How the Atlantic Lottery Corporation does business is coming under scrutiny.
Auditor General Kim MacPherson says the four provincial governments in Atlantic Canada changed their minds about internet gambling and it cost a good chunk of change.
“When the projects were nearing completion, the shareholder governments informed ALC they would not support these products. So this resulted in a write-off of $640,000.”
A report conducted by AGs in New Brunswick, Nova Scotia, PEI and Newfoundland and Labrador also found ALC executives gave themselves significant pay raises without consulting shareholders.
Some cases showed a 56 per cent annual compensation increase, helping some top ALC executives earn roughly $390,000 a year.
The Auditors General were also critical of the Atlantic Lottery spending $111,000 in Christmas party expenses over a two-and-a-half year period.
The report also found ALC gave away $73,000 worth of concert and event tickets to politicians and senior bureaucrats.
The AGs questioned the value and said the corporation did not know if the tickets were used.
Meanwhile, the CEO of the Atlantic Lottery Corporation says the company is on solid ground with record profits but he acknowledges they can do better and they will.
Brent Scrimshaw says ALC will be increasing transparency by posting the expenses and compensation of senior leaders online.
Scrimshaw says the company will also be tightening its belt amid a period of economic restraint in the region.
“We have already put in place much tighter controls on travel and hosting that will deliver the type of operational efficiency that Atlantic Canadians expect.”
Although the company believes in its employees, Scrimshaw adds employee recognition spending will be scaled back and company-funded holiday parties have been cancelled.
