Whitehorse Daily Star

Tendering process chaos' reigns, NDP says

When the local branch of Inland Kenworth was assessed a $45,000 bill by the Yukon government for the late delivery of 10 trucks last year, the company didn't fight it.

By Whitehorse Star on December 12, 2007

When the local branch of Inland Kenworth was assessed a $45,000 bill by the Yukon government for the late delivery of 10 trucks last year, the company didn't fight it.

But now things have changed.

'We had a contract, so we paid it,' branch manager Rick Datoff said in an interview Wednesday afternoon.

Now he is asking the Department of Highways and Public Works to cut it in half. He's doing so after learning Metro Chrysler Ltd. had an $11,103 late penalty on the delivery of 11 SUVs pared by 50 per cent.

The reduction came after someone from the Chrysler dealership approached Premier Dennis Fentie, who then approached Highways and Public Works Minister Archie Lang on the issue.

Lang has argued he simply brought the matter to the attention of department staff and had no dealings after that. Opposition members have maintained the premier should have instructed the dealership to contact the department if there was a dispute with the penalty.

Datoff said that when a contract is signed, clauses such as late penalties are part of the deal. It's up to dealers like himself to assess whether the vehicles can arrive by the deadline before they put in their bid.

'They should've paid it,' he said, questioning why, if a deal was cut for one, the same deal wouldn't be struck for all vehicle suppliers.

Department staff have explained the original Metro penalty of $11,103 was based on the estimated cost of covering rental vehicles while the government waited for the SUVs to arrive, and was then reduced based on the actual cost of the rentals.

Datoff said in his case, there were no vehicles rented in the couple of months the trucks were late.

The situation has him wondering if others who paid a total of $90,000 in the past year in late penalties will want their money back.

Datoff stressed he has no problem paying late penalties in full, provided everyone who's late has to as well.

As it stands, Datoff is waiting for the department to get back to him about whether he'll get back any of his penalty.

The department has told him staff are looking into it, but as of this morning, he hadn't heard back from officials.

Lang was heavily criticized in the legislature yesterday by NDP Leader Todd Hardy, who asked if the department would cut the same deal for all.

Yukon Party cabinet minister Jim Kenyon responded he received a letter on Oct. 10 from Liberal Leader Arthur Mitchell, who was contacting Kenyon in his role as the minister responsible for the Yukon Housing Corp.

'I certainly have the letter for tabling and it reads in part: I am asking you to intervene on her behalf and give her a reasonable extension to meet the original terms of her agreement,' ' Kenyon said

'Mr. Speaker, what is the difference between one MLA asking the minister to take a look at it and the leader of the Liberal Party doing it?'

This morning, Mitchell explained he brought it forward to the minister, not the department, as a constituency issue.

One of his constituents was having trouble meeting the deadline for her land to be developed.

After having issues finding a contractor to build a green home, there were additional problems with the architect, having to hire a new one, then not being able to have things ready on time, Mitchell said. Yukon Housing turned down the request for an extension.

Mitchell's constituent then wrote to Kenyon and copied it to Mitchell and Yukon Housing officials.

She asked that the minister use powers under sec. 4 of the Lands Act to use discretion in extending the deadline, because she had done work on the property, such as bringing in fill. She added she was proceeding to get the house built in a reasonable time frame considering the availability of contractors and architects and such.

Mitchell noted that as an MLA , he didn't communicate directly with Yukon Housing officials, nor the constituent, but took it to Kenyon as minister and as the process calls for among MLAs.

'It would be inappropriate for me to call officials,' he said.

In this case, he pointed out, the relevant act allows for the minister to extend the deadline and it was not putting taxpayers out any money like the late vehicles penalty did.

'She just didn't want to lose the lot,' he said, arguing he didn't do anything wrong.

Mitchell acknowledged, however, the wording of his letter could have been better by perhaps changing 'intervene' to suggesting the minister look into the matter.

Following Kenyon's statement about Mitchell's letter, Lang replied to Hardy's question, arguing the government treats everyone equally.

'If another Yukoner has an issue, I would certainly recommend they talk to the department. I have no problem with them bringing their issues forward. That's government, and we on this side don't pick winners and losers,' Lang said.

When Hardy questioned whether other contracts would be 'ripped up' now after the government's 'costly error', the minister replied: 'Let's tone it down a bit. This side of the house is committed to working with Yukoners.'

He repeated that concerns could be brought to the department.

'They've caused chaos within the tendering process,' Hardy argued in an interview this morning.

The ministers need to admit a mistake was made by interfering in the department, Hardy said. They should also make it clear the proper process will be followed and contracts will only be altered when there is just cause, such as changes to the contract order or in costs.

The government also needs to reinstate the authority of the bureaucracy so officials can do their jobs, the NDP leader argued.

While he'd like to see a public inquiry on the issue, Hardy believes the territory's public accounts committee has 'hit a wall again' in dealing with issues after the politics happening around the $36.5 million the government invested in asset-backed commercial paper.

The government hasn't been able to recover the investments at the maturity date.

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