© Adrian Wyld / The Canadian PressPrime Minister Stephen Harper is shown responding to a question during the family photo opportunity at the G8 G20 Summit in Huntsville, Ont., on Friday June 25, 2010.
The Harper government did not act "clearly" and "transparently" when it sought permission from Parliament to spend $50 million on a G8 fund that delivered projects last year in a Conservative riding, according to a draft report by the auditor-general.
Further, according to the document obtained Monday by Postmedia News, the Conservative government failed to adequately keep records to explain how the 32 projects were chosen for Parry Sound-Muskoka, the southern Ontario riding represented by Tony Clement, the industry minister.
The federal campaign was hit with a bombshell in media reports that said Sheila Fraser concluded in a draft audit prepared in mid-January that the government had misinformed MPs and perhaps had even broken the law through the way it sought funds in late 2009.
Senior Conservatives responded by saying that initial audit was not valid because it was overtaken by another draft written the following month by the auditor-general's office which wasn't as critical.
That second report-obtained by Postmedia News and dated Feb. 1 -does not flatly state that the Tories misinformed Parliament. But it is critical of the Conservative government -which first came to office in 2006, promising greater transparency -for failing to be adequately transparent in this instance.
The draft report recommends that the government review its practices "so that when Parliament approves funds, it is presented with clear and accurate information about how the funds will be used."
Fraser came under pressure from all parties to release her final report, which was supposed to be introduced in the House April 5 but was postponed once Parliament was dissolved in late March.
However, Fraser declared she will wait until after the May 2 election before she releases the audit in Parliament. And in direct response to the leak of the mid-January draft audit which ignited controversy on the campaign trail, she urged Canadians to wait for her final report to read its findings and conclusions.
Still, it is clear the findings in the Feb. 1 audit -though perhaps less harsh in tone -represent a distinct criticism of the Tories. The controversy threatens to throw Conservative leader Stephen Harper off stride just as he enters this week's televised leaders debates.
In her report, Fraser draws attention to how the government decided in February of 2009 to spend $50 million in the Parry Sound-Muskoka region, which was scheduled to host the G8 summit in June 2010.
The government decided to establish a G8 Legacy Infrastructure Fund, with the money to be used to help the region prepare for the summit and also to "enhance local infrastructure, and showcase the natural beauty of the area for foreign dignitaries and media."
Opposition critics have always regarded the expenditures as a "slush fund" to improve the Conservatives' popularity and help re-elect Clement. Following the new leaks, they have renewed their attack, calling for a public inquiry and accusing the Conservatives of misleading Parliament.
In her Feb. 1 draft report, Fraser notes: "Parliament's approval is needed before funding can be provided and moneys spent. When Parliament is asked to approve such funding, it should be provided with clear information on the nature of the request."
However, when the government sought parliamentary approval in 2009 through the supplementary estimates, it folded the $50 million into a larger, $83-million category, which was described as a Border Infrastructure Fund.
The supplementary estimates said the money was to be used for "investment in infrastructure to reduce border congestion" -with no mention made of how much of the money was actually going to ParrySoundMuskoka, which is nowhere near the border.
Parliament approved the funding request in December 2009.
Liberal leader Michael Ignatieff accused Harper of sitting on the report, and called for its immediate release.
"These are shocking revelations. I don't know how Canadians can have confidence in a government that treats public money in this way."
how about the ONE BILLION that was spent on g20 security buying the rcmp a bunch of new toys they didn't even use during that event; the next closest security g20 budget was 30 million - why did Canadians need to spend 70 million MORE?