Auditor general investigating theft of Nova Scotia Liberal Party funds

Nova Scotia's Auditor General Kim Adair is looking at what the Liberal Party of Nova Scotia did when it discovered a staffer had stolen thousands of dollars in party funds two years ago.

The AG's website says the report will outline the auditor general's work on the "unauthorized disbursements" listed in the Nova Scotia Liberal Party's 2021 financial statements.

That report will be the first official accounting of the theft, the party's efforts to recover the money and the cost of its internal investigation.

According to the party, a longtime staffer made "unauthorized disbursements over several years," but that money had been repaid by the employee.

"A total of $194,557 was received during the year ... $19,557 of the reimbursement related to unauthorized disbursements in 2020," and "$62,762 for recovery of legal and forensic audit costs incurred during 2021 and $112,238 for unauthorized disbursements prior to 2020."

Prior to the release of the financial statements, the theft and internal investigation by the party was the subject of intense debate and speculation among party members, fuelled in part by the secrecy surrounding what happened.

The spat even threatened to derail the party's annual general meeting in March 2022.

'We've been very transparent'

During question period Tuesday, Premier Tim Houston used the fact the AG had launched an investigation to accuse the current Liberal Leader Zach Churchill of being secretive. 

"You know we've been very transparent about what's required. We've been very transparent about what's necessary with our housing program," said Houston, in response to criticism levelled by Churchill about the government's efforts to spur housing starts.

"We're being open and honest with Nova Scotians. I wish that member would be transparent and open and honest about the auditor general investigation that his party is currently subject to."

Speaking to CBC News later, Churchill said he was anxious to see what the AG's office determined in its investigation.

"Listen, I don't have the details yet," said Churchill. "We have to wait and see what the auditor general's report is."

"I am eagerly awaiting what the auditor general says about it so we can respond to it appropriately."

Churchill said once the report is released, he and his party will consider any recommendation the AG puts forward.