"We all know now that there were inadequate controls and management practices at the house of assembly,'' in his 86-page report, describing the legislature as "an environment ripe for abuse.''
He found 57 former and current politicians from all parties spent nearly $119,000 on alcohol-only expenses.
Other inappropriate expenditures listed in the report:
- $212,000 in double billings
- $201,000 in excess discretionary allowances
- $162,000 for personal items
- $58,000 for vehicle leases and mileage
- $5.4 million in claims with inadequate documentation
But most of the inappropriate spending -- $1.5 million of it -- was for ineligible donations, Noseworthy found.
The bulk of that money came from politicians' constituency allowance accounts, which are meant mainly for office expenses.
"Although it was common practice for members to make donations, the constituency allowance was clearly never intended for such a purpose,'' Noseworthy said.
The auditor general's findings show 108 of the 115 politicians reviewed had used some of their constituency allowances for donations.
Noseworthy said in his report that most members did not abuse the system. But one politician, former finance minister Paul Dicks, was singled-out repeatedly throughout the document for his spending practices.
The report found he spent the following:
- $34,145 in alcohol, amounting to 29 per cent of all alcohol claims since 1989;
- $62,712 in personal item spending, amounting to 39 per cent of all personal spending my MHAs, including almost $60,000 towards artwork.
The scandal first surfaced last year following a series of reports from Noseworthy, alleging that five politicians had overspent their constituency allowances by $1.6 million between 1997 and 2006.
Noseworthy also concluded that $2.7 million in public funds may have been misappropriated to purchase keepsakes such as gold rings, key chains and refrigerator magnets.
The Royal Newfoundland Constabulary has charged former Conservative cabinet minister Ed Byrne, ex-NDP member Randy Collins and former Liberal cabinet ministers Wally Andersen and Jim Walsh with fraud.
A former bureaucrat, Bill Murray, the legislature's former director of financial operations, has also been charged.
The fifth politician, Liberal member Percy Barrett, was never charged. The RNC said last month that there was "insufficient grounds" to charge him.
Premier Danny Williams said the report will lead to a more transparent way of doing business.
"From my own personal perspective we've started this process, we've now completed this process, and we've cleaned it up and I'm pleased with that," Williams told NTV.
"I'm unhappy for anyone who is caught up in the outcome but having said that this had to be done."
Friday's report chronicled constituency allowance spending dating back to 1989 -- the inception of the accounts.
The report, which comes just days before Premier Danny Williams prepares to call an election, will determine how much spending was inappropriate.
With a report from NTV's Michael Connors
