The title of the report is eye-glazingly boring, and it鈥檚 several months old.
But it continues to fascinate certain quarters of the legislature. And it prompted one of the more vigorous tongue-lashings ever delivered in a legislature committee.
鈥淎n Audit of B.C. Liquor Distribution Branch Directly-Awarded Contracts鈥� was completed by the auditor general and released publicly last summer. It got a brief burst of attention 鈥� one-day coverage in the media.
But when it arrived at the legislature public accounts committee two weeks ago, it became clear MLAs were still interested in the findings.
The audit appears to have started after a whistleblower told the independent office about the inordinate number of directly awarded contracts the Liquor Distribution Branch was signing. Auditors counted 74 contracts the branch made over a two-year period, and found a dismal rate of compliance with the rules.
Public agencies are supposed to solicit competitive bids in most cases. Direct awards have to meet specified conditions and the reasons for issuing them have to be included in the contract.
The audit found millions of dollars worth of contracts were awarded without citing any justification for not going to tender.
More than half did not demonstrate any exceptional circumstances. Almost three-quarters didn鈥檛 meet the requirement of showing they were impartial and non-preferential awards.
One small example: The Liquor Distribution Branch needed promotional swag for its annual staff appreciation day. But it didn鈥檛 have enough time to go to tender. So it justified a $57,000 contract by declaring it an 鈥渆mergency.鈥� The auditor general noted: 鈥淲hen an event is annual, it is predictable.鈥�
So there was no emergency.
In another case, an $8.5-million contract for software and support was awarded by open bid. But later on, it was hiked to $14.2 million with no rationale, analysis or justification on file.
Maybe that鈥檚 a good deal, but there鈥檚 no way of telling, because there鈥檚 no explanation of the value for money, and no proof on file the supplier was the only source available.
The Liquor Distribution Branch had a ready response to the findings. It said it was already examining procurement policies, and a lot of the contracts did have the required justifications, they just weren鈥檛 included in the files. It said a big retraining effort was underway and all the auditor general鈥檚 recommendations would be followed up on.
That鈥檚 where it sat until two weeks ago, when the public accounts committee met to consider it.
Differences of opinion on accounting principles there are usually expressed in genteel terms.
But octogenarian Liberal MLA Ralph Sultan was in a rip-snorting mood and ignored the protocol.
Addressing Liquor Distribution Branch CEO Blain Lawson directly, he said: 鈥淚鈥檝e sat on this committee for many, many years. This is about the most damning report I think I鈥檝e ever seen.
鈥淚t does not reflect well on your performance of your duties. I think it鈥檚 an embarrassment.鈥�
Sultan said there鈥檚 always a temptation and opportunity for 鈥渃onnivance鈥� in purchasing offices, and when there鈥檚 no competitive bidding, the possibilities grow.
He asked Lawson directly: 鈥淲ere you unaware of these policies?鈥�
Lawson acknowledged he didn鈥檛 spend enough time drilling into it, but said there was a lot on his plate, with cannabis legalization taking shape over that period.
鈥淭here has to be trust within the organization that people are performing what we鈥檝e hired them to do. In some instances, as is related here, it just didn鈥檛 occur.
鈥淭he accountability for that lies on me. So yeah, I鈥檓 embarrassed to be sitting here.鈥�
Sultan responded curtly: 鈥淲ell, you should be.鈥�
He closed with a hope that there鈥檚 follow-up to see 鈥渨hether you鈥檝e discovered the virtues of competitive bidding.鈥�
Lawson said later the Liquor Distribution Branch has done only one direct award since the audit, and the count is now on the agenda for senior staff鈥檚 weekly meeting.
鈥淲e don鈥檛 want to be back here. No offence.鈥�
The beat-down was over by that point, and considered successful.
Sultan鈥檚 gentlemanly, grandfatherly presence has added something special to the legislature for years.
He enjoyed another wave of goodwill recently when he announced he is retiring. But he鈥檚 still got time to serve, so don鈥檛 tick him off when he鈥檚 scrutinizing public spending.
