McGrath says nothing done wrong when contract cancelled

James McLeod
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For another day, Transportation Minister Nick McGrath insisted that everything was above board when he cancelled a contract and any chance for compensation for work left undone by Humber Valley Paving, following a verbal negotiation with Gene Coleman, the son of incoming premier Frank Coleman.

Nick McGrath. — Telegram file photo

McGrath told reporters that he has never personally intervened to renegotiate a government contract before, but he said there was nothing untoward about the fact that this instance just happened to involve the son of the man who will become premier in July.

Frank Coleman will become the province's 12th premier by default when his only competitor dropped out of the PC Party leadership race in April.

In the House of Assembly, for the second day this week, the opposition parties hammered away at the government. The NDP says that the auditor general should be brought in, and the Liberals are demanding McGrath's resignation.

McGrath has said he won't resign because he hasn't done anything wrong.



Organizations: PC Party, NDP

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Recent comments

  • Tony Rockel
    May 06, 2014 - 17:14

    The road to Hell was evidently paved by HVP.

  • Minister, are you telling all?
    May 06, 2014 - 17:13

    Did Frank Coleman provide a personal guarantee or did The Coleman Group provide an inter corporate guarantee in order to acquire the Bonds from the Surety company? If so, were these guarantees still in place when the Bonds were released. If so, then contrary to what Frank Coleman says there was a substantial personal benefit. if as the Minister says"We did not want to put the company (HVP) into bankruptcy". Because if the above is correct the surety company would have called any personal guarantee or any inter corporate guarantees.

  • Corporate Psycho
    May 06, 2014 - 16:51

    McGrath doesn't even look like he believes what he is saying. I can't believe he is trashing his career over this. Time for him to fall on the sword for Coleman.

  • contractor
    May 06, 2014 - 16:33

    Nothing wrong...ok then get down to facts? Construction bonds are a mandatory prerequisite on most all government projects to protect against adverse events that may cause disruption in overall job completion. QUESTIONS: Coleman said he sold Humber Valley (HVP). If true why hasn't he said to who? Coleman the director removed his name from HVP. Wonder if he was paid a chuck of the holdbacks before any of the unsecured creditors got paid. Internally, the directors changed within the family to get Frank Coleman off the books. The company was never sold...correct it if wrong! Whose name is signed on the dotted line as the guarantor of the bond. This is the bond that the PC party refused to call in. What’s the rest of the supposed hardships that HVP stated in this cry of poor pitiful me? Where’s is government’s paper trail documenting the issues as they occurred since HVP won this bid in 2012? Where are the "denied" force account claims that would have been submitted from HVP to request extras on the "supposed" hardships? FACT the forest fire in question occurred on the other side of Labrador. The contract was near Goose Bay not anywhere near the fires in Lab City. I could even give a benefit of the doubt. I understand that a contractor can run into difficulties beyond their control. Due to the fire give HVP an extension to complete the work on the contract. That would have been reasonable. Instead, this PC government gave HVP a complete “get out free card” to their new potential leader. FACT: Frank Coleman's son Gene meet with Nick McGrath asking to get "his company at the that time" released from a government contract with no penalties and no bond security being called in. Not one piece of official paper trail. To say this is ridiculous is an understatement. This is millions of dollars being mis-spent and it is not acceptable. This is no longer just a government mistake. It is now a premier elect using his association with the PC party completely to his personal advantage. Furthermore, it is at the detriment of Labrador. Nick McGrath and this PC Party should have called this bond. Contractors know the risks. Bonds are a needed part of the tendering process and you have completely screwed this over.

  • Yis b'y.
    May 06, 2014 - 16:21

    The timing is highly coincidental, don't you think?????

  • dave sharpe
    May 06, 2014 - 15:57

    Enough stink here to take McGrath and Colemen down. Bring in the auditor general.

  • Darrell
    May 06, 2014 - 15:48

    Yeah, right. Only a matter of time Nick, only a matter of time.

  • Little Man Dan
    May 06, 2014 - 15:04

    I certainly don't see anything wrong with it. How do you erase fingerprints?