B.C.’s finance minister says he wants regular audits of MLA constituency offices and a move away from bulk monthly payments of public money, after an alleged fraud at a taxpayer-funded MLA’s office in Victoria.
Mike de Jong said there are “structural changes” that can be made to prevent fraud at MLA offices, and he intends to reconvene an all-party management of MLAs next week to discuss reforms.
“I have long taken the view that, for their own protection, MLA’s offices should be subject to a pretty regular and rigorous audit process,” he said.
MLAs receive $119,000 a year for constituency office expenses, which is paid out in monthly instalments. MLAs can spend the money on staff salaries, office supplies, advertising and other expenses as they see fit, with little oversight, no routine audits and virtually no approval from the legislature. Any money left over goes into bank accounts held by MLAs, which, until this month, have been largely unreported to the legislature.
Critics have called for changes to the bulk payment system, so that the legislature holds the money and only pays out when expenditures happen. Others, such as independent Delta South MLA Vicki Huntington’s office, have urged caution, noting the new system would need to ensure more work isn’t added to constituency office staff and that it’s accompanied by proper training and tools.
De Jong said reforming the bulk payment system might be the solution, with any leftover money put in a central bank account accessible by legislative financial officials. “That may well be the best way to protect the taxpayer’s interest and minimize administrative costs as well.”
As much as $120,000 in taxpayer money allegedly went missing from Victoria-Swan Lake NDP MLA Rob Fleming’s constituency office between 2009 and 2015, it was revealed last week. Marni Offman, Fleming’s former assistant, was charged with fraud, theft and cheque forgery.
Fleming said he was deceived, and that’s why he didn’t notice for such a long period of time.
De Jong said he would like to believe most MLAs would notice when a large sum of money went missing over a multi-year period but added that he wasn’t trying to criticize Fleming.
“If someone is resolved to defraud someone, they can be awfully imaginative about how they’d do it. But ensuring doing so is as difficult as possible and the taxpayers are protected continues to be a worthwhile objective,” he said. “I think there are always steps we can take to better protect the taxpayer.”
NDP members on the legislature’s all-party management committee have said they are open to discussing reforms.
