Alberta Securities Commission commissioner Rod McLeod says the ASC has been unable to reach an agreement on the terms of the Alberta Auditor General Fred Dunn’s examination of the commission.

In a statement on the progress of the dispute over the proposed audit of its enforcement function, McLeod said members of the ASC met with Dunn to discuss the terms of his examination of the commission. They were unable to reach an agreement on the terms of the examination, McLeod explained. The ASC is seeking to: force complainants to go on the record; maintain the confidentiality of enforcement investigations; and, protect solicitor-client privilege, among other things.

“We have advised the Minister of the differences of opinion between Mr. Dunn and the Commission,” McLeod said. “The Auditor General has agreed to provide us with a revised letter setting out the terms surrounding his work and we expect to receive this next week.”

“We are appealing to Albertans’ sense of basic fairness and refuse to accept information as truthful when it comes from anonymous informants who do not present themselves to be questioned by those they accused,” he added. “We must stop boxing shadows and ghosts and begin dealing with the issues in a fair and transparent manner.”

“We told Mr. Dunn that his proposed scope of audit may require the ASC to breach statutory and legal obligations placed upon us by the Securities Act. that we cannot and will not do,” he said. “The Commission must hold confidential all information acquired pursuant to investigations and that is paramount in setting the terms of the audit.”

McLeod said it asked Dunn to allow both organizations’ lawyers to negotiate an agreement, or seek advice and direction from the Court of Queen’s Bench, as to how to satisfy both groups’ statutory duties and requirements. He said Dunn refused. And, he said Dunn refused to simply audit its financial statements, and not begin the enforcement audit until they reach agreement on the terms of reference.