Premier 'disappointed' with gaps in conflict of interest declarations from Crown corporation directors

A survey of board directors of Crown corporations on P.E.I. found that 44 per cent of board members who respondedfilled out conflict of interest declarations when they joined.

The survey part of this year's auditor general'sreport found that 30 per cent of respondents didn't signa conflict of interest declaration upon joiningand another 26 per cent were unsure if they had or not.

The leader of P.E.I.'s Official Opposition, Peter Bevan-Baker,raised the issue in the legislatureThursday.

"One ofthe startling things revealed in his report is that less than half of the board members of Crown corporations fileda conflict of interest declaration when they joined their respective boards," Peter Bevan-Baker said.

The report also said only 20 per cent of the survey respondents were required to update their conflict of interest forms on an annual basis.

Quoting Auditor GeneralDarren Noonan's report,Bevan-Baker said "poor governance in these organizations could lead to adverse consequences, including financiallosses, real or perceived conflict of interest, as well as loss of confidence in public institutions."

Bevan-Baker asked the premier what he thought of the findings.

"How important do you feel it is for our public institutionsto properly control and mitigate all real or perceivedconflicts of interest?"

King 'disappointed' by report

The survey was sent to 117 individualson P.E.I., and received50 responses from 17 Crown corporations.

Crown corporationsare responsible for providing public services and managing public assets and include organizations like the P.E.I. Liquor Control Commission, Island Waste Management Corporation and Tourism P.E.I.

King said he wasdisappointed to read the auditor general's report. He saidevery individual involved in public service needs to be following the proper protocols.

"All of those who serve government, be they elected, be they employees, or be they appointments to boards of Crown corporations, I believe there's a responsibility they all have to make sure they're conducting business as professionally as possible," King said.

The auditor general's report recommends government should require all Crown corporations to have board members complete conflict of interest declarations annually, something King said he believed would best serve board members.

"We will take the recommendation of the auditor general and we will act upon it quickly, Mr. Speaker, all in the goal of trying to provide the best possible governance for the people of Prince Edward Island," King said.

Governance issues revealed

The report also pointed to other governance issues within Crown corporation boards, specifically when it comes to training and strategic planning.

Half ofrespondents said they felt government should provide more training for board members to help them better understandthe organizations they govern.

More than half of respondents said a documented strategic plan to ensure all members understand the goals of the organization didn't exist.

The report also said 76 per cent of the people who responded indicated their board either didn't have an audit committeewhich would provide oversight of the board's financial reporting and audit processor they weren't sure if there was one.

In the report, the auditor general said Crown corporations work in a wide range of the major industries on P.E.I. and manage more than $1 billion in assets.

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