The Yukon government could hold PricewaterhouseCoopers (PwC), the receiver of Victoria Gold and its former disaster-stricken Eagle mine in contempt if its representatives don’t appear to answer questions.
In a tense exchange of letters this week, Yukon Legislative Assembly speaker Jeremy Harper urged that PwC’s senior vice-president and another representative attend a committee of the whole meeting to provide witness testimony. During an assembly debate on Friday, a contempt motion was put forward, the Canadian Press reported. That followed the company’s legal counsel saying in a reply letter that the government lacks the authority to compel its attendance to the meeting.
In response to the government’s claim that senior vice-president Michelle Grant could be “sanctioned” if she doesn’t attend, legal counsel Peter Ruby with Goodmans LLP said it’s a threat that PwC must take seriously.
“We ask that you please promptly provide the compelling authority on which you rely so that it may be properly considered,” he wrote.
The back and forth comes almost one year since a heap leach pad failure at the Eagle site last June caused a landslide. The accident unleashed millions of tonnes of material and at least 280,000 cubic metres of cyanide-containing solution left the pad’s containment, according to government estimates. About six weeks later, Victoria was placed into PwC receivership by court order after the Yukon government was dissatisfied with the company’s clean up efforts.
The territorial government wants PwC representatives to speak before the assembly about the remediation efforts at the Eagle site and to allow assembly members and the public to ask questions about the clean up, John Streicker, minister of energy, mines and resources said in a release.
Contempt motion adjourned
Debate on the contempt motion was adjourned until Monday, and PwC’s appearance before the assembly is expected on Tuesday, CP reported.
However, PwC maintains that it would only attend the assembly to provide testimony if it was ordered by a court, Ruby said.
It wasn’t clear if such an order had been made and the websites of Goodmans and PwC offered no information on it.
The territorial government wants PwC representatives to speak before the assembly about the remediation efforts at the Eagle site and to allow assembly members and the public to ask questions about the clean up, John Streicker, minister of energy, mines and resources said in a release.
Meanwhile, PwC had provided a comprehensive briefing and update to the Yukon government and members of the legislative assembly on April 16, PwC spokesperson Anuja Kale-Agarwal said by email.
Stay the threat
PwC also intends to ask a court that the “threat of sanctions” made in Harper’s Wednesday letter be stayed under the terms of the receivership order, Ruby added. The matter is to come before an Ontario court on Monday.
The Northern Miner has requested comment from Harper.
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