June 1, 2010

Nothing "Prudent" About Management of Ontario Lottery and Gaming

News:

 

The Auditor General of Ontario today released his report with further evidence of offensive spending habits at Ontario Lottery and Gaming.

“The province has allowed it (OLG) considerable flexibility in making financial, human resource and administrative decisions,” said Auditor General McCarter. “At the same time, OLG is a public agency, and it is therefore reasonable to expect it to manage public resources prudently.”

The Ontario PC Caucus has already uncovered numerous OLG expense abuses including gym memberships, liquor tabs, car detailing, and condo cancellation fees. The Auditor General’s Report builds on these revelations and details how OLG staff spent millions on hospitality, meetings, corporate retreats, and perks for employees.

When initial revelations broke about the OLG expense scandal, Premier McGuinty attempted to sweep the scandal under the rug, by firing former OLG CEO Kelly McDougald. A settlement of $747,925 plus undisclosed legal fees was reached with McDougald and made public on Christmas Eve.

The OLG is just one of 600 plus provincial agencies.

“At the OLG, everyone is a winner, with performance rewards for all employees. Senior gaming employees enjoyed lavish accommodations and entertainment at conferences held at casinos; resorts and spas. Meanwhile, Ontario’s families and seniors tighten their belts and brace themselves for Mr. McGuinty’s harmonized sales tax,” said PC Finance Critic Norm Miller, MPP for Parry Sound – Muskoka.

“Spending practices at the OLG mirror the government’s own management style, which can hardly be characterized as prudent,” continued Miller.

Quick Facts:

 

- In 2008-2009, OLG staff expensed $1 million in meetings and hospitality expenses.
(AG’s Report, pg. 7)

- OLG spent $1 million annually on corporate retreats and corporate meetings that were held at spas, resorts, an arcade entertainment complex, a boat cruise, and a paintball camp.
(AG’s Report, pg. 11)

- OLG provided executive cars worth up to $57,000 each for 26 employees and car allowances worth up to $24,000 for another 16 employees. These limits are significantly higher than the government’s $30,000 limit. (AG’s Report, pg. 7)

- In January 2008, David Caplan ignored a request from OLG to be exempt from the Management Board of Cabinet travel directive. OLG interpreted this silence as the government approving its request and the expense abuses continued.