Mr. Speaker, I have listened to the debate today and have attended the public accounts committee on a couple of occasions to listen to testimony and to observe the committee in discharging its responsibilities on this important matter. I did that because, having been on the government operations and estimates committee, I was intimately involved in the George Radwanski case, the former privacy commissioner, who subsequently was found by this House to be in contempt of Parliament. There is no doubt that there were two different approaches as to how to proceed on these matters.
I want to add my contribution to this debate from a perspective of my background and the fact that I am also an elected person and feel very badly whenever there is a problem in terms of the mismanagement, misuse or waste of taxpayer money.
I am a chartered accountant by profession and I spent a number of years with Price Waterhouse in the auditing business. I was also in corporate life for some 23 years and for about 5 or 6 of those years I had responsibility for the internal audit function. I am fairly familiar with the scope of the work that is done within those functions.
I simply want to bring to the attention of the House that even within the chartered accounting profession, some years ago the audit opinion, which auditors give, was changed substantively from when I first wrote my exams and its history of what the audit opinion said. The substance of the change has to do with the fact that the financial statements are the responsibility, the property and the representation of management, and that the auditors do not take responsibility for anything they may not have found, such as fraud, mismanagement, or whatever. The auditors' job is not to detect, but should they detect, they must report in a fashion that would result in corrective action.
However the onus and the responsibility to detect is not the auditors. They are not opining on the statements on anything other than what has come to their attention. It really is the management. With regard to the sponsorship program, I think management is at the centre of the issue. How were the funds managed?
I can also comment on this whole matter from the standpoint that in September 2000 I was appointed the parliamentary secretary to the then public works minister, Alfonso Gagliano, and subsequently, his successor, the member for Glengarry—Prescott—Russell, and I carried on until January 2003 with the current finance minister who was then in that portfolio.
I want to comment on the actions that were taken by the current finance minister because I think members and the public should know that the government did not wait until there was an Auditor General's report to lay out matters. There was an internal audit that came forward in the year 2000. In fact, the internal audit report was published and available on the government website. All the findings of the internal audit, in which they identified management control problems and other aspects that had to be addressed, were addressed.
The current finance minister, who was then the minister of Public Works and Government Services, took charge. First, he froze the program until he could get a handle on the situation. He then came to the House and said that there were three particular items. He made the representation to the House that if there were deficiencies in the management controls surrounding these matters they would be corrected. As a consequence of the internal audit and the work that was done, changes were made starting right back in 2000.
The then public works minister said that if there were any allegations of wrongdoing they would be referred to the proper authorities for investigation, and indeed there were. I was parliamentary secretary at the time and I think there were seven referrals to the RCMP for investigation. Charges have been laid pursuant to those investigations that started back then when that minister made the representations and the commitment to the House.
He finally said that if there were any overpayments or improper payments for work not done, that we would take every possible step to recover those funds. This is responsible management.
I always tend, as an auditor and as a chartered accountant, to assess management, not only from the standpoint of how it handles matters that are going well, but how it responds when things are not going well. When there are problems, does management take remedial actions? Does it take charge of the situation? Does it put into place the kinds of action plans that are necessary to ensure that we mitigate any damage that is being done, and that it puts into place the controls that are necessary so that it would preclude the possibility from this kind of thing from ever happening again.
That is responsible management and I believe that the assessment of the House, of the public accounts committee and, I am sure, of the judicial inquiry will be that the government took all appropriate and necessary steps to address this in a sound, professional and good management practices way.
Yes, charges have been laid against two individuals. The public and the House are aware of the details as they have been widely published. Does anyone remember Bre-X, Enron and even Nortel? We can all think of the list of companies, corporations, organizations and NGOs where there have been problems.
We are talking about human beings and in some cases people have taken advantage of the opportunities provided within their responsibilities to do wrong. It is going to happen and we understand that.
However if we were to implement a program and put in controls that would give a 100% guarantee that something like what has happened with regard to sponsorship could never happen, the program would be so inefficient government would be spending $10 to save $1. It makes no sense. It is like asking people to check everything at the border to ensure that not one handgun crosses that border because we know so many handguns come across.
If we were to introduce programs and measures to do the kind of checking that would be necessary to stop every single handgun from coming into Canada, we would shut down the economies of two countries. Seventy per cent of our export business goes across that border.
If we were going to stop that commerce velocity to achieve another objective, we would find that the cost would be far more. As an auditor, as an accountant, as a parliamentarian and as a human being with some common sense, I would want reasonable measures put in place to properly discharge our responsibilities, understanding that there would be no 100% guarantee. There is never a 100% guarantee.
I just want to remind the House of some of the measures that were in the last report of the Auditor General. First, to establish an independent commission of inquiry. The government has done that.
Second, to appoint a special counsel for financial recovery, and, where it is possible and with all the tools to recover any moneys that were wrongfully disbursed to anyone, to recover those. The government has done that.
Third, to introduce whistleblower legislation by March 31, 2004. The bill has been introduced and it is Bill C-25. I happen to be the chair of the government operations and estimates committee presently hearing witnesses on this bill. It is a very good start.
Further, the government is looking at measures to strengthen the audit committees for crown corporations and the possible extension of the Access to Information Act to crown corporations. That is in process.
There is also the initiation of a review on changes to the governance of crown corporations; the initiation of changes to the FAA, and on the accountabilities of ministers and public servants. Another measure was to allow the public accounts committee to begin its work early, which has been done.
My professional assessment as a CA, my assessment as a member of Parliament who has watched this closely and has been involved intimately in similar matters, is that the government has taken all appropriate steps to mitigate the problem and to ensure that management controls are put in place to deal with it properly, that allocations are going to be properly dealt with and finally, financial recoveries will take place.