Story Tools: PRINT | Text Size: S M L XL | REPORT TYPO | SEND YOUR FEEDBACK

In Depth

Auditor General

Auditor General's Report

October 30, 2007

Auditor General Sheila Fraser reads her opening statement during a news conference before tabling her report in the House of Commons in May 2006. (Jonathan Hayward/Canadian Press)

The position of auditor general, in its current role as a watchdog holding the government accountable for its spending, began in 1977 with the Auditor General Act. That law established the auditor general as an official who not only made sure the government's books were accurate, but also weighed in on how the government's policies are implemented.

The governor general, on the advice of Parliament, appoints the auditor general for a 10-year term, so the position is independent of the government of the day.

In 1994, the law was changed to allow the auditor general to publish up to four reports a year, giving the position a stronger voice.

Over the years, the auditor general's report has revealed government mismanagement, boondoggles, excess and financial messes.


2007

October:

  • Potentially dangerous people may have slipped into Canada because of weaknesses at the country's border agency.
  • The government has been lax in allowing secrets to get into the hands of private contractors who do not have proper security clearance.

» Auditor General's Report October 2007


2006

Giovanni Interdonato checks out the scope on a hunting rifle in this photo from 2002. The Conservative government has tabled a bill that would kill the registry for long guns. (Kevin Frayer/Canadian Press)
May:
  • The former Liberal government misinformed Parliament about millions of dollars in expenses incurred by the gun registry.
  • Undisputed taxes owing totalled more than $18 billion as of March 2005, but the Canada Revenue Agency "is not collecting the data it needs to understand what makes up the tax debt and why it is growing."


  • » Auditor General's Report May 2006

Ron Stewart in his office in Ottawa, Nov. 29, 1977, after being named the new correctional investigator for the solicitor-general of Canada. He retired in 2003. (Fred Chartrand/Canadian Press)
November:
  • Ron Stewart, a former CFL football star and former ombudsman for federal prison inmates, is alleged to have often skipped work and collected $325,000 in improper or questionable salary, vacation pay and expenses during a six-year period of his 26 years in office.
  • A sampling of seven of the 88 information technology projects launched since 2003, worth $7.1 billion, found rampant mismanagement. Many were far over budget and long past deadline.
  • Treaty negotiations with First Nations in British Columbia badly bogged down, with not a single treaty signed as costs skyrocketed to $426 million since 1993.


  • » Auditor General's Report November 2006

2005

February:
2004

Former head of Canada Post André Ouellet (Canadian Press)
    February:
  • More details of waste in the sponsorship program and at five Crown corporations: the RCMP, Via Rail, Canada Post, the Business Development Bank of Canada and the Old Port of Montreal.
  • The surplus of the employment insurance system reaches a record $43.8 billion. Most people calling EI centres for assistance get busy signals.


  • » Auditor General's Report February 2004

    March:
  • Fraser focuses on security and finds government departments and agencies can't efficiently share security information. As well, she finds that Transport Canada has no access to RCMP criminal intelligence that could be used when screening airport employees.


  • » Auditor General's Report March 2004

    November:
  • The employment insurance surplus has ballooned to $46 billion. Fraser says the surplus is more than triple the maximum reserve that the chief actuary of Human Resources Development Canada considered sufficient in 2001.


  • » Auditor General's Report November 2004


2003
Jean Brault, former president of Groupaction. (CP file photo)
    February:
  • The auditor general calls for an RCMP investigation of $1.6 million worth of contracts to the Groupaction ad agency, saying senior Public Works Department officials "broke just about every rule in the book" handing out the contracts.

    September:
  • The auditor general asks for an RCMP investigation into the "reign of terror" of former privacy commissioner George Radwanski, alleging overspending and cronyism in the department.
But the office of the auditor general hasn't been without controversy itself.

In early 1997, the auditor general's office hired new auditors after cutting its staff by 60 people by buying them out and offering them early retirement. The auditor general had criticized other government departments for doing the same thing.

The move prompted some critics of the auditor general to ask, "Who watches the watchers?"


