Finance minister defends contract with firm linked to Saudi scandal

Newfoundland and Labrador's finance minister is standing by a New York-based consulting firm hired to look at economic diversification in the province, despite reports the firm may be linked to a scandal in Saudi Arabia.

Tom Osborne said he's confident McKinsey & Company never intended for its report on social media in Saudi Arabia to be used by the kingdom to punish its critics.

"They did write a report;the report was used for purposes other than it was intended for. McKinsey said that," Osborne said.

According to the New York Times, Saudi officials obtained a nine-page report by McKinsey about social media reaction to economic issues in that country. The Times article says the report singled out at least three Twitter users who were targeted by the regime.

In September, the provincial government agreed to give McKinsey $1 millionto prepare a report on growing the economy in sectors like aquaculture, agriculture, resource development and tourism.

Iwouldn't tamper with a fair process.If I did, you'd be blaming me for tampering with the process.- Tom Osborne

Osborne said McKinsey is a reputable firm with thousands of clients, and it won the contract in a transparent bidding process.

"I wouldn't tamper with a fair process.If I did, you'd be blaming me for tampering with the process."

In a statement provided to the Times, McKinsey said, "We are horrified by the possibility, however remote, that it could have been misused."

It went on to say the firm was investigating how the document landed in the hands of Saudi officials.

McKinsey's report to the province is due at the end of 2018.

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