of information on a massive scale.” That’s what the Anonymous Engineer told the
Uncle Gnarley Blog in January, 2017 about the estimates for the Muskrat Falls
now awaits follow through by the Premier and the Minister of Natural Resources
on his call for a forensic audit. The audit would detail the origins and extent
of the “low-balled” estimates and confirm whose signature(s) authorized their
conversation with him recently, the engineer reflected upon his disclosure and the
response of the Government. Said he:
has already indicated she accepts what I have said as part of the narrative and
that she has questions, too, the Minister must know my warning was completely supported
by the EY Interim Report, which the Government commissioned.”
nine months before I spoke out on why Muskrat was failing so badly. And EY
actually said a great deal in what was just a preliminary report…the proof is
all there…it needs only the forensic audit to confirm time-lines, how the
detailed estimates evolved, and who signed off at each stage. But the outlines
of the low-balled estimates are there. Read the EY Interim Report and you’ll
see how deeply concerned EY was over the $7.65 billion forecast that Ed Martin announced
in September, 2015 which EY termed “not reasonable.””
the Nalcor whistleblower was correct.
advice, I again reviewed the document EY gave the Ball Government on April 8,
principal conclusions are well worth noting:
September 2015 Forecast is not reasonable.”
“…there is a
risk of multiple-month delay to completion of the …transmission line… and risks
associated with the remaining scope…”
cost and schedule are not adequately reflected in the September 2015 Forecast.”
contingency level…is low…”
noted that the all-important Schedules had not been updated in three years.
the observations which the Anonymous Engineer discussed with me back in January
2017, and more recently with CBC’s Anthony Germain. They constitute part – but
only a part – of the basis for having called Nalcor public utterances “Falsification
of information on a massive scale.”
points need illumination.
and the Minister would have received a verbal Briefing from EY and possibly
other documentation, too that was not available to the public. They would have
been informed by April 8th, 2016 – likely earlier – that something
was seriously amiss at Nalcor.
left the Nalcor CEO Post on April 20th. Stan Marshall was introduced
by the Premier the following day, telling the media he was “deeply troubled” by
the delays and cost overruns.
not have a mandate to review or investigate the development and approval of the
alleged $6.2B fake estimate used to obtain project sanction.
recent CBC interview, Stan Marshall added what EY did not: “The estimate
was way, way too low. They would have never built it for that price.”
on Marshall’s remark the anonymous engineer suggests “estimates are not catastrophically low due to a mistake by a junior
employee. They are low by policy, design, intent, and decisions made at the
highest level in the organization.”
that project costs would dramatically increase.
and Coady for the statements of the anonymous engineer. When he made his
allegations they had heard much of it before!
some reason, the Premier and the Minister chose to stay quiet until the CBC put
a microphone under the Minister’s nose. Even then she said precious little
except to acknowledge that his remarks were credible and that she would await
direction from the Auditor-General.
public it must be galling that the Premier is quiet not just on the long string of
falsification at Nalcor but on what may turn out, at the start, to have been as serious
as malicious fraud.
public needs to understand that the observations which both the anonymous engineer
and EY reported are only the ‘results’ of what actually transpired. Those
reports do not confirm the origins – nor do they reveal what caused Nalcor to
engage in such a high stakes and protracted course of falsification or who
instigated the chain of decision-making.
engineer is careful to repeat his very simple message: “the cause of the
falsification reported on the Muskrat Falls project can be established only
through a Forensic Audit.”
Resources, owe an explanation to the people of Newfoundland and Labrador of
their long long silence As the Minister
said, the people need to know, and she needs to know.