The provincial auditor says that that the province of Saskatchewan is not doing enough to reduce taxpayers’ exposure to increase land values when acquiring land.
The auditor also said in the report that they found no signs of conflict of interest for any parties involved including Minister Bill Boyd.
Global Transportation Hub, a Crown corporation, bought 41 acres of land at a cost of $1.2 million in February 2013 and in March 2014 the province completed the transaction by purchasing 204 acres of land west of Regina at a cost of $21 million.
“Our Office recommends that the Government explore alternate approaches to optimize the timing of land acquisitions for major public improvements,” says Provincial Auditor Judy Ferguson.
“In addition, it must balance keeping the public informed, managing public resources prudently, and providing landowners with amounts reflecting fair value.”
READ MORE: Saskatchewan government fends off NDP call for judicial inquiry on land deal
In the report released Thursday the Provincial Auditor made two recommendations to the GTH Authority and eight recommendations to the Ministry of Highways and Infrastructure (MHI).
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The auditor said that a lack of co-ordination between the GTH and MHI led to delayed decisions on buying land during a period of time of rapidly escalating land values, that these delays contributed to buying this land at a significantly higher price and the province did not take sufficient and timely action to mitigate its – and ultimately the taxpayers – exposure to increase in land values.
“We need to take responsibility for the fact that there was not proper coordination between the two ministries involved, or the two agencies of government in the acquisition of land, and as a result we paid too much for the land.” Premier Brad Wall said.
“Government needs to strike a careful balance between safeguarding taxpayers’ dollars, ensuring landowners are treated fairly and keeping the public informed. The Auditor has identified some deficiencies in our past practices and we will take steps to address them, based on her recommendations.”
The report added that GTH minister Bill Boyd got involved in the land purchase in 2013 and had become concerned about the rapid rise of land prices around Regina and the GTH’s and MHI’s ability to buy the parcels in the near term.
Opposition leader Trent Wotherspoon said the report in “troubling”, citing lack of documentation in some areas, the GTH lacking a business plan for buying the land, and the lack of communication between the GTH and MHI on responsibilities of procuring land.
The NDP is continuing their call for a judicial review of the transactions, saying “breach of trust” may be an issue.
“All I know at this point is that millions of dollars have been wasted through unacceptable processes. As far as are there other elements of breach of trust at play? That’s something for authorities would need to determine,” Wotherspoon said.
“While all agreed on the importance of buying the East Parcels and were aware of the rapidly escalating land prices, no agency had clear responsibility for leading the purchase of them,” the Provincial Auditor concluded.
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