Parts of Muskrat Falls audit will be kept secret, commissioner rules

Parts of an independent audit into the construction phase of the Muskrat Falls hydroelectric project will bewithheld from the public and the project's main contractor, ruled Richard LeBlanc, commissioner for the Muskrat Falls inquiry.

Groups submitted arguments to the inquiry commission Tuesday afternoon, with NalcorEnergyand the provincial government arguing for redaction of what they called "commercially sensitive" information contained in the report.

Nalcorofficials received a copy of the report, prepared by independent auditor Grant Thornton, on Dec. 18, according to commission co-counsel. The Crown corporation has argued it fears the release of information in the report would give Astaldi, the companycontracted to build Muskrat Falls, unfair advantages.

Nalcor arguedthat some information in the report, including estimated costs of work contractsand amounts of bids and proposals, should be kept secret.

Astaldidetails will be public

LeBlanc agreed that "there is reasonable prospect for significant financial harm to Nalcor" if information about ongoing contracts is disclosed.

"As a result Iam prepared to restrict to some degree the contents of the report," he said.

But amounts and evaluations of bids, tenders and proposals will be made public, as will all information related to Astaldi.

"The Astaldi matter is not an ongoing contract. That contract has been terminated. It's far different from the other ongoing contracts, which I accept have some commercial sensitivity," he said.

Astaldi,the Concerned Citizens Coalition, and the provincial consumer advocate submitted arguments against censoring the report.

Government OK with redactions

Nalcorlawyers told the commissionthat public access to the audit "will give Astaldi procedural advantages" if it gained access to information that is "unavailable to it under the arbitration rules, increasing the risk of commercial harm to the interests of Nalcor and by extension, the province and its ratepayers and taxpayers."

The provincial government said in its submission that it supports redactionsor in-camera hearings "where necessity is demonstrated," and said itwas "comforted" that the commission itself would have access to the report, "even where limited redaction for the purpose of public hearings may be necessary."

Astaldi argued Nalcor had not met the bar for proving that information contained in the audit could reasonablydo commercial damage if made public. LeBlanc appeared to side with the contractor, stating that all information within the inquiry should be open and accessible.

"It's a public inquiry. It's obviously meant to be public," he said.

Astaldi's submission also argued that restricting information "will undoubtedly detract from the public's confidence in this inquiry. Nalcor's attempt to proceed, shrouded in secrecy, is antithetical to Nalcor's powers, duties and responsibilities as a Crown corporation."

Inquiry hearings resume Feb. 17. The Grant Thorntonreport will be the first item of business, LeBlancsaid Tuesday.

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