May 26, 2021 – The Nova Scotia Liquor Corporation does not have the checks and balances in place to be able to fully justify the decisions it makes about what products it buys, where they are placed on store shelves and at what price.
That’s one of the key findings of an audit released Tuesday by Kim Adair-MacPherson, Nova Scotia’s new auditor general. In her first report to the House of Assembly, Adair-MacPherson didn’t mince words.
“Overall we found the Nova Scotia Liquor Corporation does not have adequate processes and documentation to ensure important decisions over the procurement and promotion of retail beverage alcohol are made and supported in a consistent manner,” stated her 27-page audit report.
“Generally, we found processes in place lacked clarity; document retention was not a priority; and approval and review processes were almost nonexistent.”
In an interview from her Halifax office, Adair-MacPherson said the audit results were unexpected given the size of the Crown corporation’s sales and the fact decisions related to its core business were undocumented.
“We were surprised to find, given the size of the organization, over $750 million in sales each year, that the processes lacked clarity and there was a lot of reliance on the staff within the organization,” she told CBC News.
“There is opportunity for fraud, although it’s important to point out that we did not find any indication of fraud. But the staff within the organization are vulnerable.” CBC News reports. | READ MORE