Calls for transparency after report shows N.S. spent $1.38B not authorized prior

The Nova Scotia Federation of Labour is raising concerns over the findings in yesterday’s auditor general (AG) report, saying this calls into question how the province spends taxpayer money.

This comes after Nova Scotia Auditor General Kim Adair released a report yesterday which showed the government spent $1.38 billion in the 2023-24 fiscal year that wasn’t first authorized by the legislature.

In response, the federation’s president Danny Cavanagh said the report highlights significant issues with transparency and accountability in how the provincial government manages public funds.

Cavanagh says he’s especially concerned over the province’s heavy reliance on alternative procurement, adding that awarding contracts without a complete and open bidding process is a slippery slope

“This report also raises serious questions about how our government is spending taxpayers’ money and we need to know that every dollar is being used wisely and in the best interests of Nova Scotians,” says Cavanagh.

The report provided three examples of health care transactions that didn’t go through the government’s standard procurement process and were either missing from data provided to the auditor’s office or were not publicly disclosed until the auditor flagged them as missing.

They include a five-year $67.5 million contract to Shannex to operate the transitional-care facility in West Bedford, N.S.; a $49.6-million contract with Think Research YourHealthNS and urgent virtual care; and a $24.8-million consulting contract with Ernst & Young.

For the third consecutive year, Adair recommended changes to the province’s Finance Act that would give more oversight authority to the legislature, something the government has refused to do. Nova Scotia is an outlier to the rest of Canada.

Cavanagh says his organization is calling on the province to implement the AG’s recommendations, review procurement practices, and invest in long-term solutions to address the health care crisis, including fair wages and working conditions.

With files from The Canadian Press.