The Registered Nurses’ Union Newfoundland & Labrador (RNU) is expressing profound concern and frustration following the release of the Auditor General’s report into health sector contracts. The report exposes a disturbing pattern of mismanagement, unethical conduct, and disregard for procurement laws. These findings confirm the serious concerns nurses have been raising for more than a year.

“This report validates what we’ve been saying all along – laws were broken, people profited, nurses were ignored, and Newfoundlanders and Labradorians were short-changed,” said Yvette Coffey, President of RNU. “This is gross mismanagement. Newfoundland and Labrador Health Services (NLHS) must be held accountable, and there must be consequences.”

Among the most alarming findings:

• NLHS bypassed procurement laws, awarding contracts without public tender.
• Over $4 million in taxpayer dollars were paid for ineligible or unsupported expenses, including electric vehicle rentals for nurses not even in the province.
• $1.9 million in rent was paid to NLHS employees in violation of conflict of interest legislation at rates averaging 90% above market value.
• The cost per agency nurse exceeded $400,000 annually, while the cost for a full-time registered nurse remains under $120,000.
• Despite public claims of improvement, spending increased while care and access did not improve.
• The Auditor General stated there were “strong indications of potential billing fraud.”
• “While insiders made money, our nurses were left to carry the weight of a broken system,” said Coffey. “And the public – who rely on our healthcare system – have paid the price.”

The RNU is calling on NLHS and the provincial government to:

• Admit these failures and take ownership of the crisis.
• Commit to implementing every recommendation from the Auditor General’s report without delay.
• Recover public funds and ensure those responsible are held to account through disciplinary, regulatory, and legal processes.

RNU acknowledges the provincial government’s swift response and the directives announced by Health Minister Krista Lynn Howell.

“The Minister’s directives are a starting point, but they are not enough,” said Coffey. “This is a crisis of integrity not just finances. It demands more than policy memos. We need independent oversight, public transparency, and legal accountability.”

Given the Auditor General’s conclusion that there are strong indications of potential billing fraud, RNU is calling for a full investigation under all relevant legislation—including, but not limited to, the federal Competition Act, the provincial Conflict of Interest Act, and criminal laws pertaining to fraud, breach of trust, and public corruption.

The union is also calling on the Public Accounts Committee to launch its own investigation.

“We need a full and open accounting of how public dollars were spent, who approved these decisions, and what oversight was missing,” said Coffey. “This is not a good day for our public healthcare system, for the people of Newfoundland and Labrador, or for the taxpayers of this province.”

“The government says they have confidence in the leadership of the health authority. But Newfoundlanders and Labradorians deserve more than confidence; they deserve consequences, answers, and reform.”

RNU continues to advocate for a publicly funded, publicly delivered healthcare system where nurses are respected, ethical standards are upheld, and public dollars are used to serve the people and not private interests.

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About the Registered Nurses’ Union Newfoundland & Labrador The Registered Nurses’ Union Newfoundland & Labrador (RNU) represents more than 5,800 registered nurses and nurse practitioners working in acute care, long-term care, community, education, and research. RNU is dedicated to advocating for quality public healthcare and ensuring that RNs and NPs are recognized and supported in delivering expert, evidence-based care to the people of this province.

For more information, please contact:

Jonathan Hamel

Director of Communications

Registered Nurses’ Union Newfoundland & Labrador

Phone: (709) 691-6890

Email: jhamel@rnunl.ca