In his Report tabled today in the House of Commons, the Auditor General of Canada, Denis Desautels, calls for improvements in the governance of Crown corporations. He points to weaknesses in boards of directors, audit committees and the government oversight role in Crown corporations' strategic direction. The Auditor General also notes that these weaknesses remain, even though they have been pointed out many times before in his reports and other external studies and reports. It is critical that, as public sector bodies, they be governed well if taxpayers' money is to be well spent.
Crown corporations are distinct legal entities wholly owned by the government.
They have more autonomy to manage than most other government entities so they can operate in a more commercial manner. In addition to the boards of directors, the government and Cabinet also play a role in the governance of Crown corporations. There are currently 41 federal Crown corporations, employing 70,000 people. They lack essential skills and capabilities that are required to function effectively and to carry out their responsibilities for the affairs of the corporation. They also need to take a more active role in the selection of the chief executive officer.