POLITICS

Newfoundland and Labrador's auditor general asked to look at paving contract

05/08/2014 01:25 EDT | Updated 07/08/2014 05:59 EDT
ST. JOHN'S, N.L. - The premier of Newfoundland and Labrador has asked the province's auditor general to look into a contract awarded to a paving company that was once led by incoming premier Frank Coleman.

Premier Tom Marshall, who will be replaced by Coleman, told the house of assembly today that he has asked auditor general Terry Paddon to investigate the deal with Humber Valley Paving.

The province's opposition parties called for an investigation after Marshall said Humber Valley was not penalized when it walked away from a $20-million contract to pave a portion of the Trans-Labrador Highway.

Liberal Andrew Parsons and New Democrat George Murphy say the cancelled deal involving a company linked to Coleman raises questions about conflict of interest.

Last week, Marshall said the company completed about 60 per cent of the paving and was paid for its work.

He said the work wasn't finished because of exceptional circumstances, including forest fires last summer that threw construction behind schedule.

Coleman is the lone contender for the leadership of the Progressive Conservatives and is expected to be sworn in as premier after a convention in July.

(VOCM)