Cancelled paving contract inquiry a no go, 2 others moving ahead

The provincial government is reneging on a promised inquiry into the cancelling of a contract with a Corner Brook-based paving company.

"The inquiry into Humber Valley Paving will not be pursued at this point, given the passage of time and other commitments," confirmed a spokesperson for the Department of Justice in an email on Monday.

In 2013, Labrador West PC MHA Nick McGrath, who was transportation minister at the time, terminated the $19-million contract with Humber Valley Paving for roadwork in Labrador, and also decided not to call in a $9.5-million bond against the company.

Only 60 per cent of the work was completed, and the company was paid for that portion.

McGrath resigned from cabinet following a scathing report by auditor general Terry Paddon into the issue.

Paddon said McGrath pushed through the cancellation of the contract without telling senior government officials, including the premier's office, and within a matter of a few hours.

Political dominos

The decision sparked controversy because of its political overtones, with Corner Brook businessman Frank Coleman at the time poised to become leader of the Progressive Conservative Party, and thus premier of Newfoundland and Labrador.

Coleman was the former president and CEO of Humber Valley Paving, and his son, Gene, was still a company executive at the time.

Coleman later withdrew has candidacy at the 11th hour, however, citing personal reasons.

Other inquiries moving ahead

The government said Monday two other inquiries were making progress to begin.

The provincial government and the Innu have agreed on the terms of reference for the examination of Innu children in care.

That inquiry was expected to begin in 2017, but convincing the federal government to fully participate took longer. Because it's the federal government that retains responsibility for Indigenous people, the Innu in particular wanted them to be fully involved.

The terms of reference have not been confirmed yet, but they are in the works for the inquiry into search and rescue operations, stemming from the death of Burton Winters.

"We anticipate the search and rescue inquiry to be smaller, more focused and less expensive than the Muskrat Falls Inquiry and we're working towards establishing the inquiry as soon as possible," said the Justice Department on Monday.

CBC
CBC

Burton, 14, died after his snowmobile got stuck on sea ice outside of Makkovik, Labrador, in 2012. While there was a ground search underway for the missing teen, it took two days for a military aircraft to be dispatched to the search.

It took three days for his body to be found.

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