2002
The report
    October:
  • The federal government lacks an adequate system for tracking or monitoring health care spending by the provinces
  • Ottawa has issued more social insurance numbers than there are adults in Canada; there are about 5 million extra SINs

    December:
  • Sheila Fraser targets Ottawa's gun registry program, saying not only is the program hundreds of millions of dollars over budget, but the government kept increased costs from Parliament. Instead of the $2-million net cost predicted in 1995, the price tag on the registry is now expected to reach $1 billion by 2004.



2001
  • The federal Employment Insurance plan has a surplus of $36 billion in the previous year, even though its own actuary says it only needs $15 billion
  • The military is crippled by underfunding; mechanics had to borrow batteries from the Spanish air force to keep its CF-18 jets in the air over the former Yugoslavia
  • A home heating grants plan costing $1.4 billion put only $250 million in the hands of those who deserved it; other cheques go to high-income earners, pensioners and 7,500 dead people

2000
  • Human Resources and Development Canada mismanages job-grants programs and the government continues to understate the problem
  • CIDA grants a $6.3-million contract to a company headed by a friend of Prime Minister Jean Chrétien

1999
  • Health Canada isn't equipped to handle outbreaks of deadly viruses coming into the country
  • A widespread kickback scheme involving military personnel and gas stations is revealed
  • Ottawa has violated its own rules in awarding a military training contract to Bombardier

1998
  • The downsizing of 30,000 civil servants cost taxpayers $1.8 billion by March 1997 and could cost as much as $3.2 billion
  • Fraud involving the SIN system is costing the government at least $33 million a year; there are over 300,000 active social insurance numbers for people over 100 years old, most of whom have died

1997
  • Revenue Canada breaks the law by awarding a duty-free shop licence to a foreign company
  • Tax evasion on cigarettes, alcohol, gasoline and jewellery is costing the government $500 million a year
  • A $500-million health program for native Canadians is contributing to drug abuse among the people it's supposed to help

1996
  • Two family trusts totalling $2 billion are moved tax-free from Canada to the U.S. because of secretive tax rulings

1990
  • CIDA financed an inefficient Pakistani coal-washing plant to the tune of $2.3 million, without first completing a feasibility study

1988
  • The Canadian International Development Agency (CIDA) has inadequate control over some of its spending
  • There's no way of knowing if federal money for native bands is being used for its intended purpose
  • The military doesn't own enough ammunition to fight a war
1986
  • The CBC's financial reports can not be verified because its accounting system has lost track of $57 million

1985
  • The Canadian High Commission buys memberships in a Hong Kong marina club at a cost of $773,500

Go to the Top

Story Tools: PRINT | Text Size: S M L XL | REPORT TYPO | SEND YOUR FEEDBACK

World »

Karzai, Musharraf target Taliban
The leaders of Afghanistan and Pakistan have begun a two-day meeting to talk about co-operating in the fight against insurgents based in the lawless border area between the two countries.
December 26, 2007 | 4:16 PM EST
Couple arrested in deaths of 6 people in rural Washington
A man and a woman have been arrested in connection with the killing of six people believed to be family members at a rural property east of Seattle.
December 27, 2007 | 12:19 AM EST
French aid workers convicted of taking Chadian children
Six French aid workers have been sentenced to eight years' forced labour by a court in Chad for trying to abduct children from the African country.
December 26, 2007 | 2:31 PM EST
more »

Canada »

Canadians flock to Boxing Day bargains
Millions of Canadinas took part in the Boxing Day bonanza on Wednesday, although shopping malls may have been less crammed with bargain hunters this year.
December 26, 2007 | 11:32 AM EST
Dozens of carcasses discovered at Quebec quarry
Police and wildlife officers are investigating the discovery of dozens of pig, fox and coyote carcasses at a Quebec gravel quarry.
December 26, 2007 | 6:32 PM EST
Homolka's prison boyfriend could be freed in '08
A convicted killer, said to have had a relationship with Karla Homolka while the two were behind bars, could be released from a Quebec prison early in 2008.
December 26, 2007 | 8:20 PM EST
more »

Health »

