Special Examination—Ridley Terminals Inc.—Audit of Ridley Terminals Inc. finds multiple pervasive issues

Special Examination—Ridley Terminals incorporatedInc.Audit of Ridley Terminals Inc. finds multiple pervasive issues

Ottawa, 27 April 2018—Today, Ridley Terminals Inc. made public the results of an audit conducted over the last year by the Office of the Auditor General of Canada.

The audit found that the Board did not meet its key responsibilities and failed to oversee the Corporation’s management, leading to multiple significant deficiencies often relating to oversight. For example, the Board went outside the government’s mandatory Governor in Council process to appoint officers and instead hired a President and Chief Operating Officer on contract, at a rate of pay much higher than the one set for Governor in Council appointees.

The audit also found that Transport Canada—the department responsible for Ridley Terminals Inc.—had poor oversight of the Corporation in some important areas. For example, although the Department knew that the Corporation intended to go outside the Governor in Council appointment process and advised Ridley Terminals Inc. of the implications, it did not stop the Corporation from going forward. It also did not submit corporate plans to the Treasury Board for approval, resulting in the Corporation operating without government approval. The Department further failed to support the Corporation by not clearly communicating whether Ridley Terminals Inc. was still for sale or not.

The Board approved and entered into a 20-year agreement for a diversification project without proper approval from the government, while the Corporation was potentially slated to be sold. Transport Canada’s lack of oversight and clear strategic direction hindered the Corporation’s ability to make decisions about its future while operating within its authority.

The audit report will be included in the Reports of the Auditor General of Canada to Parliament in Spring 2018. It is available on the link to a portable document format (PDF) fileCrown Corporation’s website.

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