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Senate spending scandal: Was $23M audit worth it? Check back in 34 years

WATCH: There have been calls to abolish the Senate for years, but it requires a constitutional change plus the consent of all the provinces. Not all of them agree, but Global News has learned reform may be a viable option. Mike Le Couteur explains.

OTTAWA — It will take the Senate more than 34 years to cover the cost of the auditor general’s audit if its members save every penny flagged in the report.

In the end, taxpayers have paid $23.5 million to find out where members of the upper chamber may have saved a little less than $1.4 million over a two-year period.

The key phrase there is “may have”: The roughly $977,000 flagged includes some claims the auditors are sure broke the rules, mixed with some that may prove kosher.

READ MORE: 5 things to know about the Senate expenses audit

The balance of the potential two-year savings Ferguson noted in his report, $400,000, would come from following his recommendations to crack down on per diem claims, ensure senators and their staff have roaming packages for their phones when travelling outside of the country and stick to standard holiday cards the Senate provides rather than ordering custom cards.

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Divide the cost of the audit by the potential annual savings, and senators are looking at more than three decades of belt-tightening before they save enough to cover the cost of the audit they ordered.

The spending watchdog told reporters he wasn’t happy the office had to spend $23.5 million, but suggested the state of the Senate all but demanded it.

“If the Senate had in place a regular audit regime, had the transparency and accountability that we have been saying is missing, if that had been in place, we wouldn’t have had to put that many resources into the audit,” Ferguson said.

“So I’m not happy we had to do it, but I am convinced that the audit was necessary and that in the end, what we produced was worth the amount of effort we put into it.”

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Perhaps, as the auditor general said after tabling the long awaited report, the savings go beyond the dollar amount flagged for review and repayment.

READ MORE: Senators charge for golf, wedding celebrations and booking personal appointments

“I think [the audit] is going to result in much more tightening up of the expenses of the senators,” he said, adding he anticipates seeing a behavioural change as a result of the audit.

The fact his office had control over the audit and the fact the final report was released in full are both signs of increased transparency and accountability to come, Ferguson said.

Political observers aren’t criticizing the sum spend on the audit; they’re looking at the Senate to make the cost worthwhile.

READ MORE: Senators invoke Duffy trial as they push back against auditor general’s report

“If there’s one thing we’re OK spending money on, it’s holding powerful people to account,” said Aaron Wudrick, federal director for the right-leaning Canadian Taxpayer Federation.

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“These are the people who pass the laws, who are in the position to abuse the law, so we don’t feel badly spending the money making sure they’re following the rules.”

If the Senate ignores the issues raised and recommendations presented in the report, however, the $23.5 million could prove a waste of money, he said.

“They’ll have to adopt most, if not all of the recommendations, including having third-party oversight,” Wudrick said.

WATCH: The Senate audit has value beyond the dollars flagged, Ferguson says

The Canadian Taxpayer Federation has suggested senators to post copies of receipts online, in much the same manner as municipal politicians in Toronto and provincial ones in Alberta.

“It’s not going to stop every incident of abuse, but it’s going to be a major disincentive,” Wudrick said. “The whole idea is to make them always be thinking about being vigilant. If they do, we won’t have to through this exercise all over again.”

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NDP ethics critic Charlie Angus told reporters Canadians want assurance the institutions representing them are not “riddled with corruption,”

“We have to get something out of this,” he said. “Not just that we spent [$23.5] million.”

Senate audit by the numbers

116

Senators examined

80,000

Expense claims examined

30

Incurred questionable expenses

9

Files recommended for reference to the RCMP 

21

Files recommended for review by a Senate committee 

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