Released on June 30, 2016
Premier Brad Wall today said his government accepts the findings and recommendations of the Provincial Auditor’s Special Report on Acquiring Land: Global Transportation Hub Authority and Ministry of Highways and Infrastructure.In response to a request by the Premier on February 9, 2016, the Provincial Auditor looked into concerns about land transactions related to the Regina Bypass and the Global Transportation Hub (GTH). The Provincial Auditor released her report on the matter today. The report makes two recommendations to the GTH Authority and eight recommendations to the Ministry of Highways and Infrastructure (MHI) to improve their land acquisition processes.
“I want to thank the Provincial Auditor and her office for their very thorough work and for their recommendations that will improve the processes the government uses when acquiring land for these kinds of major projects,” Wall said. “Government needs to strike a careful balance between safeguarding taxpayers’ dollars, ensuring landowners are treated fairly and keeping the public informed. The Auditor has identified some deficiencies in our past practices and we will take steps to address them, based on her recommendations.”
With regard to the GTH land acquisition, the Auditor noted that a lack of co-ordination between the GTH and MHI led to “delayed decisions on buying the land during a period of time of rapidly escalating land values,” that these delays, “contributed to buying this land at a significantly higher price” and that, “the government did not take sufficient and timely action to mitigate its, and ultimately the taxpayers’, exposure to increases in land values.”
“While all agreed on the importance of buying the East Parcels and were aware of the rapidly escalating land prices, no agency had clear responsibility for leading the purchase of them,” the Provincial Auditor concluded.
The Provincial Auditor’s report says that GTH Minister Bill Boyd got involved in the land purchase in the fall of 2013 because he had become, “increasingly concerned about the rapid escalation of land prices around Regina and the GTH’s and MHI’s ability to buy the East Parcels in the near term.”
The Provincial Auditor also found that the GTH Minister acted within his authority under the GTH Act and that the land purchase was properly approved by cabinet.
The Provincial Auditor also states: “For Board members and key employees we sampled, including the Board Chair (Boyd)…we did not find any evidence of conflict of interest.” The Auditor also notes: “For the Chair/Minister, this is consistent with the Saskatchewan Conflict of Interest Commissioner’s findings in January 2016.”
The report indicates that the GTH Board discussed the land purchase and, “determined that the negotiated price would be a commercially profitable transaction and felt that it was not putting public money at risk.”
Attached is a backgrounder outlining actions the GTH Authority and MHI have already taken and will take in response to the Provincial Auditor’s 10 recommendations.
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For more information, contact:
Leanne Persicke
Executive Council
Regina
Phone: 306-787-4829
Email: leanne.persicke@gov.sk.ca