Description: In most Canadian jurisdictions, citizens would be upset if their government lost $70 million of hard-earned taxpayers’ dollars. But in a small jurisdiction like New Brunswick, the pain is magnified. On March 24, Auditor General Kim MacPherson, released a report on the NB government’s loss of $70 million for various financial arrangements it had made to support a construction company named Atcon. The report shows that senior civil servants had recommended that Cabinet not support the extension of $50 million in loan guarantees.
Date: March 24, 2015
1) What reaction do you have from reading this story?
2) What type of things can the average citizen do to prevent these type of losses from re-occuring?
3) What type of disclosure would a government’s financial statements have to show when these type of guarantees are made?