Clean deal
Internal auditor comfortable with Lahm Ridge lease

Jeff Colbourne
Northern News Services

NNSL (Nov 02/98) - The Lahm Ridge Tower lease extension was on the up and up and didn't warrant an audit.

That's according to Lew Voytilla, the GNWT's internal auditor with the financial management board, who was told the lease was "flagged" by a government committee doing an GNWT office space review last fall.

Voytilla testified last Thursday at the public inquiry dealing with the complaint of conflict of interest against Premier Don Morin.

Voytilla told the inquiry he met with Public Works and Services Minister Ken Lovely to discuss the basis for the renewal and to see if there was any reason for concern.

"What I would be concerned with is to make sure that any extension of any contract was done in accordance with the Financial Administration Act and the contract regulations pursuant to that act," said Voytilla.

Knowing Lahm Ridge was flagged, Voytilla met with Lovely and finance minister John Todd, and had another meeting later with Lovely to see if an audit was needed.

But, Voytilla quickly concluded proper procedures and processes were followed in the extension of the lease.

"From my standpoint (I) saw no irregularity in the way the extension was handled, pursuant to our policies and regulations. I was comfortable that value for money was achieved and that was the end of the matter from my standpoint," said Voytilla, who is also comptroller general with the financial management board secretariat and president of the Aurora Fund.

Commission counsel, Kent Davidson, asked Voytilla if he could recall what Lovely said in the meetings.

Voytilla said he could not recall details of the lease extension, like how long the lease was in an over-hold position, who the landlord was and if the building was sold.

"What way did you make the assessment that he followed the regulations. On what information did you make that conclusion?" asked Davidson.

"I think you indicated to me that the discussion was general in nature," he added.

"It was general enough to give me comfort that he followed the rules. The rules are not thick. The rules are quite clear and straight forward," responded Voytilla.

"What did he tell you, that the lease was in accordance with the Financial Administration Act?" asked Davidson.

Voytilla again said he had little recollection of specific points from the meetings.

Conflict of interest commissioner Anne Crawford, following questioning by commission counsel and other lawyers, asked Voytilla if notes, reports or records were kept of the meetings with Lovely and Todd.

"No, those meetings we held were oral. I did not formally document the meetings or place them on file," said Voytilla.

Crawford asked if he made a report to anyone. "What about the minister of public works? His deputy minister? His department? Did they ask you for a report or receive one?"

"No. No they did not ask for a report," said Voytilla.