NB Liquor lacks transparency, fails to properly document activities: auditor general
The Crown corporation that operates New Brunswick's liquor stores lacks accountability and transparency, and it is not properly documenting its activities, the province's auditor general said Thursday.
NB Liquor has no plan or strategy to develop the province's liquor industry beyond the broad purpose outlined in law, Paul Martin told a legislature committee after releasing his report. The corporation, he added, "had no targets against which to regularly monitor or evaluate performance."
A computer program used by the corporation did not retain historical data; instead, new data would overwrite previous entries, Martin said.
"The lack of historical data is worrisome because without it, (NB Liquor) has no documented rationale to defend its business decisions. This is a serious concern for a corporation that is publicly accountable," he said.
"We found that NB Liquor habitually approved key decisions verbally, typically through undocumented meetings and conversations. As a result there were no documents to support many key decisions in the process that we reviewed."
The corporation, Martin said, has entered into special arrangements with some producers that have resulted in profit margins lower than the margins it makes on its deal with other producers. As well, NB Liquor doesn't have the required documentation to justify its special deals, which he said leaves the corporation with little to no defence against claims of favouritism and bias.
"We found four instances where local producers were receiving a special deal in terms of payment for their product that exceeded the moneys paid to other producers in the province," Martin later told reporters. "There's absolutely an issue around treating people with equality in this process."
Green Party member Kevin Arseneau said the unequal treatment of producers is worrisome.
"It's concerning that there was preferential treatment and then to not know why -- that is all vital information, especially coming from a Crown corporation," he said.
Martin issued 19 recommendations, including increased transparency and accountability.
In a statement, NB Liquor said it has been working with the auditor general for much of the past year to provide the necessary information.
"While there are valuable recommendations contained within the report, a lot of that work was already underway," spokesperson Emilie Dow said. "Over the past three years, we have come a long way when it comes to following industry best practices and in the development of our programs and services, offering various retail channels across the network and supporting our growing local alcohol producer sector."
She said six of the 19 recommendations have already been implemented, adding that all will be addressed within the next two fiscal years.
NB Liquor is an important revenue generator for the province, contributing $1.7 billion over a 10-year period ending in March 2021.
This report by The Canadian Press was first published June 23, 2022.
CTVNews.ca Top Stories
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
'Anything to win': Trudeau says as Poilievre defends meeting protesters
Prime Minister Justin Trudeau is accusing Conservative Leader Pierre Poilievre of welcoming 'the support of conspiracy theorists and extremists,' after the Conservative leader was photographed meeting with protesters, which his office has defended.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
Boeing's financial woes continue, while families of crash victims urge U.S. to prosecute the company
Boeing said Wednesday that it lost US$355 million on falling revenue in the first quarter, another sign of the crisis gripping the aircraft manufacturer as it faces increasing scrutiny over the safety of its planes and accusations of shoddy work from a growing number of whistleblowers.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
"It's a bit of a complicated pattern; we've got a lot going on," said Jennifer Smith of the Meteorological Service of Canada in an interview with CTVNews.ca on Wednesday. "[As is] typical with weather, all of these things are related."
Police tangle with students in Texas and California as wave of campus protest against Gaza war grows
Police tangled with student demonstrators in Texas and California while new encampments sprouted Wednesday at Harvard and other colleges as school leaders sought ways to defuse a growing wave of pro-Palestinian protests.