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Spending Scandal Uncovered at NLESD

September 13, 2018

It appears as though there is spending scandal at the Newfoundland Labrador English School District.


The Auditor General released a report calling out rampant overspending.


The report covered a period from July 2011 to June 2016.


In the report there are several instances where there was non-compliance with NLESD procurement policies and the Public Tender Act.


There was a lack of an open and transparent procurement process, including in the selection of vendors and establishment of fair and reasonable prices, or best value, for public goods and services.


Significant deficiencies in internal controls were identified, and a number of known indicators of unethical behaviours and/or possible fraud were highlighted. The report further noted that the Board of Trustees and senior management had not exercised the required oversight over NLESD’s internal control environment.


Auditor General Julia Mullaley said, "the lack of oversight of NLESD’s control environment and lack of action over the years to address known internal control deficiencies and disregard of policies, significantly increased the risk of errors, unauthorized actions, unethical behaviour and fraud.”

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