You are here
Mint said to have double-counted gold, underestimated 'shrinkage'
From CTV News, Scarborough, Ontario
Tuesday, November 24, 2009
RCMP have solved a bizarre mystery: How did $15.3 million in gold vanish from the Royal Canadian Mint? And while their report is still two weeks away, CTV News has learned the answer.
"Senior government officials say there was a colossal error at the mint itself," said CTV Ottawa Bureau Chief Robert Fife on Tuesday night.
Mint officials double-counted some gold bullion they sold, and underestimated the shrinkage of the gold during processing.
The federal government had withheld bonuses for mint executives until the mystery was solved. It's unclear whether those bonuses will still be paid out.
Junior Transport Minister Rob Merrifield, who's responsible for the mint, called in the RCMP on June 9 after he learned that an audit would not "rectify the problem" of the missing gold. That's about 10 weeks after the government first learned of the missing gold.
The Deloitte and Touche audit cost taxpayers $360,000.
Ottawa now requires the mint to report on inventory levels of metals every three months.
Last month, Liberal critic for Crown corporations Joe Volpe said the security, reputation and the quality of the Canadian Mint's product has been compromised.
In early June, it was discovered that there was an unreconciled difference between the value of gold on the mint's books and the physical count of gold for the 2008 fiscal year.
* * *
Join GATA here:
Vancouver Resource Investment Conference
Sunday and Monday, January 17 and 18, 2010
Hyatt and Fairmont Conference Hotels
Vancouver, British Columbia, Canada
* * *
Support GATA by purchasing a colorful GATA T-shirt:
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:
* * *
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit: