ST. JOHN'S, N.L. - Newfoundland and Labrador's auditor general says the provincial government cancelled a highway contract just before nominations closed in March for the Progressive Conservative leadership race.
Terry Paddon raises questions in a new report about why the contract with Humber Valley Paving was terminated on March 13, the day before nominations closed for the leadership contest.
The company was once led by Frank Coleman, who was in line to become Tory leader and premier before he suddenly withdrew from politics in June citing an undisclosed family matter.
Coleman has said he sold his shares last winter and resigned from the board of directors just before entering the leadership race.
He repeatedly denied he personally gained from the contract cancellation negotiated at around the same time by his son.
Opposition critics raised questions about the cancellation and the personal involvement of Transportation Minister Nick McGrath (mac-GRAW'), who spoke directly with Coleman's son.
The government has said it saved taxpayers money by not calling in related bonds before retendering the work on the Trans-Labrador Highway that was slowed by forest fires last year.
Paddon concludes the urgency to cancel the contract on March 13 meant other options weren't fully considered.
His report does not find "documentary evidence" of undue influence but makes five recommendations.
Paddon also says the transportation minister "knowingly withheld information" about the cancellation from Premier Tom Marshall.
