EDMONTON - Two Alberta government managers and a manager at a provincial arm’s length agency are facing disciplinary action after they committed “gross mismanagement of public funds” by manipulating the awarding of public contracts worth more than $100,000 each.

Two managers from the department of Advanced Education and one manager in Alberta Innovates-Technology Futures manipulated a contract procurement process on eight different occasions to make sure their preferred candidates came out on top, Alberta public interest commissioner Peter Hourihan revealed in an unprecedented investigative report Thursday.

That manipulation amounted to “gross mismanagement of public funds” under the whistleblower act. Hourihan found the managers also directed others to commit wrongdoing and in some cases investigators were provided with fabricated documentation as proof the appropriate procedures were followed.

“This too was intentionally deceitful,” Hourihan wrote in his report, which recommended the government take disciplinary action.

Service Alberta Minister Deron Bilous said the employees will face repercussions for the bid rigging, but he wouldn’t provide any details or confirm if they have been fired.

“There is disciplinary action that is taking place, but I can’t get into specifics,” Bilous said. The names of the managers were not released.

Bilous also wouldn’t say if the investigation could be forwarded to law enforcement for review.

The scheme involved eight different Internet technology contractor positions the department and agency needed to fill. The managers involved assigned higher scores to their preferred candidates to help propel them to the top of the hiring list, the investigation revealed.

The investigation was launched after a whistleblower contacted Hourihan’s office with the allegations on several occasions between October and December 2014.

“Procurement of government services is extremely important and there’s an expectation and a requirement for there to be a level playing field,” Hourihan said in an interview. “That’s why this is important. Everybody expects to have fair shot at getting the opportunity to fulfil government contracts.”

Hourihan’s investigation noted none of the employees acted out of personal gain, “but rather to simplify the hiring process and ensure their preferred candidates were successful in the contracting process.”

Hourihan’s report outlined several recommendations to prevent similar problems in the future, but his office noted it lacks the legislative authority to enforce an measures. The recommendations include:

- modifying procurement policies to ensure appropriate safeguards are in place;

- providing training to ensure employees understand their responsibilities and can identify and address ethical dilemmas;

- implementing an evaluation and selection audit schedule.

Bilous said the government has accepted the recommendations and is working to implement a governmentwide procurement accountability framework. The Advanced Education department is expected to provide a progress report to Hourihan by the end of October, he added.

“We want to ensure that first of all, contracts go through a proper process and that we’re awarding and appointing folks based on merit, not based on who they know or if they have a membership card,” Bilous said.

The whistleblower act is set to be reviewed by an all-party accountability and ethics legislative committee created by the government this spring. The committee has yet to schedule its first meeting.

Wildrose critic Jason Nixon said Albertans deserve more details on the consequences the three managers face.

“Albertans deserve a government that will clean up a system of cronyism that developed under the past government — not sweeping more under the rug,” he said in a statement.

mibrahim@edmontonjournal.com

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