Laurentian restructuring costs expected to reach almost $20M, auditor general reports
In her first formal update, Ontario Auditor General Bonnie Lysyk said costs associated with restructuring Laurentian University are expected to total $19.84 million by the time it is complete.
The university spent $9.86 million on restructuring costs between January and August, Lysyk said in her annual report (https://www.auditor.on.ca/ ) to the Standing Committee on Public Accounts released Wednesday.
The committee, made up of MPPs from all parties, formally asked the auditor on April 28 to review Laurentian's operations. Officials from Laurentian were scheduled to appear before the committee at a closed-door session Wednesday afternoon.
The AG also outlined the conflict that has emerged with LU regarding which documents her office can access as she completes her value-for-money audit looking into why the university declared insolvency under the Companies' Creditors Arrangement Act (CCAA) in February.
She said the university's responses are "unprecedented" in her experience as auditor.
"Unfortunately, our office has been denied access by Laurentian to information we consider absolutely necessary for the conduct of our audit work," Lysyk wrote.
A dispute about whether the AG is entitled to privileged documents emerged over the summer, with Laurentian refusing to surrender documents or email communications covered by solicitor-client privilege.
"In many instances, it has also declined to provide non-privileged information on the basis that to review documents to determine if information is privileged would be too resource intensive," Lysyk wrote.
"Consequently, we have been restricted from obtaining unfettered access and timely access to information. Such a pervasive restriction of our audit work is unprecedented."
She said the university put in control procedures that "discourage staff from speaking freely or provide our office with unfettered access to information without fear of reprimand. These protocols have created a culture of fear surrounding interactions with our office."
The university also insisted on reviewing all information it gave to the auditor, rather than just handing over the information, Lysyk said.
"All of these self-imposed processes require Laurentian staff and external legal counsel to spend significant time and resources responding to our audit requests," she said.
"Unfettered access to information is fundamental to the work of our office."
Lysyk told the committee in October that Laurentian wasn't cooperating, and the committee made a formal demand for "the production of papers or things that the committee considers necessary for its work."
After three letters were sent to LU, Lysyk said some information began to arrive Nov. 17.
"However, Laurentian’s external legal counsel indicated that Laurentian would not provide privileged information, information subject to court-ordered confidentiality, and information that implicates third parties and the CCAA process," Lysyk said.
As a result, the committee sent a fourth letter asking LU president Robert Haché and the chair of the board of governors to appear before them Dec. 1.
Lysyk said she also has the support of the Ministry of Colleges and Universities, which has "strongly encouraged Laurentian to cooperate with the Office of the Auditor General of Ontario by providing the information requested for the special audit."
A court hearing will be held Monday to hear arguments from both sides on whether Laurentian has to surrender all documents the AG is requesting.
In response, officials at Laurentian issued the following statement:
"Laurentian has been cooperating with the Auditor General’s audit. The university has authorized and encouraged all staff to participate in interviews with the Auditor General. We have also granted her office direct access to our entire financial database, enrollment system, as well as all requested, non-privileged documents."
"Following the Auditor General’s application and agreement by Laurentian, a court hearing is scheduled for Monday, Dec. 6, on the issue of whether the Auditor General is entitled to receive privileged information between lawyers and their clients – a deeply valued right in our legal system. The Chief Justice of the Superior Court of Justice will determine the matter following Monday’s hearing."
Read Lysyk's full update here.
CTVNews.ca Top Stories
BREAKING Iran fires at apparent Israeli attack drones near Isfahan air base and nuclear site
An apparent Israeli drone attack on Iran saw troops fire air defences at a major air base and a nuclear site early Friday morning near the central city of Isfahan, an assault coming in retaliation for Tehran's unprecedented drone-and-missile assault on the country.
NEW After hearing thousands of last words, this hospital chaplain has advice for the living
Hospital chaplain J.S. Park opens up about death, grief and hearing thousands of last words, and shares his advice for the living.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
Ontario woman loses $15,000 to fake Walmart job scam
A woman who recently moved to Canada from India was searching for a job when she got caught in an online job scam and lost $15,000.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
Colin Jost names one celebrity who is great at hosting 'Saturday Night Live'
Colin Jost, who co-anchors Saturday Night Live's 'Weekend Update,' revealed who he thinks is one of the best hosts on the show.
Ottawa to force banks to call carbon rebate a carbon rebate in direct deposits
Canadian banks that refuse to identify the carbon rebate by name when doing direct deposits are forcing the government to change the law to make them do it, says Environment Minister Steven Guilbeault.
DEVELOPING Israel targets air defence system in Syria, state news agency says
Israel carried out a missile strike targeting an air defence unit in southern Syria, causing material damage, state-run SANA news agency quoted a military statement as saying Friday.
Some Canadian families will receive up to $620 per child today
More money will land in the pockets of some Canadian families on Friday for the latest Canada Child Benefit installment.