Newfoundland and Labrador health officials are currently withholding information regarding an external forensic audit conducted on payments made to a travel nursing agency. The audit, carried out by Deloitte LLP, cost the province’s health authority nearly $1.1 million, as revealed in records obtained by CBC Investigates through access to information requests.
The audit comprised five payments to Deloitte, starting in September 2025 and concluding with a final invoice in early February of the current year. Despite a request for the audit findings under access to information laws, Newfoundland and Labrador Health Services declined to disclose the information, citing a provision that allows for the withholding of policy advice or recommendations.
According to the law, final reports or audits on the performance or efficiency of a public body or its programs cannot be refused for disclosure. However, the health authority stated that the report is still pending finalization, despite the last payment being made over seven months ago. The identity and expertise of the “content experts” advising on the report remain undisclosed.
The audit was initiated following a critical report by Auditor General Denise Hanrahan on travel nurse spending, particularly focusing on a company referred to as “Agency A,” later identified as Canadian Health Labs. The audit flagged numerous non-compliant expenses, including items like a milk frother, food processor, and an air fryer. Concerns were also raised about electric vehicle rentals, indicating potential billing fraud.
Canadian Health Labs defended its billing practices, claiming accuracy in their services to Newfoundland and Labrador Health Services. The company received $73.6 million from the province between 2022 and 2024. Hanrahan recommended a comprehensive audit to recover any public funds paid in error.
The outcome of the audit and potential next steps remain uncertain. Former NLHS CEO Pat Parfrey had indicated that decisions would be made based on the audit findings. Health Minister Lela Evans mentioned the audit nearing completion in April, emphasizing the government’s commitment to transparency and accountability.
With a new health minister, Joedy Wall, in office, inquiries about the audit have been redirected to NLHS. The public awaits further updates on the audit’s progress and any actions to address potential wrongdoing.
