AUDITOR GENERAL MUST INVESTIGATE CASH BONUS SCHEME: NDP

From the Alberta NDP

Alberta’s NDP is requesting the Auditor General investigate the UCP government’s process for pandemic management bonuses as new bonus pay policies were only recently approved in March.

According to CBC News, the Government of Alberta paid out $2.4 million in extra compensation to Government of Alberta managers in 2021 for work related to the pandemic.

An updated “Extra or special services compensation directive” was approved by the Alberta Public Service Commission in March 2022, reporting to then-finance minister Travis Toews. The directive includes two processes for lump-sum payouts, one that requires Treasury Board approval and one that does not.

The directive on the website in February. The creation of a more recent compensation directive suggests considerable effort went into reviewing the policy, raising questions as to how Toews could possibly have no knowledge of the management bonus structure prior to media reports.

“For many Albertans, including members of our caucus who have served as ministers and on Treasury Board, MLA Toews’ claims defy belief,” wrote Alberta NDP Finance Critic Shannon Phillips in a letter to Auditor General Doug Wylie.

“Not only did he have ministerial authority over the policy, but such significant payments, on such a widespread scale, would — as a standard operating procedure — be brought to the attention of the Minister or be considered by the Treasury Board Committee as whole for their appropriateness.”

The Alberta NDP is asking the Auditor General to investigate the following questions:

Was then Minister of Finance Travis Toews ever briefed on COVID bonus pay? And likewise, did the then Minister verbally approve of these payments? Was the Treasury Board Committee of Cabinet ever informed of these payments, either as an item For Decision or For Information?
Was the policy on management bonus pay followed appropriately, during the fiscal year in question?
As the directive on “Extra or special services compensation directive” was reviewed and updated under former Minister Toews, what role did he play in its development and approval? Likewise, what was the timeline on updating this directive?
Did any members of the political staff, in either the Premier’s Office or a Minister’s Office receive bonus payments for COVID19 related actions, which were not in alignment with their employment contract?
In addition to the extraordinary bonus payments paid in 2021, how many bonus payments were made thus far in 2022?

——

Letter sent by NDP Finance Critic Shannon Phillips to Alberta Auditor General Doug Wylie

Dear Mr. Wylie,

I am writing to request a performance audit of the Government of Alberta’s bonus payment structure and process related to the COVID-19 pandemic response, and in particular, the actions of the President of Treasury Board and Minister of Finance.

As you are likely aware, and as originally reported by the CBC, the Chief Medical Officer of Health received $227,911 in cash benefits in calendar year 2021 on top of her regular salary of $363,634. While this bonus amounted to 63 per cent of her base pay – or roughly $19,000 per month – media has also reported an additional 106 government employees received supplemental bonus pay.

By all indications, the scale and scope of these bonus payments are unique in Alberta’s history, and are out of line with other provinces who faced similar pandemic demands and challenges.

According to responses provided to media by the government, the Public Service Commission overseen by then-Minister of Finance Travis Toews was responsible for the bonus payment policy, and the payments made to these employees..

Subsequent to these bonus payments becoming public and entering the public conversation, former Minister Toews stated on Aug. 2 through a campaign spokesperson, that he did not authorize or have knowledge of these payments.

On Aug. 3, Mr. Toews promised that, as Premier, no bonuses would be paid “without a ministerial signature.” The implication of this commitment was that the Minister responsible for the bonus payments was, at the time, entirely in the dark.

For many Albertans, including members of our caucus who have served as ministers and on Treasury Board, MLA Toews’ claims defy belief. Not only did he have ministerial authority over the policy, but such significant payments, on such a widespread scale, would – as a standard operating procedure – be brought to the attention of the Minister or be considered by the Treasury Board Committee as whole for their appropriateness.

I am mindful that the Government of Alberta’s “Extra or special services compensation directive” (henceforth referred to as the “directive”) under which these officials were compensated was last reviewed and updated in March 2022. As such, it does not appear reasonable that the Minister responsible would not be aware and actively involved in the directives’ development and approval, and I should note that the directive does not require a ministers’ signature for the paying of bonuses. I also note with interest that the directive was not on the government’s website as of February 2022, suggesting that considerable thought went into policy for the provision of extraordinary bonus payments after 2021, and that the new directive would allow for similar payments in 2022.

