Alberta Legislature

By Dori Modney with files from the Canadian Press

Auditor General finds $2.3 Million misuse of funds by Alberta Energy Regulator

Oct 4, 2019 | 12:50 PM

EDMONTON — In a scandal that has left taxpayers about $2.3 million out of pocket, a provincial government investigation has concluded the former head of the Alberta Energy Regulator (AER) grossly mismanaged public funds

The findings were announced on Friday (Oct 4) by Alberta’s auditor general Doug Wylie, public interest commissioner Marianne Ryan and ethics commissioner Marguerite Trussler.

An investigation, stemming from a public complaint, revolved around the activities of Jim Ellis and other executives with the energy regulator, between 2017 and 2018.

The report states Ellis and other executives set up a non-profit agency to sign contracts around the globe to advise on best regulatory practices.

The plan was for the agency to be spun off from the regulator and go independent, but the report says the reason behind that was to provide future employment for Ellis and others.

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According to the report, Ellis and others worked to get the agency off the ground, even though it was not part of the regulator’s mandate and potentially put it in conflict with the oil companies it was overseeing.

The AER issued a public statement following release of the report.

Minister of Environment and Parks Jason Nixon and Minister of Energy Sonya Savage issued the following statement on the reports released by the Auditor General, Ethics Commissioner and the Public Interest Commissioner on previous leadership of the Alberta Energy Regulator (AER):

“Recent reports from the Auditor General, Ethics Commissioner and Public Interest Commissioner reveal a disturbing number of unscrupulous activities within the Alberta Energy Regulator’s leadership over a number of years from 2015 to 2018.

“Public servants are beholden to the taxpayers they serve, and we cannot condemn the practices noted in these reports strongly enough. Our government was elected on a promise to reform the AER, which is precisely why we have already taken action, launching a review of the AER in August and replaced the board in the same month.

“Leadership starts at the top, and Albertans need to trust that their regulator will operate effectively, efficiently and transparently with an eye to improving outcomes for our resource industries, landowners and the environment. These reports cite several troubling and unacceptable examples of conduct that demonstrate that the focus of the AER’s previous leaders clearly lay elsewhere, a clear betrayal of the organization’s obligations to Albertans.

“The recommendations contained within these reports will inform our government’s review of the AER, and we would expect the interim board to implement these recommendations.”