Documents obtained from the Oversight Committee suggest that Nalcor may have maintained a secret “Management Reserve” budget for a category of risk known as “Strategic Risk”. The Reserve was kept out of the estimates for the project and placed under the control of the “Gatekeeper”, presumably the former Nalcor CEO, Ed Martin.
Nalcor evidently understood that such an allocation had important budgetary implications for the project - and for their ability to sell the scheme. But its importance was too great to let the public know anything about it.
Nalcor evidently understood that such an allocation had important budgetary implications for the project - and for their ability to sell the scheme. But its importance was too great to let the public know anything about it.
The fund was not revealed to the PUB during examination of the DG-2 estimates — or later.
But, in addition, Nalcor also did not disclose any allowance for Strategic Risk in their DG-2 estimates, DG-3 estimates, or any estimates provided to the public prior to 2016.
But, in addition, Nalcor also did not disclose any allowance for Strategic Risk in their DG-2 estimates, DG-3 estimates, or any estimates provided to the public prior to 2016.
Why would any category of project costs have been kept secret, or excluded?
