Parts of Muskrat Falls audit will be kept secret, commissioner rules
Justice Richard LeBlanc says forensic report could do financial harm to Nalcor if made fully public
Parts of an independent audit into the construction phase of the Muskrat Falls hydroelectric project will be withheld from the public and the project's main contractor, ruled Richard LeBlanc, commissioner for the Muskrat Falls inquiry.
Groups submitted arguments to the inquiry commission Tuesday afternoon, with Nalcor Energy and the provincial government arguing for redaction of what they called "commercially sensitive" information contained in the report.
Nalcor officials received a copy of the report, prepared by independent auditor Grant Thornton, on Dec. 18, according to commission co-counsel. The Crown corporation has argued it fears the release of information in the report would give Astaldi, the company contracted to build Muskrat Falls, unfair advantages.
Nalcor argued that some information in the report, including estimated costs of work contracts and amounts of bids and proposals, should be kept secret.
Astaldi details will be public
LeBlanc agreed that "there is reasonable prospect for significant financial harm to Nalcor" if information about ongoing contracts is disclosed.
"As a result I am prepared to restrict to some degree the contents of the report," he said.
But amounts and evaluations of bids, tenders and proposals will be made public, as will all information related to Astaldi.
"The Astaldi matter is not an ongoing contract. That contract has been terminated. It's far different from the other ongoing contracts, which I accept have some commercial sensitivity," he said.
Astaldi, the Concerned Citizens Coalition, and the provincial consumer advocate submitted arguments against censoring the report.
Government OK with redactions
Nalcor lawyers told the commission that public access to the audit "will give Astaldi procedural advantages" if it gained access to information that is "unavailable to it under the arbitration rules, increasing the risk of commercial harm to the interests of Nalcor and by extension, the province and its ratepayers and taxpayers."
The provincial government said in its submission that it supports redactions or in-camera hearings "where necessity is demonstrated," and said it was "comforted" that the commission itself would have access to the report, "even where limited redaction for the purpose of public hearings may be necessary."
Astaldi argued Nalcor had not met the bar for proving that information contained in the audit could reasonably do commercial damage if made public. LeBlanc appeared to side with the contractor, stating that all information within the inquiry should be open and accessible.
"It's a public inquiry. It's obviously meant to be public," he said.
Astaldi's submission also argued that restricting information "will undoubtedly detract from the public's confidence in this inquiry.… Nalcor's attempt to proceed, shrouded in secrecy, is antithetical to Nalcor's powers, duties and responsibilities as a Crown corporation."
Inquiry hearings resume Feb. 17. The Grant Thornton report will be the first item of business, LeBlanc said Tuesday.