The board of directors of Alberta’s Agriculture Financial Services Corporation has been let go following an investigation into the expenses of senior executives and the corporation’s procurement practices.
Some of the board’s expenses related to travel, meals and hospitality were not necessary for AFSC business, the Alberta government said in a media release Monday.
The province said senior executives accepted gifts, such as event tickets, meals and golf outings from vendors. Costs related to AFSC corporate events were also covered by vendors, the government said.
Agriculture Minister Oneil Carlier said the review found that between January 2013 and December 2015, three senior executives incurred air and hotel costs in excess of $170,000.
AFSC’s requirements for fair, open, competitive or transparent procurement processes were not met for more than half the vendors examined, the province added.
“I am troubled by these findings,” Carlier said.
“The report’s findings point to a culture of entitlement in the last administration that Albertans firmly rejected in the election, a culture of entitlement that will not be tolerated by this government.”
The examination was conducted by Alberta’s Chief Internal Auditor following an anonymous tip last November.
Three senior executive members of the AFSC, which provides insurance and lending to the agriculture industry, have been relieved of active duty with pay until further review is done.
“I have lost the confidence in that board doing what they’re supposed to do and that was to have the oversight for the executives, approving their expenses and things. That was part of the board’s responsibility and, in my opinion, it failed in that responsibility,” Carlier said.
The auditor’s report has been turned over to the RCMP to determine if further action is required.
Carlier would not release the names of the members who were let go, but said the president and managing director, chief operating officer and vice president of innovation and product development were let go.
“At this time, because the report has been issued to the RCMP, we’re going to leave it up to the RCMP.”
The auditor concluded that board oversight of senior executive expenses, procurement activities and the AFSC code of conduct needs to be strengthened.
The board has been replaced with an interim board made up of senior Alberta government employees.
Ed Knash, vice president of business and agriculture with ATB Financial, has been appointed interim CEO.
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