HALIFAX - A forensic audit of a bankrupt development authority in Nova Scotia says the group suffered from limited expertise with legal issues, economic development or project management.
The audit of the South West Shore Development Authority, conducted by Ernst & Young, found the group lost money every year between 2003 and 2010, except 2008 when it received $1.8 million for the sale of a former naval base.
As well, the audit found problems with expense claims, duplicate invoices, the CEO's pension plan and cheques being held back from suppliers.
The audit says financial information provided to the authority's board of directors was not sufficient to enable effective oversight.
The non-profit group shut down in June 2010 and sought restructuring under the Bankruptcy and Insolvency Act six months later.
The provincial government says the group owes the province $475,000 while dozens of unsecured creditors are owed more than $2.3 million.