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.
Source: www.atlantic.ctvnews.ca
Date: March 24, 2015
Discussion Points:
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?
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