Judge denies N.B. auditor general's request to view internal audit reports on travel nurses

CTV News

a day ago

A Court of King's Bench justice has denied the New Brunswick auditor general's request to view Vitalité Health Network's internal audit reports on the agency's travel nurse contracts that began in 2022.
According to a written decision from Chief Justice Tracey DeWare, the auditor general sought to compel Vitalité to disclose the reports as part of its investigation into the management and use of travel nurses.
The decision says Vitalité ordered an internal audit for the period spanning August 2022 to June 2023.
'The Respondent (Vitalité) asserts these internal audits confirmed the existence of deficiencies in the performance of the agency nurses' contract with one of the agencies – Canadian Health Labs ('CHL'),' the decision reads. 'The Respondent and CHL are now involved in litigation arising from this contract.
'The Respondent has refused to produce the internal audit reports on the basis they were properly subject to both a litigation and solicitor-client privilege.'
Last year, the auditor general's audit found Vitalité, Horizon Health Network and the Department of Social Development spent $173 million on travel nurse contracts between Jan. 1, 2022 and Feb. 29, 2024.
'The purpose of the audit was to determine if government contracts with private nursing agencies represented good value relative to their costs,' the written decision reads. 'As part of the audit process, the Applicant (auditor general) requested from the Respondent various information and documents. The Applicant was particularly interested in governance practices, policies and billings to the agencies.'
Chief Justice DeWare said the auditor general argued section 13 of the Auditor General Act allows them to access documents and information that would otherwise be private or confidential.
Vitalité argued the disclosure of the internal audit reports would 'prejudice its ability to prosecute the action against CHL.'
Chief Justice DeWare said the court must interpret section 13 of the act restrictively, noting that it does not refer to privileged information.
'While I appreciate the Applicant's argument, the addition of the words 'confidential and private' to section 13 indicates an expanded scope to the information which could be sought, it falls short of explicitly stating an intention to have access to 'privileged' documents,' the decision reads. 'Solicitor-client privilege and litigation privilege are foundational to our legal system.
'Section 13(a) of the Act does not grant the Auditor General the authority to require production of documents or information which are properly subject to a solicitor-client or litigation privilege.'
Chief Justice DeWare dismissed the auditor general's application and said Vitalité is entitled to costs, which are fixed at $2,000.
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