Executive Council
February 20, 2017

Provincial Government Comments on Auditor General’s Report

“I thank the Auditor General for his thorough review and comprehensive analysis of the issues surrounding the departure of Ed Martin from his position as Chief Executive Officer of Nalcor Energy. The results of the Auditor General’s review confirm the information provided to the people of the province in 2016. The Auditor General has determined that government did not direct Nalcor’s Board of Directors regarding the contract of Ed Martin. The contractual obligations owed to the former CEO were negotiated and signed under the former administration. The Auditor General has now concluded that the severance payments provided by Nalcor Energy were appropriate under that contract.”
- The Honourable Dwight Ball, Premier of Newfoundland and Labrador

Since December 2015, the Provincial Government has taken steps to increase transparency and improve governance of Nalcor. Stan Marshall, a world class CEO, is at the helm of Nalcor Energy. There is a stellar and expanded Board of Directors at Nalcor Energy headed by globally successful Newfoundlander and Labradorian, Brendan Paddick. The Provincial Government has secured a commitment from the Government of Canada to provide an additional $2.9 billion in loan guarantee support for the project. A long-standing issue with contractor Astaldi has been settled. We have also engaged with the Aboriginal communities as we work together to address concerns and advance the project.

“As Minister of Natural Resources, I am focused on strengthening the governance of Nalcor Energy and the performance of key projects – specifically the Muskrat Falls Project, which was over budget and behind schedule before our government took office. I will continue to strengthen and improve the performance of Nalcor Energy and its lines of business for the benefit of Newfoundlanders and Labradorians.”
- The Honourable Siobhan Coady, Minister of Natural Resources

The Auditor General’s report is available at www.ag.gov.nl.ca/ag/reports.htm

- 30 -

Media contacts:

Michelle Cannizzaro
Director of Communications
Office of the Premier
Diana Quinton
Director of Communications
Department of Natural Resources
709-729-5282, 631-8155

2017 02 20                              2:45 p.m.