P.E.I. government loan write-offs to be made public
Auditor general recommended in spring government loan write-offs be made public
P.E.I. Finance Minister Allen Roach has tabled legislation that would allow cabinet to publish details when a government loan is written off, including who held the loan and how much it was worth.
The legislation would also require cabinet authorization for all loan write-offs and cancellations, including those from Crown corporations.
Roach said there would be some exemptions in the publication of details.
"As an example, if we have a student loan where the student has a disability and can't pay back the loan, we'll be asking for an exemption of that nature. Or if it has something to do with a social services issue where there's privacy issues," he said.
"However, in the standard process of doing business, where there's loans out to companies or corporations, if the loan is to be written off that becomes public."
Roach said the legislation was prompted by recommendations made this spring by P.E.I.'s auditor general.
In her 2015 report Auditor General Jane MacAdam noted provincial Crown corporations had written off millions of dollars in government loans without cabinet approval, and without any public record the write-off had occurred.
Roach said all current loans would fall under the new rules if the legislation is enacted, but the government will not be providing details on loans written off before the new rules come into effect.