Nalcor hires former deputy minister as 'global leader' offshore consultant for $337K

A former deputy minister for the Department of Natural Resources was recently awarded a $337,000 consulting contract without competition by Nalcor, prompting scrutiny from the Opposition in the House of Assembly Tuesday.

Aberdeen International Associations, co-directed by Gordon McIntosh who worked alongside Minister SiobhanCoady in 2016 and helped design the province's offshore planwas recently awarded a "sole source" contract with Nalcor to now consult on the same plans hedeveloped.

It was in violation of the Conflict of Interest [Act].- Keith Hutchings

McIntosh made about $180,000 as deputy minister.

The "sole source" decision means nobody else was considered for the contract, a move Coady defended as being within the Crown corporation'spurview.

"Nalcor does budget its own consultation and this is within that budget," she said during question period in the legislature.

PC MHAKeith Hutchingspressed Coady on why McIntosh's company was selected over someone closer to home. McIntosh's company is based in Scotland.

"We've grown our oil and gas industry in the province for the last 20 or 30 years. We've got lots of expertise in the province, people working around the world. Why wouldn't this go to competition?" he said.

"The direction we're taking is really to drive the growth ofthe industry," Coady said, referring to a government plan for the offshore dubbed "Advance 2030."

"Having that international expertise, that global awareness, is very, very important. We compete around the world for the investments that are being made."

Hutchings also raised the possibility of the hire creating a conflict of interest, taking issue with a conflict waiver in Nalcor's contract to Aberdeen Associates.

"Itwas in violation of the Conflict of Interest [Act]," he told reporters."There had to be a special exemption rendered for it. It's defined as a 'specialized service' contract we've been giving no indication as to why that is or what the circumstances were, [or] why it wouldn't go to a public competition."

Coady shot down the suggestion of any wrongdoing on the Assembly floor. "Waivers under the Conflict of Interest Act are not uncommon.They do occur," she said.

"It happens all the time. Remember, [the contract is] with a Crown corporation. It's not in conflict with what he will be doing."

Nalcor came under fire in 2017 for not releasingcontractor payments. The Department of Natural Resources changed that last year, amending legislation to make Nalcorcontracts public.

A Nalcor spokesperson told CBC News in a statementTuesday that McIntoshwas a desirable choice, given his experience in leading offshore projects and familiarity with the province.

"Because of his experience and knowledge," the spokesperson said,"we considered the contract a specialized service so it was sole-sourced."

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