The scandal at Cancer Care Ontario comes as the province’s auditor-general revealed a $1 billion spending scandal at eHealth. That scandal has caused the resignation of Health Minister David Caplan, as well as former CEO Sarah Kramer, and Chariman Alan Hudson. The Ontario government’s internal audit was released October 7, 2009, the same day the auditor general brought in his report.
Cancer Care Ontario is an organization operating at arms-length from the Ontario government responsible for the conduct of cancer treatment.
Internal Audit Reveals Untendered Contracts, Ties To ex eHealth CEO Kramer
The provincial government’s internal audit revealed Cancer Care Ontario had the same problems as at eHealth. Cancer Care Ontario handed out consulting contracts without tendering them out. These included $18.7 million in deals to one company over the course of two years, including follow-up contracts to the original ones. The internal audit connected the money to ex eHealth CEO Sarah Kramer, who signed at least 22 of 26 follow-up deals. According to CBC.CA: “The findings of this audit clearly indicate that the competitive procurement processes, file organization, and consistency of documentation require substantial improvement.” Some media reports say companies that received these rich contracts include the Courtyard Group, and Accenture, the same ones that benefited from eHealth’s misspent consulting fees when Kramer was in charge of that organization.
Current CEO Terrence Sullivan hasn’t given any media interviews, but did release a statement. According to CBC.CA, he took full responsibility for any mistakes made: “I take full responsibility for the weaknesses identified in the report, and the burden we now share.”
Other interesting details in the report included:
- The Director of Finance had the power to create, approve, and review new purchase orders
- Some employees were hired at an additional $17-23 thousand above the highest salary range and:
- Employee records were kept in an unlocked cabinet
Additionally, only 6% of out-of-pocket expenses were submitted with receipts.
Cancer Care Ontario Defends Itself Against Audit Claims
The agency defended itself against the audit. Agency CEO Terry Sullivan claimed in remarks published by CBC.CA the expense of hiring outside help was necessary: “When you’re asked to move aggressively in a short window of time, every company has to decide- do I hire staff, do I make it or buy it.”
According to the government’s internal audit, the arms-length agency went against their own policy of paying for social events. These included two picnics; one a luncheon for 200 people, totaling $10,000 at Boyne Conservation Area, money that hasn’t yet been recovered. The second is justified in the Toronto Star as a “small team-building event” for $108, which, was returned. CEO Sullivan said in the same article: “We accepted paying for social events is against our own policy. It has been made clear for everyone in the organization we can’t use organizational funds for such purposes.”
Opposition Leader Tim Hudak has jumped on the McGuinty government. In a CBC.CA article he accused the Premier of hiding the Cancer Care Ontario scandal: “The first Premier to ever hide one scandal behind another scandal.” He further accused the government of favouring agencies allied with the Liberals: “Liberal friendly consultants were given special access to taxpayer dollars.” NDP (New Democratic Party) leader Andrea Horwath added the observation that the McGuinty Liberals seemed not to notice the scandal in comments published by the Toronto Star: “It seems that the McGuinty government was again caught asleep at the switch.”
Both opposition leaders are calling for the government to ask the auditor-general to look into the Cancer Care Ontario spending scandal. Health Minister Deb Matthews has so far refused.
Laura Steiner - First hand experience covering politics at all levels; municipal, provincial, and federal.
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