Ottawa orders audit of Nunavut Planning Commission

The federal government says it will conduct a financial audit of the Nunavut Planning Commission.

The goal of the audit, ordered by Aboriginal Affairs and Northern Development Canada, is to provide "an independent and objective opinion" on whether the department has funded the commission as it promised to.

The audit will be carried out by Montreal-based auditing, tax and advisory firmKPMGand will cover the commission's last three fiscal years.

The commission has charged Aboriginal Affairs in the past with underfunding the commission's work, notably in relation to public hearings on a territory-wide Nunavut land use plan.

In March, Ottawa boosted the commission's funding by 25 per cent as part of the settlement of a legal dispute with Nunavut Tunngavik Inc. over the federal government's implementation of the Nunavut Land Claim Agreement.

Nunavut premier suggested audit

In April, Nunavut Premier Peter Taptuna accused the commission of holding up the regulatory process for reviewing Baffinland Iron Mines' plans to expand the shipping season for its Mary River project. "We are troubled that NPC is using the issue of core funding to avoid answering questions posed by the project proponent," Taptuna wrote Aboriginal Affairs minister Bernard Valcourt.

Commission chair Hunter Tootoo denied Taptuna's claim.

Taptuna also suggested the federal government audit the commission. Tootoo hassaidthe commissionhas nothing to hide and that he welcomes anaudit. The commission has posted summaries ofits audited financial statements on itswebsite.

Earlier this week, Valcourt spared Baffinland's shipping plan from further scrutiny under the commission, which reviews development plans to make sure they conform to the territory's land use plans. The Nunavut Impact Review Board will nowreview Baffinland's file.