Ontario integrity czar to review expenses, says McGuinty

Jordana Huber, Canwest News Service : Tuesday, September 01, 2009 12:00 AM

TORONTO - Premier Dalton McGuinty warned executives at Ontario's arm's-length agencies to look out for the interests of taxpayers when it comes to expense claims or be "visited with the full consequences of their failings."

One day after the province cleaned house at the Ontario Lottery and Gaming Corp., which is under fire amid revelations senior executives billed taxpayers for expenses including alcohol, dry cleaning and luggage replacement, McGuinty said he had a message for the leadership of the province's 600 agencies, boards and commissions.

"You must lead by example," McGuinty said. "If you doubt our commitment, take a look at the example of which we are making of OLG. If you fail to abide by the rules, there will be consequences."

The board of the OLG resigned en masse Monday and its CEO, Kelly McDougald, was fired "with cause."

Ontario's auditor general has been called in to review the expenses of OLG senior staff and executives, and expenses deemed "inappropriate" will have to be reimbursed, McGuinty said.

The premier also said Tuesday, starting this fall, expenses claimed by employees at the province's 23 largest arm's-length agencies, commissions and boards will be reviewed by the province's integrity commissioner.

Under the new rules, employees who claim unacceptable expenses, such as personal items or alcohol for staff functions, will repay taxpayers. The new rules make employees at agencies, boards and commissions subject to a similar oversight process as ministers and political staff.

In addition, the province will also undertake an external review of the 600 arm's-length bodies to ensure they are being held accountable.

McGuinty said the "overwhelming majority" of their employees are playing by the rules, but cautioned "just because you operate at arm's length from our government doesn't give you the right to straight-arm taxpayers."

On Monday, the province released thousands of pages of expenses from OLG executives and senior staff detailing everything from expensive bottles of wine to pen refills.

The developments at OLG comes on the heels of this summer's spending scandal at eHealth Ontario.

In June, the province fired Sarah Kramer as president of eHealth amid allegations of cronyism and questionable procurement practices in which millions in contracts were awarded without tenders.

Opposition parties slammed the government Tuesday for failing to hold the ministers responsible for the OLG and eHealth to account. "The buck stops at the minister's desk," Progressive Conservative Leader Tim Hudak said. "Elected officials are in charge of oversight in these departments.

"All we got today was more excuses and more process. What taxpayers want to see is a minister's head on the chopping block," Hudak said.

NDP Leader Andrea Horwath said the only time the government takes responsibility is "when their hands are already caught in the cookie jar."

The new oversight rules announced by McGuinty will apply to:

- Ontario Lottery and Gaming;

- Ontario Power Generation;

- Hydro One;

- Independent Electricity System Operator;

- Ontario Power Authority;

- Workplace Safety and Insurance Board;

- LCBO;

- eHealth;

- Cancer Care Ontario;