Nalcor exec linked to 'unprincipled steps' with Muskrat Falls remains on N.L. Hydro team

A Nalcor executive who's been linked to the controversial Muskrat Falls project for 15 years, and was among those who took "unprincipled steps" to get the project approved, remains a key member of the new-look and smallerN.L. Hydro executive that was announced earlier this month.

Gilbert Bennett, who was prominently named last year in the final report of the public inquiry into the generating and transmission project, which is years behind schedule and billions over budget, is now vice-president of power development with N.L. Hydro.

Previously, he was executive vice-president of power development with Nalcor, a Crown-owned corporation responsible for managing and developing the province's energy resources.

Despite his slimmed-down title, Bennett's annual salary of $340,000 remains unchanged, and is significantly higher than the maximum of $286,000 under a new compensation structure.

"Gilbert [Bennett]will no longer be eligible for further salary increases, as he is above the new executive compensation VP scale," a Hydro spokesperson wrote in a statement to CBC News.

• N.L. Hydro cuts 7 executive positions amid Nalcor integration, eliminates bonuses

Jennifer Williams, interim president and CEO of N.L. Hydro,declined an interview request to explain why Bennett was retainedwhile several other Nalcor executive vice-presidents were sacked.

Bennett was a key deputy to former Nalcor CEO Ed Martin for many years prior to Martin's controversial departure in 2016, and again under Stan Marshall, who retired as Nalcor CEO five months ago.

• Scathing Muskrat Falls inquiry report lays blame on executives
• 'We wear it': Gilbert Bennett reluctantly admits Nalcor responsible for Muskrat missteps

With the project spiralling out of control, former premier Dwight Ball called a public inquiry in 2017, with Justice Richard LeBlanc as the commissioner.

After months of testimony and dozens of witnesses, and a price tag of $16 million, LeBlanc released his final report called Muskrat Falls: A Misguided Project in March 2020, and it was not kind to Martin or Bennett.

Inone of the most damning sections of the report, LeBlancsaid Martin, Bennett and members of the project management team "frequently took unprincipled steps" to help secure project approval in late 2012.

"They concealed information that would undermine the business case reported to the public, to [the provincial government]and to Nalcor's board of directors," LeBlanc wrote.

LeBlanc also questioned Bennett's suitability for the job, writing that he "had no prior experience in hydroelectric or transmission line projects and had no experience in construction management. He had not worked on any megaprojects prior to joining Nalcor."

Following the release of LeBlanc's report, then Nalcor CEO Stan Marshall refused to hold Bennett accountable for the missteps that created what Marshall himself had described as a boondoggle.

When questioned at the time, Marshall said he was"not interested in the history," but in finishing the project in the best way possible.

"Do I say,'OK, you're gone,' to cut off our nose to spite our face?'" Marshall said at the time. "My duty is to get this thing finished in the best way possible for the people of this province. And that's exactly what I'm going to do. If I have to defend some of these people to do that, that's what I'm going to do."

Big savings in executive compensation

Williams announced on Nov. 2 that seven executive positions had been cut as part of a streamlining process associated with the integration of Nalcor into N.L. Hydro.

The shakeup follows a decision by the provincial government in June to dismantle Nalcor, and move its operations under Hydro, which was previously a subsidiary of Nalcor.

The Nalcor brand had become a lightning rod for criticism because of its connection to Muskrat Falls, and public outrage over annual performance bonuses of up to 20 per cent of an executive's salary, and 30 per cent for the CEO.

Those bonuses have since been eliminated, along with vehicle allowances.

The restructuring has seenthe number of executives reduced from 18 to 11,resulting in $2.2 million in annual compensation savings, according to Hydro, and now consists of10 vice-presidents and the president and CEO.

Included in the shakeup was the termination of three executive vice-presidents with Nalcor, whose combined compensation in 2020 was just under $1 million.

As interim N.L. Hydro president and CEO, Williams's annual salary is $395,000.

In 2020, his final full year as president and CEO of Nalcor, Stan Marshall's total compensation, including bonuses, was $840,600.

Read more from CBC Newfoundland and Labrador