Province Commits to Forensic Audit, Funds to Southwestern Economy

The province today, Sept. 20, announced it will begin a forensic audit into the South West Shore Development Agency.

"Municipalities and local businesses are concerned about what happened to the money given to SWSDA," said Percy Paris, Minister of Economic and Rural Development and Tourism. "This is an attempt to find out where that money went and why so many good local businesses and municipalities are left with significant unpaid bills."

The audit process will begin within the next month.

In addition, to help mitigate SWSDA's negative impact on the region, the province committed that any money it receives as part of the SWSDA bankruptcy proceedings will be invested in the region for community and economic development.

"Our greatest concern right now is the impact on local unsecured creditors," said Mr. Paris. "I'm very concerned about the treatment that businesses and municipalities received from SWSDA. The province will work very hard with people to help manage the impact of these actions. Every cent that comes to the province from the bankruptcy is invested back into the region, over and above normal spending."

The province has accepted a recently revised proposal from trustee Grant Thorton Ltd. to remain as a secured creditor. This secured status ensures any of the funds the province receives will be invested in the affected communities.

The province stands to receive up to $475,000 if the property sells for at least $1.075 million.

"People and small businesses in Southwest Nova deserve answers, and they deserve to not be the ones left holding the bag. This forensic audit will get to the bottom of what went on at SWSDA," said Mr. Paris. "We will help benefit the communities by re-directing any funds to them. And using existing options, we will work with the small unsecured creditors through the department to help mitigate SWSDA's bankruptcy impacts."