Internal Audit of Job Placement Contracts Reveals Huge Overpayments and Mismanagement

Sept 28, 2006: NDP Media Release

VICTORIA: Internal government documents obtained by the New Democrats show that B.C. Liberals overpaid contractors millions of dollars for delivering job placement contracts that were meant to help welfare clients find ‘sustainable employment,’ says Jagrup Brar, NDP Critic for Employment and Income Assistance.

Among its findings, the Ministry of Finance audit shows that from July 2002 to at least April 2004, government overpayments to contractors, namely, West Coast Group and GTI Hiring, cost taxpayers between $1 and $4 million every year.

“ This internal audit shows that the B.C. Liberals have been hiding a multi-million dollar scandal from the public,” said Brar. “Premier Campbell must now order a full independent investigation to determine who ordered these overpayments to B.C. Liberal friendly firms.”

The audit, kept secret from taxpayers, shows that even though the government had the ability to enforce the ‘independent through employment’ rule, contractors were paid when clients passed away or were kicked off income assistance by the government.

“ What’s clear is that B.C. Liberals were administering contracts in ways that resulted in massive overpayments and unnecessary payments to Liberal friendly firms,” said NDP Income Assistance Critic Jagrup Brar.

Brar said the serious questions surrounding these audits should be debated in a fall session of B.C. Legislature. He said that the Premier and the Ministers responsible should be held to account publicly for this abuse of taxpayer dollars.

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Fore more information, contact Neera Ritcey at 604-317-4450 or 604-775-2405.