The Auditor General's Report on the Aiyawin Corporation, a housing corporation funded by the provincial government, shows clearly that the concerns which I raised inside and outside the legislature in the fall of 2003 were well founded.
The Auditor General's report shows that there were reasons to be concerned as early as the 1999/2000 fiscal year. The Auditor General expresses concerns about excessive payments to Board Members, and in that year one of the board members was payed $3,900. This was the first of many red flags.
On January 23, 2002 the Board of Aiyawin granted "exclusivity" to the brother (the exclusive contractor) of the general manager of Aiyawin. By September 2002, there were allegations coming forward to the Manitoba government of major problems at Aiyawin.
Basically, the government did not act. Through the government's failure to act when it first learned of major problems in September 2002, the housing corporation was put in a disastrous downward spiral.
Up until the 2001/2002 fiscal year the Aiyawin Corporation had mainted prudent replacement reserves of about $800,000. The bad mismanagement at Aiyawin led to the rapid expenditure of these reserves so that by the end of the 2003/2004 fiscal year, they were down to about $72,000.
And still the government did nothing.
In late fall of 2003, Don Dorion, who had been working at Aiyawin, approached me and others. The result was stories by the CBC I-Team, and questions in the legislature to the government. Yet, still the government hesitated to act.
By the time the government acted in June 2005, it was 30 months after they should have acted - far too late - and the Auditor quite rightly is very critical of the NDP for their incompetence and poor management. It is sad that we are seeing so much of this type of incompetence. It is time to replace this government.