Nalcor hires former deputy minister as 'global leader' offshore consultant for $337K
PCs not happy about Gordon McIntosh snagging consulting contract
A former deputy minister for the Department of Natural Resources was recently awarded a $337,000 consulting contract without competition by Nalcor, prompting scrutiny from the Opposition in the House of Assembly Tuesday.
Aberdeen International Associations, co-directed by Gordon McIntosh — who worked alongside Minister Siobhan Coady in 2016 and helped design the province's offshore plan — was recently awarded a "sole source" contract with Nalcor to now consult on the same plans he developed.
It was in violation of the Conflict of Interest [Act].- Keith Hutchings
McIntosh made about $180,000 as deputy minister.
The "sole source" decision means nobody else was considered for the contract, a move Coady defended as being within the Crown corporation's purview.
"Nalcor does budget its own consultation … and this is within that budget," she said during question period in the legislature.
PC MHA Keith Hutchings pressed Coady on why McIntosh's company was selected over someone closer to home. McIntosh's company is based in Scotland.
"We've grown our oil and gas industry in the province for the last 20 or 30 years. We've got lots of expertise in the province, people working … around the world. Why wouldn't this go to competition?" he said.
"The direction we're taking is really to drive the growth of the industry," Coady said, referring to a government plan for the offshore dubbed "Advance 2030."
"Having that international expertise, that global awareness, is very, very important. We compete around the world for the investments that are being made."
Hutchings also raised the possibility of the hire creating a conflict of interest, taking issue with a conflict waiver in Nalcor's contract to Aberdeen Associates.
"It was in violation of the Conflict of Interest [Act]," he told reporters. "There had to be a special exemption rendered for it. It's defined as a 'specialized service' contract we've been giving no indication as to why that is or what the circumstances were, [or] why it wouldn't go to a public competition."
Coady shot down the suggestion of any wrongdoing on the Assembly floor. "Waivers under the Conflict of Interest Act are not uncommon. They do occur," she said.
"It happens all the time. Remember, [the contract is] with a Crown corporation. It's not in conflict with what he will be doing."
Nalcor came under fire in 2017 for not releasing contractor payments. The Department of Natural Resources changed that last year, amending legislation to make Nalcor contracts public.
A Nalcor spokesperson told CBC News in a statement Tuesday that McIntosh was a desirable choice, given his experience in leading offshore projects and familiarity with the province.
"Because of his experience and knowledge," the spokesperson said, "we considered the contract a specialized service so it was sole-sourced."