Saskatchewan Flags Crown Corporations Fund Misuse

Olivia Carter
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In a concerning development that raises questions about fiscal oversight, Saskatchewan’s Provincial Auditor has revealed significant financial discrepancies across several Crown corporations, with misappropriated funds totaling over $31,000 during the 2023-24 fiscal year. This discovery comes amid heightened scrutiny of public sector financial management throughout the province.

The latest report, released Tuesday by Provincial Auditor Tara Clemett, details troubling instances of fund mismanagement at four Crown entities, including a case where an employee at the Saskatchewan Health Authority manipulated financial records to divert $11,700 into personal accounts.

“These incidents, while representing a small percentage of overall Crown corporation expenditures, point to concerning gaps in financial controls that must be addressed immediately,” said Clemett during her presentation to the Standing Committee on Crown and Central Agencies.

The Saskatchewan Liquor and Gaming Authority (SLGA) reported the largest single loss, with $13,400 disappearing through what investigators described as “sophisticated manipulation of inventory records” at a Regina retail location. Similarly, SaskPower identified an employee who had submitted $4,300 in fraudulent expense claims over an 18-month period.

Perhaps most alarming was a scheme at SaskEnergy where an employee redirected $2,400 in customer payments to a personal account by manipulating the utility’s payment processing system.

Minister Responsible for Crown Investments Corporation Dustin Duncan acknowledged the findings while emphasizing that internal controls ultimately detected these irregularities. “We take any misuse of public funds extremely seriously,” Duncan told reporters at the Legislative Building. “Each Crown corporation has already implemented enhanced monitoring protocols to prevent similar incidents.”

Opposition critics, however, have seized on the report as evidence of inadequate oversight. NDP Crown Corporations critic Aleana Young pointed to what she called “a pattern of financial negligence” under the current administration.

“When Saskatchewan families are struggling with high costs and expect their tax dollars to be managed responsibly, this government has allowed repeated breaches of financial trust,” Young said during Question Period.

Financial governance experts note that Crown corporations face unique challenges in balancing operational flexibility with public accountability. According to University of Saskatchewan public policy professor Martin Edwards, “Crown corporations operate in a complex space between government oversight and corporate independence, which can create vulnerabilities in financial controls if not carefully managed.”

All affected Crown corporations have initiated recovery proceedings against the individuals involved, with criminal charges pending in two cases. The Provincial Auditor’s report indicates that approximately $8,700 of the misappropriated funds have been recovered thus far.

This revelation comes as Saskatchewan’s government faces growing pressure over Crown corporation performance and transparency. The Provincial Auditor has recommended comprehensive reviews of financial control systems across all Crown entities, with quarterly verification procedures for high-risk transaction areas.

As Saskatchewan taxpayers absorb this news, a critical question emerges: How can the province strengthen its financial governance structures to ensure Crown corporations maintain the rigorous financial accountability citizens expect, while still delivering essential services efficiently?

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