Perhaps more importantly, the directive “provides the criteria and approach to the application of lump sum payments.” While there appears to be two types of lump sum payments under this directive, at least one requires Treasury Board approval. Given the threshold of Treasury Board approval under this directive, is it not reasonable to conclude that any lump sum payments to such a large group of officials would not be brought to the attention of the minister responsible.
Furthermore, I am mindful that former Minister Toews, during calendar year 2021, was actively involved in public sector bargaining and compensation, and brought forward to cabinet changes to management compensation in the core public service (see for example, Order in Council 338/2021). The record indicates that the former Minister was deeply involved in compensation issues, including for specific employees, and therefore Albertans are rightly skeptical of his
current claims of ignorance on the COVID bonus payment issue.

In June 2022, you released a report into the activities of then Minister Toews, and Treasury Board and Finance, into the lack of accountability for $4 billion in COVID19 spending during fiscal year 2020-21.

As bonuses are generally paid at the end of the year, and as part of your further performance audit work into COVID19 spending for fiscal year 2021-2022, we are requesting that you investigate and report on the following issues:

1. Was then Minister of Finance Travis Toews ever briefed on COVID bonus pay? And likewise, did the then Minister verbally approve of these payments? Was the Treasury Board Committee of Cabinet ever informed of these payments, either as an item For Decision or For Information?

2. Was the policy on management bonus pay followed appropriately, during the fiscal year in question?

3. As the directive on “Extra or special services compensation directive” was reviewed and updated under former Minister Toews, what role did he play in its development and approval? Likewise, what was the timeline on updating this directive?

4. Did any members of the political staff, in either the Premier’s Office or a Minister’s Office receive bonus payments for COVID19 related actions, which were not in alignment with their employment contract?

5. In addition to the extraordinary bonus payments paid in 2021, how many bonus payments were made thus far in 2022?

The issue of the appropriateness of bonus pay for selected officials during the COVID19 response has generated significant discussion amongst Albertans. More importantly, the role of ministerial oversight and competency has also been called into question on this matter. Given the opaqueness of the Government of Alberta’s responses to legitimate public inquiries, we are asking for your assistance.

At present, only your office has the authority to investigate and answer the public’s questions. We strongly believe that the aforementioned issues warrant your immediate attention, and we look forward to your response.

Sincerely,

Shannon Phillips
NDP Official Opposition Finance Critic
MLA for Lethbridge-West

Related Topics:#AlbertaCashBonus feature

Up Next

It’s time for the Alberta Sovereignty Act – Red Deer South MLA Jason Stephan

Don't Miss

Vaccines Will Not and Cannot Make this Virus Endemic

Todayville

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Feds pull the plug on small business grants to Minnesota after massive fraud reports

Digital ID / 4 hours ago

The Global Push for Government Mandated Digital IDs And Why You Should Worry

International / 5 hours ago

China Stages Massive Live-Fire Encirclement Drill Around Taiwan as Washington and Japan Fortify

Alberta

Alberta Next Panel calls for less Ottawa—and it could pay off

Published on December 29, 2025

Todayville

From the Fraser Institute

By Tegan Hill

Last Friday, less than a week before Christmas, the Smith government quietly released the final report from its Alberta Next Panel, which assessed Alberta’s role in Canada. Among other things, the panel recommends that the federal government transfer some of its tax revenue to provincial governments so they can assume more control over the delivery of provincial services. Based on Canada’s experience in the 1990s, this plan could deliver real benefits for Albertans and all Canadians.

Federations such as Canada typically work best when governments stick to their constitutional lanes. Indeed, one of the benefits of being a federalist country is that different levels of government assume responsibility for programs they’re best suited to deliver. For example, it’s logical that the federal government handle national defence, while provincial governments are typically best positioned to understand and address the unique health-care and education needs of their citizens.

But there’s currently a mismatch between the share of taxes the provinces collect and the cost of delivering provincial responsibilities (e.g. health care, education, childcare, and social services). As such, Ottawa uses transfers—including the Canada Health Transfer (CHT)—to financially support the provinces in their areas of responsibility. But these funds come with conditions.

Consider health care. To receive CHT payments from Ottawa, provinces must abide by the Canada Health Act, which effectively prevents the provinces from experimenting with new ways of delivering and financing health care—including policies that are successful in other universal health-care countries. Given Canada’s health-care system is one of the developed world’s most expensive universal systems, yet Canadians face some of the longest wait times for physicians and worst access to medical technology (e.g. MRIs) and hospital beds, these restrictions limit badly needed innovation and hurt patients.

To give the provinces more flexibility, the Alberta Next Panel suggests the federal government shift tax points (and transfer GST) to the provinces to better align provincial revenues with provincial responsibilities while eliminating “strings” attached to such federal transfers. In other words, Ottawa would transfer a portion of its tax revenues from the federal income tax and federal sales tax to the provincial government so they have funds to experiment with what works best for their citizens, without conditions on how that money can be used.

