WINNIPEG -- A provincial quarry rehabilitation program worth more than $5 million has been found to have been lacking oversight and internal controls, according to the latest report from the Deputy Auditor General.
Deputy Auditor General Tyson Shtykalo released a report on Wednesday that gives details into his investigation into the program.
"Weak oversight and poor internal controls resulted in mismanagement of the Quarry Rehabilitation Program," Shtykalo wrote in the report. "This investigation demonstrates the vital importance of robust management and strong internal controls."
On March 12, 2019, Finance Minister Scott Fielding requested that the Auditor General look into "irregularities in the financial management" of the program, which has been suspended since July of 2018.
The Quarry Rehabilitation Program was created in 1992. It had operators of quarries in Manitoba pay levies (12 cents per tonne of aggregate produced as of 2012) into a fund. The program would then receive applications to rehabilitate depleted pits or quarries. Once the rehabilitation was approved and completed, the program would make payments to contractors.
According to the report, in 2016/17, there were 84 rehabilitation projects completed, totalling $3.4 million, and the program collected $3 million in levies.
It said as of the end of March 2019, the rehabilitation fund totaled $5.3 million.
Shtykalo outlines several issues with the program, including weak controls over levy collection and royalty revenue. He also said the program did not have a sufficient risk management strategy in place to identify and prioritize depleted sites to rehabilitate.
He makes 15 recommendations in the report. You can read the full report here:
In the report, the Department of Agriculture and Resource Development said it is starting a "zero-based review" of the program.
"As we fundamentally change and redesign the program, we will give serious considerations to the recommendations," the department said in the report.
Shtykalo said they also conducted a forensic investigation and provided the findings to the department and government officials. Due to potential legal consequences, Shtykalo said they will not report on certain findings.