Honey-drenched dressings touted as the bee's knees for wounds
Amid growing concern over drug-resistant superbugs and nonhealing wounds that endanger diabetes patients, nature's original antibiotic ? honey ? is making a comeback.
December 26, 2007 | 12:30 PM EST
Boxing Day dips wash away holiday excess, Europeans insist
Across Europe, people celebrated Boxing Day by diving into rivers, lakes and even oceans that challenged the threshold of humans' temperature tolerance.
December 26, 2007 | 3:16 PM EST
Woman's death marks 16th bird flu fatality in Egypt
A 25-year-old Egyptian woman has died of bird flu after she apparently contracted the disease from domestic fowl, a health official said Wednesday.
December 26, 2007 | 4:26 PM EST
more »

Arts & Entertainment»

Canadian jazz great Oscar Peterson dies
The jazz odyssey is over for Oscar Peterson: the Canadian known globally as one of the most spectacularly talented musicians ever to play jazz piano has died at age 82.
December 24, 2007 | 5:17 PM EST
Tributes pour in for 'giant in music' Peterson
Tributes are pouring in for Canadian jazz musician Oscar Peterson, who died Sunday at age 82.
December 26, 2007 | 2:49 PM EST
Broadway, Hollywood choreographer Michael Kidd dies
American choreographer Michael Kidd, who created dance for the stage musical Finian's Rainbow and the movie Seven Brides for Seven Brothers, has died.
December 26, 2007 | 11:41 AM EST
more »

Technology & Science »

Weather odds could become the norm
As man-made climate change continues, the world will experience more extreme weather, bursts of heat, torrential rain and prolonged drought, scientists say.
December 26, 2007 | 2:17 PM EST
Yellowknife looks to old mine for geothermal energy
The N.W.T. capital will soon begin studying what could become Canada's first large-scale geothermal heat plant. Experts say heat from the defunct Con gold mine could supply enough power to serve half of the city's residents.
December 26, 2007 | 12:18 PM EST
Toyota announces plan to sell 9.85 million vehicles in 2008
In a neck-and-neck race that could dethrone General Motors as the world's top automaker, Toyota said it plans to sell 9.85 million vehicles globally in 2008.
December 26, 2007 | 12:10 PM EST
more »

Money »

Canadians flock to Boxing Day bargains
Millions of Canadinas took part in the Boxing Day bonanza on Wednesday, although shopping malls may have been less crammed with bargain hunters this year.
December 26, 2007 | 11:32 AM EST
U.S. house prices drop by a record 6.7 per cent
House prices in the United States fell in October for the 10th consecutive month, posting their largest monthly drop since early 1991, a widely watched index showed Wednesday.
December 26, 2007 | 4:13 PM EST
Apple Inc. shares reach $200 on core strength of IPod
Shares of Apple Inc. hit the $200 mark for the first time Wednesday as investor confidence in the company continued rising near the end of what has been a strong year for the IPod and computer maker.
December 26, 2007 | 3:30 PM EST
more »

Consumer Life »

Canadians flock to Boxing Day bargains
Millions of Canadinas took part in the Boxing Day bonanza on Wednesday, although shopping malls may have been less crammed with bargain hunters this year.
December 26, 2007 | 11:32 AM EST
Boxing Day purchases in cars easy prey for thieves: police
Vancouver police are advising Boxing Day shoppers not to leave newly-bought items in parked cars because they're easy prey for thieves.
December 26, 2007 | 9:41 AM EST
U.S. house prices drop by a record 6.7 per cent
House prices in the United States fell in October for the 10th consecutive month, posting their largest monthly drop since early 1991, a widely watched index showed Wednesday.
December 26, 2007 | 4:13 PM EST
more »

Sports »

Scores: CFL MLB MLS

Leafs lose Islander game, Toskala
Mike Comrie scored with nine seconds left in overtime as the New York Islanders topped the Toronto Maple Leafs 4-3 in a game where both clubs resorted to using their backup goaltenders.
December 27, 2007 | 12:23 AM EST
Senators cool off surging Sabres
Dany Heatley notched three points ? including an empty-net goal ? for the Ottawa Senators as the Eastern Conference leaders snapped the Buffalo Sabres' six-game winning streak with a 5-3 road win Wednesday night.
December 26, 2007 | 11:49 PM EST
Tavares leads Canada
John Tavares scored twice in his world junior championship debut and goaltender Jonathan Bernier earned the shutout as Canada opened the tournament Wednesday with a 3-0 win over host Czech Republic.
December 26, 2007 | 5:56 PM EST
more »