CALGARY, AB: Today the Canadian Taxpayers Federation (CTF) released a leaked copy of the $45 million untendered contract between the Government of Alberta and the Tervita Corporation that raise serious questions about the corporation’s relationship with the government.
The leaked contract shows that the Tervita Corporation was paid $45 million for broadly defined flood-related work in High River. Tervita was not contracted for specific jobs, but in effect, had only to submit its bills to the government, up to a maximum of $45 million.
The CTF also released documents obtained through a Freedom of Information (FOI) request showing that the Tervita Corporation billed taxpayers an average of $36,486 per house demolished in High River as part of the untendered, sole-sourced contract. The nine demolitions took place between October 28 and November 29, 2013, four-to-five months after the floodwaters receded. The contact itself expired on January 15, 2014, a full six months after the flood.
“Albertans might give the government a pass for sole-sourcing contracts in the emergency period during and immediately after the flood for short-term work, but there is no sound reasoning for handing out a contract without a competition for medium and long-term work,” said CTF Alberta Director Derek Fildebrandt. “Taxpayers have no way of knowing if the Tervita Corporation overbilled taxpayers or not.”
According to Elections Alberta, the Tervita Corporation donated $36,755 to the Alberta PC Association since 2012 including $1,800 directly to the constituency association of then-premier Alison Redford and $900 to the constituency association Kyle Fawcett, the Associate Minister of Recovery and Reconstruction for Southwest Alberta.
“At the very least, the optics of handing out a massive, $45 million untendered contract, for work five months after the flood to a major corporate donor, is horrible,” said Fildebrandt. “That the Tervita Corporation also donated significant sums directly to the premier and to a minister directly responsible for dealing with Tervita, doesn’t help the optics.”
“In the short-term, Premier Hancock should to ask the Auditor General to examine if taxpayers received competitive, value for money services from Tervita, and ask the PC Party refund all donations made by the Tervita Corporation. In the long-term, whoever replaces Hancock as premier should ban all businesses receiving government contracts from making political donations,” concluded Fildebrandt.
A backgrounder can be viewed HERE
The full leaked contract can be viewed HERE
The full Freedom of Information (FOI) request can be viewed HERE
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