A legal opinion by the territory's Department of Justice has concluded no offence was committed by Department of Finance officials, though the Financial Administration Act was breached when the government invested in the asset-backed commercial paper market.

Finance officials invested $36.5 million in the funds last year, but the money has been tied up since the fall when problems began showing up in the market.

The funds - which are part of a total of $33 billion invested across the country - continue to be tied up as investors await a restructuring plan.

Last month, federal Auditor General Sheila Fraser concluded the territory's Financial Administration Act was breached.

This morning, Tom Ullyett, Justice's assistant deputy minister for legal services, told reporters his branch was asked on Feb. 25 to provide a legal opinion on whether any offences were committed under the act.

"We did not conduct an investigation," he said.

Had the legal opinion come to the conclusion an offence had been committed, an investigation would have likely been recommended, Ullyett said.

The department works on such legal opinions on a daily basis for a variety of issues, he said.

A legal opinion looks at the facts, in this case the Auditor General's report, to determine if an investigation is warranted.

In determining no offence had been committed, the lawyers from the department looked at section 77 of the Financial Administration Act, which states:

"A public officer commits an offence who (a)in connection with the performance of duties respecting public money, willfully makes or signs a false entry, certificate, requisition, return, or other document; or (b) having knowledge or information of the violation of any Act that provides for the expenditure or collection of public money, or of fraud committed by any person against the government, fails to report that knowledge or information in writing to the deputy head of the Department of Finance."

The act doesn't include a provision for negligence and government lawyers are required to work within the act's wording, Ullyett explained.

He informed Justice Minister Marian Horne of the conclusion yesterday, though, as he pointed out, the issue can be reopened if new information comes forward.

Despite the legal opinion, both Liberal Justice critic Don Inverarity and NDP Leader Todd Hardy say they will continue to pursue the issue when the house begins its spring sitting on March 20.

With no officials or politicians being asked questions on the matter, the approach is "a bit of a sham," Inverarity argued today.

"What about negligence of duty?" Inverarity asked following the press conference.

Premier and Finance Minister Dennis Fentie has a duty to ensure rules such as the Financial Administration Act are followed, he said.

Hardy wasn't surprised at the conclusion the lawyers reached, given the wording of the act, but noted there are still a number of questions that need to be asked. An example: why the mistake was made and how the territory ended up in the situation.

Hardy noted that with avenues such as the public accounts committee shut down (after the resignations of member Inverarity and chair Arthur Mitchell), the legislative assembly remains the area for such questions.

The NDP leader also argued Fentie shouldn't be commenting on the legal opinion. Rather, Hardy suggested, it should be Horne speaking to the issue.

While Horne has made no comments on the matter, on Monday, Fentie argued there has been and is no "investigation whatsoever."

He wouldn't comment extensively on the issue though, stating department officials would speak to the media at this morning's news briefing.