'Vague' language hid secret MHA payments: audit

Members of Newfoundland and Labrador's house of assembly quietly gave themselves a raise in 2004, just days after the legislature imposed a wage freeze on the civil service, an audit has disclosed.

A bitter strike that launched April 1 that year was resolved in May when government— worried about what it described as a $1-billion shortfall — imposed a wage freeze.

Eight days after that decision, however, members of the legislature's bipartisan internal economy commission (IEC) voted to give themselves an increase in their allowances, worth $2,875 each.

Auditor General John Noseworthy found that on top of the vote, the legislators worded their decision — described in minutes as "a proposal" — in order to not attract public attention.

Noseworthy criticized the MHAs for writing minutes "so vague" that a reader would never know a pay increase had been approved.

Noseworthy learned from John Noel, the former clerk of the legislature, that this was not uncommon.

"In prior years, the IEC suggested to him that the IEC minutes should be kept vague on financial matters such as additional allowances to members," the audit says.

Each member was allowed to collect a cheque, without even providing receipts.

Beth Marshall, a Progressive Conservative member for Topsail and a former auditor general herself, was a member of the IEC at the time.

However, she voted against the decision, and never collected the money.

"At that time, I indicated to the committee that I would not be taking it," Marshall told CBC News.

"I made it quite clear in the committee meeting that I would not be taking it."

Premier turned down extra payment

Neither did Premier Danny Williams.

"From my own perspective, after it was approved, I did not use that particular amount of money personally," Williams said.

The other 46 members of the house, though, did take the extra payment.

Other members of the IEC at the time were Speaker Harvey Hodder, former finance minister Loyola Sullivan, former natural resources minister Ed Byrne, Tory Roger Fitzgerald, and Liberals Kelvin Parsons and Percy Barrett.

Both Byrne and Barrett were named last year in Noseworthy's reports into excessive payments of constituency allowances to MHAs. Byrne, who was forced to resign his cabinet seat last summer, quit politics altogether effective Jan. 1.

Noseworthy said it is unacceptable that remuneration increases to politicians are not transparent.

"When we went through the minutes and looking at the commission reports that are tabled in the house of assembly, there is really no reference to that," Noseworthy said, referring to increases.

"You can never see it."

Hodder said he never participated in any instructions to Noel to use vague language.

However, he stands by the decision to give MHAs more money.

"They were out of funds," he said.

"They were carrying their constituency expenses out of their own pockets and I guess admitting that they hadn't balanced their accounts properly."

The system of constituency allowances has been controversial since June, when Noseworthy began tabling reports into excessive payments. So far, five politicians have been named as having together received about $1.6 million more than they were due.

Noseworthy's reports have triggered a Royal Newfoundland Constabulary investigation and a separate review by Newfoundland Supreme Court Justice Derek Green on how best to remunerate politicians.

Noseworthy's audits also found questionable use of legislative funds on memorabilia like fridge magnets. Earlier this year, he found two cases of double-billings of constituency allowances — prompting the resignation of Tory Kathy Goudie — and is currently studying how MHAs have used their allowances over the years.