According to the Alberta Next Panel poll, at least in Alberta, a majority of citizens support this type of provincial autonomy in delivering provincial programs—and again, it’s paid off before.

In the 1990s, amid a fiscal crisis (greater in scale, but not dissimilar to the one Ottawa faces today), the federal government reduced welfare and social assistance transfers to the provinces while simultaneously removing most of the “strings” attached to these dollars. These reforms allowed the provinces to introduce work incentives, for example, which would have previously triggered a reduction in federal transfers. The change to federal transfers sparked a wave of reforms as the provinces experimented with new ways to improve their welfare programs, and ultimately led to significant innovation that reduced welfare dependency from a high of 3.1 million in 1994 to a low of 1.6 million in 2008, while also reducing government spending on social assistance.

The Smith government’s Alberta Next Panel wants the federal government to transfer some of its tax revenues to the provinces and reduce restrictions on provincial program delivery. As Canada’s experience in the 1990s shows, this could spur real innovation that ultimately improves services for Albertans and all Canadians.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Alberta

Alberta Next Panel calls to reform how Canada works

Published on December 28, 2025

Todayville

From the Fraser Institute

By Tegan Hill

The Alberta Next Panel, tasked with advising the Smith government on how the province can better protect its interests and defend its economy, has officially released its report. Two of its key recommendations—to hold a referendum on Alberta leaving the Canada Pension Plan, and to create a commission to review programs like equalization—could lead to meaningful changes to Canada’s system of fiscal federalism (i.e. the financial relationship between Ottawa and the provinces).

The panel stemmed from a growing sense of unfairness in Alberta. From 2007 to 2022, Albertans’ net contribution to federal finances (total federal taxes paid by Albertans minus federal money spent or transferred to Albertans) was $244.6 billion—more than five times the net contribution from British Columbians or Ontarians (the only other two net contributors). This money from Albertans helps keep taxes lower and fund government services in other provinces. Yet Ottawa continues to impose federal regulations, which disproportionately and negatively impact Alberta’s energy industry.

Albertans were growing tired of this unbalanced relationship. According to a poll by the Angus Reid Institute, nearly half of Albertans believe they get a “raw deal”—that is, they give more than they get—being part of Canada. The Alberta Next Panel survey found that 59 per cent of Albertans believe the federal transfer and equalization system is unfair to Alberta. And a ThinkHQ survey found that more than seven in 10 Albertans feel that federal policies over the past several years hurt their quality of life.

As part of an effort to increase provincial autonomy, amid these frustrations, the panel recommends the Alberta government hold a referendum on leaving the Canada Pension Plan (CPP) and establishing its own provincial pension plan.

Albertans typically have higher average incomes and a younger population than the rest of the country, which means they could pay a lower contribution rate under a provincial pension plan while receiving the same level of benefits as the CPP. (These demographic and economic factors are also why Albertans currently make such a large net contribution to the CPP).

The savings from paying a lower contribution rate could result in materially higher income during retirement for Albertans if they’re invested in a private account. One report found that if a typical Albertan invested the savings from paying a lower contribution rate to a provincial pension plan, they could benefit from $189,773 (pre-tax) in additional retirement income.

Clearly, Albertans could see a financial benefit from leaving the CPP, but there are many factors to consider. The government plans to present a detailed report including how the funds would be managed, contribution rates, and implementation plan prior to a referendum.

Then there’s equalization—a program fraught with flaws. The goal of equalization is to ensure provinces can provide reasonably comparable public services at reasonably comparable tax rates. Ottawa collects taxes from Canadians across the country and then redistributes that money to “have not” provinces. In 2026/27, equalization payments is expected to total $27.2 billion with all provinces except Alberta, British Columbia and Saskatchewan receiving payments.

Reasonable people can disagree on whether or not they support the principle of the program, but again, it has major flaws that just don’t make sense. Consider the fixed growth rate rule, which mandates that total equalization payments grow each year even when the income differences between recipient and non-recipient provinces narrows. That means Albertans continue paying for a growing program, even when such growth isn’t required to meet the program’s stated objective. The panel recommends that Alberta take a leading role in working with other provinces and the federal government to reform equalization and set up a new Canada Fiscal Commission to review fiscal federalism more broadly.

The Alberta Next Panel is calling for changes to fiscal federalism. Reforms to equalization are clearly needed—and it’s worth exploring the potential of an Alberta pension plan. Indeed, both of these changes could deliver benefits.