Official opposition questions secrecy of e-gaming project

P.E.I.'s official Opposition asked repeated questions in Friday's sitting of the Legislature about the government's failed attempt to turn the Island into a hub for e-gaming.

Economic Development Critic Matthew MacKay says there is still confusion surrounding a $950,000 government loan to look at setting up online gambling regulation on P.E.I.

"What's confusing to a lot of Islanders was the secrecy and contradictions around this project," said MacKay. "One minister telling Islanders that there was no taxpayer money in the project and the other saying that close to a million dollars was in play. Why all the secrecy and confusion?"

Economic Development Minister Heath MacDonald says an investigation into e-gaming by the Auditor General Jane MacAdam will be the official word on the issue.

Premier Wade MacLaughlan asked MacAdam to look into the province's failed e-gaming initiative in March.

Why all the secrecy and confusion?- Matt MacKay

MacLauchlan said at that time MacAdam has been asked to undertake a thorough review of the file and to report back with findings of fact and with recommendations for reform or specific actions.

"The Auditor General has been asked to consider all aspects of government's dealings with Simplex, Capital Market Technologies and related companies in relation to e-gaming and financial services, including the conduct of current or former elected officials and staff," said the statement.

MacDonald would offer no further comment until the investigation is done.

Lawsuit ongoing

Capital Markets Technologies has filed a $25 million lawsuit against the province. The company ismaking a number of claimsincluding that it was involved in discussions on e-gaming with the P.E.I. governmentand thatgovernment didn't act in good faith regarding a memorandum of understanding to develop a financial services centre.

The provincial governmenthas denied the claims, as haveP.E.I. businessmenPaul Jenkins andGarthJenkins, also named in the lawsuit.

Justice Gordon Campbell will rule on a series of motions argued at the hearing including requesting CMT to make asecurity deposit in the event the case goes to trial.