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Alberta

AUDITOR GENERAL MUST INVESTIGATE CASH BONUS SCHEME: NDP

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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:

  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?

——

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

 

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Alberta

‘Weird and wonderful’ wells are boosting oil production in Alberta and Saskatchewan

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From the Canadian Energy Centre

By Deborah Jaremko

Multilateral designs lift more energy with a smaller environmental footprint

A “weird and wonderful” drilling innovation in Alberta is helping producers tap more oil and gas at lower cost and with less environmental impact.

With names like fishbone, fan, comb-over and stingray, “multilateral” wells turn a single wellbore from the surface into multiple horizontal legs underground.

“They do look spectacular, and they are making quite a bit of money for small companies, so there’s a lot of interest from investors,” said Calin Dragoie, vice-president of geoscience with Calgary-based Chinook Consulting Services.

Dragoie, who has extensively studied the use of multilateral wells, said the technology takes horizontal drilling — which itself revolutionized oil and gas production — to the next level.

“It’s something that was not invented in Canada, but was perfected here. And it’s something that I think in the next few years will be exported as a technology to other parts of the world,” he said.

Dragoie’s research found that in 2015 less than 10 per cent of metres drilled in Western Canada came from multilateral wells. By last year, that share had climbed to nearly 60 per cent.  

Royalty incentives in Alberta have accelerated the trend, and Saskatchewan has introduced similar policy.

Multilaterals first emerged alongside horizontal drilling in the late 1990s and early 2000s, Dragoie said. But today’s multilaterals are longer, more complex and more productive.

The main play is in Alberta’s Marten Hills region, where producers are using multilaterals to produce shallow heavy oil.

Today’s average multilateral has about 7.5 horizontal legs from a single surface location, up from four or six just a few years ago, Dragoie said.

One record-setting well in Alberta drilled by Tamarack Valley Energy in 2023 features 11 legs stretching two miles each, for a total subsurface reach of 33 kilometres — the longest well in Canada.

By accessing large volumes of oil and gas from a single surface pad, multilaterals reduce land impact by a factor of five to ten compared to conventional wells, he said.

The designs save money by skipping casing strings and cement in each leg, and production is amplified as a result of increased reservoir contact.

Here are examples of multilateral well design. Images courtesy Chinook Consulting Services.

Parallel

Fishbone

Fan

Waffle

Stingray

Frankenwells

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Alberta

Alberta to protect three pro-family laws by invoking notwithstanding clause

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From LifeSiteNews

By Anthony Murdoch

Premier Danielle Smith said her government will use a constitutional tool to defend a ban on transgender surgery for minors and stopping men from competing in women’s sports.

Alberta Premier Danielle Smith said her government will use a rare constitutional tool, the notwithstanding clause, to ensure three bills passed this year — a ban on transgender surgery for minors, stopping men from competing in women’s sports, and protecting kids from extreme aspects of the LGBT agenda — stand and remain law after legal attacks from extremist activists. 

Smith’s United Conservative Party (UCP) government stated that it will utilize a new law, Bill 9, to ensure that laws passed last year remain in effect.

“Children deserve the opportunity to grow into adulthood before making life-altering decisions about their gender and fertility,” Smith said in a press release sent to LifeSiteNews and other media outlets yesterday. 

“By invoking the notwithstanding clause, we’re ensuring that laws safeguarding children’s health, education and safety cannot be undone – and that parents are fully involved in the major decisions affecting their children’s lives. That is what Albertans expect, and that is what this government will unapologetically defend.”

Alberta Justice Minister and Attorney General Mickey Amery said that the laws passed last year are what Albertans voted for in the last election. 

“These laws reflect an overwhelming majority of Albertans, and it is our responsibility to ensure that they will not be overturned or further delayed by activists in the courts,” he noted. 

“The notwithstanding clause reinforces democratic accountability by keeping decisions in the hands of those elected by Albertans. By invoking it, we are providing certainty that these protections will remain in place and that families can move forward with clarity and confidence.”

The Smith government said the notwithstanding clause will apply to the following pieces of legislation:

  • Bill 26, the Health Statutes Amendment Act, 2024, prohibits both gender reassignment surgery for children under 18 and the provision of puberty blockers and hormone treatments for the purpose of gender reassignment to children under 16.

  • Bill 27, the Education Amendment Act, 2024, requires schools to obtain parental consent when a student under 16 years of age wishes to change his or her name or pronouns for reasons related to the student’s gender identity, and requires parental opt-in consent to teaching on gender identity, sexual orientation or human sexuality.

  • Bill 29, the Fairness and Safety in Sport Act, requires the governing bodies of amateur competitive sports in Alberta to implement policies that limit participation in women’s and girls’ sports to those who were born female.”

Bill 26 was passed in December of 2024, and it amends the Health Act to “prohibit regulated health professionals from performing sex reassignment surgeries on minors.”

Last year, Smith’s government also passed Bill 27, a law banning schools from hiding a child’s pronoun changes at school that will help protect kids from the extreme aspects of the LGBT agenda.

Bill 27 will also empower the education minister to, in effect, stop the spread of extreme forms of pro-LGBT ideology or anything else to be allowed to be taught in schools via third parties.

Bill 29, which became law last December, bans gender-confused men from competing in women’s sports, the first legislation of its kind in Canada.  The law applies to all school boards, universities, and provincial sports organizations. 

Alberta’s notwithstanding clause is like all other provinces’ clauses and was a condition Alberta agreed to before it signed onto the nation’s 1982 constitution.

It is meant as a check to balance power between the court system and the government elected by the people. Once it is used, as passed in the legislature, a court cannot rule that the “legislation which the notwithstanding clause applies to be struck down based on the Charter of Rights and Freedoms, the Alberta Bill of Rights, or the Alberta Human Rights Act,” the Alberta government noted.

While Smith has done well on some points, she has still been relatively soft on social issues of importance to conservatives , such as abortion, and has publicly expressed pro-LGBT views, telling Jordan Peterson earlier this year that conservatives must embrace homosexual “couples” as “nuclear families.” 

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