Manitoba

Auditor general to investigate allegations involving Manitoba Hydro

Manitoba's auditor general, whose job it is to examine the operations of the provincial government, confirmed Thursday he is looking into some allegations related to Manitoba Hydro — but did not specify what they were about.

Citing confidentiality, AG Tyson Shtykalo won't reveal substance of allegations

A man with a grey beard and brown hair wearing glasses and a suit poses for a photo
Auditor general Tyson Shtykalo confirmed through a spokesperson Thursday that he is examining allegations into Manitoba Hydro. (Submitted by the Office of the Auditor General of Manitoba)

Manitoba's auditor general is investigating allegations of government interference into Manitoba Hydro.

Allegations of political interference have swirled for months, particularly whether there was interference in awarding a data networking contract.

The auditor general, whose job it is to examine the operations of the provincial government, confirmed Thursday that he is looking into some allegations — though he did not specify what they were about.

"I can confirm that we are examining allegations involving Manitoba Hydro. This includes conducting interviews, requesting evidence, and other procedures," auditor general Tyson Shtykalo said in a statement sent to CBC News.

Shtykalo wouldn't comment further, citing confidentiality. But if he chooses to issue a report of the findings, it will be made publicly available whenever it is tabled in the legislative assembly, he said.

Manitoba Hydro International, the Crown corporation's commercial branch, was under review last September and ordered to stop pursuing new contracts that end Dec. 31, 2021, or sooner. 

Hydro then announced last month it would be closing the international consulting department of Hydro International, which led to concerns about potential privatization.

There had also been allegations that Paul Beauregard, the former secretary to the Treasury Board of Manitoba, had interfered in awarding a data networking contract.

In 2010, Manitoba Telecom Services (now Bell MTS) signed a 10-year contract, valued at over $124 million, to provide networking services in government offices across Manitoba. Bell MTS was awarded a 30-month extension last May, worth $37.5 million.

The Opposition NDP accused Beauregard, a former MTS executive, of not letting companies compete for that contract extension. By doing so, the NDP said he prevented Manitoba Hydro International from bidding on the contract.

The NDP called for an audit of Manitoba Hydro International last September, after obtaining documents through freedom of information they claim shows interference from Beauregard, who has served as one of Premier Brian Pallister's top advisers.

The NDP's accusations landed them in hot water.

Adrien Sala, the party's critic for Manitoba Hydro, revealed in December that he was the subject of a formal complaint under the province's respectful workforce policy.

Last month, Sala was informed the third-party investigation had him in violation of the policy. He has said he completely rejects its findings, arguing that he was doing his job as critic.

Meanwhile, a letter from Manitoba Civil Service Commissioner Charlene Paquin to Beauregard states she found no conflict of interest in how he carried out his duties.

"This is a really complicated issue," said NDP Leader Wab Kinew in a scrum Thursday.

"We need the resources and focus of the auditor general to be able to examine this carefully and to tell the people of Manitoba what is going on between the [Progressive Conservatives] and Manitoba Hydro."

Jeff Wharton, Manitoba minister of Crown services, told reporters Thursday that the province would welcome any report offered by the auditor general.

Manitoba Liberal Leader Dougald Lamont, meanwhile, is cautious of the accusations the NDP have made.

"There hasn't been any findings. All we have is accusations," said Lamont.

"There are lots of terrible things the PCs are doing with Hydro — and they're all the same things that the NDP were doing."

ABOUT THE AUTHOR

Nicholas Frew is a CBC Edmonton reporter who specializes in producing data-driven stories. Hailing from Newfoundland and Labrador, Frew moved to Halifax to attend journalism school. He has previously worked for CBC newsrooms in Manitoba and Saskatchewan. Before joining CBC, he interned at the Winnipeg Free Press. You can reach him at nick.frew@cbc.ca.

With files from Stephen Ripley