Dateline: 10/01/03
Audit of Office of Privacy Commissioner
The Auditor General of Canada released an audit of the Office of the Privacy Commissioner on September 30, 2003, saying she is outraged by the mismanagement she found. In her opening statement to a press conference, Auditor General Sheila Fraser said that George Radwanski, the former Privacy Commissioner of Canada, "abdicated his responsibilities as a deputy head for ensuring the proper administration of the Office."
The Auditor General said she was saddened by the abuse of power in this case, and made a point of stressing that the situation is not the norm in the federal public service. "Using this case to tarnish the reputation of the staff of the Office of the Privacy Commissioner and the entire federal public service would be unfair and would only add to the considerable damage that has been done."
The House of Commons Committee on Government Operations and Estimates asked for the audit when an examination of Radwanski's expense reports in the spring of 2003 raised concerns about the financial management practices of the Office of the Privacy Commissioner itself.
Mismanagement at the Office of the Privacy Commissioner
Some of the problems cited in the audit of the Office of the Privacy Commissioner are:
- financial statements were falsified to cover up overspending of $234,000 by the Office of the Privacy Commissioner. This has been referred to the RCMP for investigation.
- George Radwanski received two payments of $15,000 "without justification," only one of which has been repaid.
- senior officers, including George Radwanski, took vacation time but didn't claim it, and them took cash for unused vacation. Radwanski himself received about $56,000 in payments for vacation leave which the Auditor General believes were not justified.
- spending on hospitality and travel by the former Privacy Commissioner was unreasonable and extravagant, and on many international trips Radwanski and the Senior Director General conducted "minimal business."
- the office did not report some taxable benefits, and neither made the appropriate deductions nor paid tax to the Canada Customs and Revenue Agency on these items.
- the office broke rules on the hiring, promotion and compensation of employees. George Radwanski "abused his discretion" in hiring and compensation matters.
Role of Central Agencies
The Auditor General placed some blame on the Public Service Commission and Treasury Board for failing to respond when they became aware of problems.
The Public Service Commission Audit on the hiring practices of the Office of the Privacy Commissioner, which was released September 29, 2003, also found serious deficiencies in hiring and promotion practices at the Office of the Privacy Commissioner. The Public Service Commission plans to pursue at least eight separate investigations under the investigations and audits and fraud sections of the Public Service Employment Act (PSEA).
Lucienne Robillard, the minister responsible for the Treasury Board, says her agency will work with the Interim Privacy Commissioner on a case-by-case basis to recover money. In a statement responding to the Auditor General's report, the minister also said that while some specific control measures have already been put in place, she and Treasury Board officials will work closely with the House of Commons Government Operations Committee and with individual Officers of Parliament to improve accountability without hampering the independence of the Officers or the role of Parliament.
