Federal Auditor General Sheila Fraser will prepare a report on the two asset-backed commercial paper investments the Yukon government put $36.5 million into this past summer.

Liberal Leader Arthur Mitchell received a letter from the auditor general's office this morning confirming a report will be prepared early next year.

A typo in the letter states it will be ready in early 2007, but Mitchell said he contacted the auditor general's office and will be sent a letter with the corrected date.

The legislature has been dominated with questions around the two investments, after banks would not return money to investors at their maturity dates.

A date of Dec. 14 has been set for the banks to decide how they will proceed. It's expected the investments will be rolled over into longer five- to 10-year maturity dates.

Mitchell wrote the auditor general's office last week to ask that it look into whether the government complied with the Financial Administration Act when it purchased the investments in July and August.

'It means that the auditor general feels that this issue is an issue that warrants her attention,' Mitchell told a press conference this morning, adding he's pleased it will be looked into and some clarity provided on it.

'It's something we have been very concerned about on behalf of Yukoners the procedures that were or were not taken when the decisions were made by the current (Premier) Dennis Fentie government to make these investments,' he said.

The letter from Fraser's office comes a day after members of the legislature's public accounts committee, NDP MLA John Edzerza and Liberal MLA Don Inverarity, tabled letters calling for the committee to convene to look at holding hearings on the government's investments.

As the committee's chair, Mitchell wrote to the six other members regarding the two letters and proposed a meeting for Thursday morning to consider the requests.

In addition to Mitchell, Inverarity and Edzerza, the committee is made up of Yukon Party members Marian Horne, Patrick Rouble, Glenn Hart and Steve Nordick.

If the meeting goes ahead on Thursday, Mitchell would present the letters to the members and ask how they want to proceed.

While issues are normally dealt with by consensus by the committee, it may go to a vote if there is not a clear direction, he said.

The committee has the power to subpoena witnesses at its hearings, Mitchell noted.

This morning, he said the letter from the auditor general doesn't change his plans for the public accounts committee.

'The more public scrutiny, the more oversight that there is on these issues, I think the better the chances for the public to get a full understanding,' he said.

While the auditor general will look specifically at whether the territory's Financial Administration Act was complied with, the public accounts committee would be examining the territory's overall investment policies and whether there's a need for further policies and other issues around the territory's investments.

NDP Leader Todd Hardy brought forward a bill last week calling for changes to the Financial Administration Act so ethical and environmental investments would be part of the territory's portfolio wherever possible.

This morning, Mitchell told reporters he would like to see an 'open and focused discussion on everything surrounding the way in which Yukon invests money on behalf of the Yukon taxpayer.'

Pointing to the recent concerns raised around Tasers, he noted there are several investigations underway to look at a variety of aspects of the use of stun guns by law enforcement agencies.

Even if the government gets its money back from the investments, Mitchell said, the matter still needs to be looked into.

'The issue is the decision-making process to make these investments and was that process made in compliance with the Financial Administration Act, which is there to protect Yukon taxpayers from poor investment decisions,' he said, making a comparison with a decision of drinking and driving.

'It's not a question of whether you have an accident that determines whether you were acting prudently or not.

'It's the initial decision to drive under the influence regardless of whether you have an accident that day or not,' he said.

Mitchell expects the report by the auditor general will likely come forward in late January or early February.

He noted there's a separate report on the 2007 Canada Winter Games coming forward for the committee by the auditor general scheduled for early February.

The report on the investments may be released at the same time as a matter of convenience, Mitchell suggested, though he noted he also hasn't spoken with the auditor general's office on the exact timing of the report.

Fentie remains hospitalized in Vancouver for medical reasons his office will not specify. Cabinet minister Elaine Taylor has been answering questions in the legislature on his behalf.