ST. JOHN'S, N.L. — Nalcor Energy CEO and president Stan Marshall was put on the defensive Tuesday following the release of the final report from the Muskrat Falls Inquiry.
The report found the Crown corporation at fault on a variety of fronts pertinent to the hydroelectric megaproject, which has ballooned in cost from $6.2 billion at the time of sanctioning in 2012 to more than $12.7 billion.
According to the report from commissioner Justice Richard LeBlanc, Nalcor unreasonably dismissed options other than Muskrat Falls. It found Nalcor acted unreasonably to consider the project the least-cost option for supplying power to the island, and its conduct subsequent to sanctioning contributed to cost increases and project delays. It said Nalcor did not take appropriate measures to mitigate risks associated with the project and, in some cases, it did not make the provincial government aware of risk reports and assessments.
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- The Muskrat Falls Inquiry (Phase III)
- The Muskrat Falls Inquiry (Phase II)
- The Muskrat Falls Inquiry (Phase I)
In reference to the government's sanctioning decision, the report found Nalcor deprived the province of "sufficient and accurate information” it needed to make an appropriate decision about the project.
Marshall met with reporters late Tuesday afternoon after having read the executive summary, one volume of six contained in the report, which exceeds 1,000 pages in length.
Defends VP
Early on, Marshall was asked about the continued presence of Nalcor vice-president Gilbert Bennett.
Among the report’s key findings were that Bennett, along with former CEO Ed Martin and the project management team (PMT), "frequently took unprincipled steps to help secure project sanction." The report accuses them of concealing information that would have hurt the business case for Muskrat Falls if it was made public or reported to the government or Nalcor's board.
"The PMT, with the tacit approval of Nalcor's executive, did its best to narrow consultants' terms of reference to forestall independent and comprehensive review and it tried to influence the editing of reports to make conclusions appear more favourable to the project," the report said in its key findings.
Marshall said the hearing ultimately was not about one individual and defended his vice-president. He also noted Martin has already taken responsibility for the communications with the government.
"I've worked with Gilbert for four years, and I trust him fully," said Marshall, who was due to leave the position in April but is staying for a few extra months as work continues to complete the megaproject.
"I have no evidence that Gilbert Bennett misled anybody," Marshall later added. "If I did, he wouldn't be here."
Marshall also defended the project director for Muskrat Falls electricity generation, Paul Harrington.
Harrington was also singled out for allegedly concealing information and narrowing the scope of reviews.
"Paul is still working on the project. Again, I've worked with him four years. He and I have had some pretty strong disagreements over that four years, so it's not as if we haven't had our differences, but on the other hand, he's done a job for me, and I have seen no evidence of dishonesty from him. If I did, he wouldn't be here."
Losing workers
Asked if anyone with the Crown corporation should be fearful of losing a job following the report's release, Marshall gave a firm response.
"Coming out of this report? No. I haven't read it all, but I listened to all the pertinent evidence, I thought, certainly (about) my people. I didn't hear anything to suggest that there's criminal behaviour, for example, or behaviour untoward for which I'd remove people. I'm more at risk of losing people. I need them at the end and they're crucial for me. That's my fear."
Marshall said he worries some employees may feel disillusioned and ready to leave Nalcor.
"I hope that's not the case. I've sent out a note to all of our employees encouraging them to stay calm and wait and see what comes out of the full report and read it in detail, and we'll just draw our conclusion after we've read it."
RELATED:
- Muskrat Falls — That dam project (Part I)
- Muskrat Falls — That dam project (Part II)
- Muskrat Falls — That dam project (Part III)
As for Nalcor's overall role in the project, Marshall admitted mistakes were made, but added the team in place now has worked hard to see this project through to the end.
"Clearly mistakes were made. There's no question about that. But the conclusion that comes out of the report and which I fully agree with is that after financial close in 2013, there was no turning back. My task is to finish it in the best way possible for the people of Newfoundland and Labrador, and that's what I intend to do and that's what I'm doing."
As for the provincial government's decision to refer the matter to police on the advice of civil servants who conducted a legal review of the report prior to its public release Tuesday, Marshall was skeptical of the potential for criminal charges to be laid.
"Certainly, I saw most of the hearing. I see nothing which would suggest there's criminal activity here," he said.
Twitter: @CBNAndrew
