Audit approves dam compensation

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This article was published 13/09/2016 (3332 days ago), so information in it may no longer be current.

Manitoba Hydro has properly reimbursed First Nations adversely affected by the Keeyask dam project, paying out more than $169 million, the auditor general of Manitoba says.

In a report released Tuesday, auditor general Norm Ricard said the payments included funds to cover the costs of First Nations to negotiate a partnership agreement with Hydro and to compensate them for the mega-project’s impact on the communities.

“Everything is pretty good here,” Ricard said. “We’re talking about improvements to good processes… we pride ourselves on reporting on not just the bad, but also the good.”

Of the $169 million Hydro earmarked as of March 31, 2015, $18.6 million is to compensate for the adverse effects, and it will pay an additional $110 million over the life of the project.

The four First Nations affected by the project are Tataskweyak Cree Nation, War Lake First Nation, York Factory First Nation and Fox Lake Cree Nation.

The audit’s three recommendations for the utility are: to require certification expenses are paid and get proof of payment for major expenses; to conduct periodic risk assessments for each First Nation, including examining a First Nation’s accounting records; and get independent assurance agreed-to procedures are followed in any future agreements.

Hydro spokesman Scott Powell said the utility is “generally pleased with the audit.”

“It says what we’ve said all along that the policies we have are solid… We’ve learned from the past.”

Powell said the utility has already updated its procedures for the first recommendation and is working on the others.

Minister of Crown Services Ron Schuler was travelling up north and unavailable for an interview Tuesday.

But in a statement, Schuler said while the government welcomes the report, it “is disappointed that the common-sense practices of compliance recommended by the AG were not previously pursued.

“We have full confidence our new board of Manitoba Hydro will take a common-sense approach to prudent fiscal management and governance going forward, while working in the best interests of the ratepayers and all Manitobans to ensure the corporation’s claim-verification process is strengthened.”

kevin.rollason@freepress.mb.ca