on Wednesday, but the premier would not commit to any further investigation.
Ball repeatedly asked why a major contract to pave a section of the Trans-Labrador Highway with Humber Valley Paving had to be cancelled on March 13, the day before the close of nominations for the leadership of the Progressive Conservative Party of Newfoundland and Labrador.
Frank Coleman, the former president and CEO of Humber Valley Paving, had entered the race for the leadership, which at the time had three contestants.
Coleman would end up being acclaimed for the leadership, but withdrew abruptly in June, just weeks before he would have been sworn in as the province's 12th premier.
Cancellation was pushed through
Ball is also wondering why two cabinet ministers, including then Transportation and Works minister Nick McGrath and Kevin O'Brien, Minister of Advanced Education and Skills, contacted the deputy minister in the Department of Transportation and Works within 30 minutes of each other on the day the contract was cancelled.
McGrath later resigned from cabinet following a stinging report by Auditor-General Terry Paddon, but continues to sit as the MHA for Labrador West.
In his report, Paddon said McGrath pushed through the cancellation of the contract without telling senior government officials, including the premier's office, and without thoroughly exploring other options.
O'Brien continues to sit in cabinet, and defended his call to the deputy minister, saying during question periodhe was calling on two other matters relating to issues in his district.
O'Brien said he also had a "curiosity question," since he previously served as Minister of Fire and Emergency Services, and there were serious forest fires in Labrador at the time.
O'Brien said he had heard "rumours" there were issues with the paving contract due to the fires, and asked the deputy minister.
"That was the 30-second conversation with the deputy minister," O'Brien stated.
He added: "I was told that there were issues with the paving contract, the department was working on it, and that was the end of the conversation."
Inquiry is logical step
Ball is not satisfied that the auditor-general's report went far enoughand believes more investigation is needed.
He said a public inquiry is the "next logical step."
Premier Davis refused to commit to an inquiry, prompting Ball to ask: "What happened on that day to cancel that contract? Why was it so important?"
"He came in and had unobstructed access to any records and any individuals that he so chose," said the premier.
The auditor-general made five recommendations.Davis said they are being implemented.
The $19-million contract was awarded to Humber Valley Paving in March 2012 for the paving of 76 kilometres of the highway between Happy Valley-Goose Bay and Churchill Falls.
The company only completed roughly 60 per cent of the work, and was paid just under $12 million.
The province decided not to call in a $9.5-million bond, or insurance, secured by the company in case it was unable to finish the job.
The decision to cancel the contract was a mutual one, with the company saying it was unable to finish the work because of the forest fires and delays in the arrival of equipment and workers.
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