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Auditor General highlights concerns within Newfoundland and Labrador Liquor Corporation

Specialty wine sales at the Merrymeeting Road location. Taken from auditor general’s report.
Specialty wine sales at the Merrymeeting Road location. Taken from auditor general’s report. - Glen Whiffen

A report release today by the province’s auditor general found that Newfoundland and Labrador Liquor Corporation did not manage the procurement and sale of specialty wines in an effective manner and in compliance with legislation.

The report also highlighted a known conflict of interest relationship between the chief executive officer and a close family member.

Auditor General Julia Mullaley’s report raised concerns around the lack of transparency in the acquisition of specialty wines for the corporation’s Bordeaux Futures program during the fiscal years 2007 to 2018. 

A news release states that decisions regarding these acquisitions rested solely with the former chief executive officer and were not documented and did not follow the standard process for other product lines. These wines were purchased throughout the period in quantities that far exceeded customer demand and resulted in significant excess inventory of specialty wine.

Further instances were identified where the corporation contravened federal and provincial legislation by knowingly selling and shipping, or arranging the shipping of, specialty wines directly to customers in other provinces. Prices for most of these wines were discounted in an effort to reduce the excess level of specialty wine.

Detailed stories being prepared for The Telegram website, Saltwire Network and The Telegram print edition. 

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