Government review finds financial mismanagement at BCLC
Posted December 17, 2014 4:07 pm.
This article is more than 5 years old.
VICTORIA (NEWS1130) – BC’s finance minister says the province’s Crown-owned lottery corporation needs to do a better job of managing its operations.
Mike de Jong’s assessment was prompted by a Finance Ministry review of the BC Lottery Corp. that makes 25 recommendations for improvement, including calls for better business practices and saving money.
Finance Minister Mike de Jong says he has a couple of concerns. “One was a pretty detailed analysis on the cost structure. The fact the revenues are largely flat, they’re increasing ever so slightly, it’s not the same growth we’ve seen five or 10 years ago. The cost structure is increasing far more quickly and that, over the longer term, is a recipe for big problems. The corporation knows it and knows that it has to sit down and address that.”
De jong says the program for voluntary departure wasn’t well-executed. “That ended up costing the corporation far more than what was intended. It was supposed to be a cost-savings measure and it ended up costing $25 million. That’s not acceptable and it’s something the corporation has resolved to learn from and ensure never happens again.”
He says the plan was not a shining example of execution because 142 people took the departure option rather than the 68 the corporation estimated.
The review also comes after a $125,000 severance package given to former lottery boss Michael Graydon sparked intense debate in the legislature earlier this year.
BC NDP critic David Eby calls this a damning audit.
“BC Lottery Corporation has two jobs, one is to make sure that the maximum amount of revenue from casinos and lotteries goes back to the public and to ensure that gaming is done safely and responsibly in the province. They are failing on both counts.”
He says the corporation is lavishly spending on employees and managers.
All-in-all Eby says this report is incredibly problematic. “Forty per cent of their retailers are selling lottery tickets to minors.”
He says he’s surprised by de Jong’s response.
The evaluation wasn’t set off by Graydon’s departure, de Jong says it is simply part of the government’s commitment to review operations of all of its Crown corporations.
The lottery corporation says it has accepted the government’s 25 recommendations and has already made improvements to its business planning and cost-saving practices.
