

Moderators: sky's the limit, sepia, Sulako, lilfssister, North Shore, I WAS Birddog
orngecrush wrote:Auditor General’s initial report on ORNGE ‘misleading,’ lawyer charges
A lawyer involved in many of ORNGE’s dealings says the provincial auditor’s initial report into the air ambulance service was “misleading” and that the government was fully briefed on the organization’s finances.
Alfred Apps, former president of the Liberal Party of Canada, gave the explosive testimony at an all-party, public accounts hearing into the ORNGE scandal on Wednesday.
The Progressive Conservative and New Democratic committee members were stunned by what Apps had to say.
“I think Mr. Apps today demonstrated, certainly an ability to spin information, he called into question the integrity of our auditor general,” said PC MPP Frank Klees.
“He made it very clear, on the other hand, the government of Ontario and a number of ministries were fully briefed on what the intent of ORNGE was and said nothing,” Klees said.
Apps began his testimony by saying his ability to properly respond to “endless” streams of allegations in the media has been severely circumscribed by professional duties of confidentiality to ORNGE and his job as a lawyer. ORNGE has a right to client-lawyer privilege, he said.
But the public does have a right to know, he insisted.
“The government and people of Ontario have every right to learn the truth about what the legal, accounting, investment banking and other financial professionals did for ORNGE, on behalf of ORNGE and why we did it,” he said.
It has been said ORNGE and its lawyers, “including me,” said Apps, misled the minister of health and the government.
“This, you will understand, is offensive in the extreme, particularly for someone of my personal background, my long history of civic engagement and my hard earned professional reputation,” Apps said.
The record speaks for itself, he said.
“To the extent of all matters within my knowledge, the board and management of ORNGE more than did their job and the government was thoroughly and painstakingly and in all cases truthfully briefed in advance of ORNGE taking any of these actions.
“If the government had ever raised any objections to anything I am confident ORNGE would not have proceeded.”
ORNGE was a “great Ontario company with an extraordinary global future,” he said.
But now it is a case study in the failure of public administration, but that is not due to a lack of transparency of ORNGE’s part or lack of government control.
However, there is an absence in parts of the public sector to properly understand and manage public-private partnerships.
When asked by NDP MPP Jagmeet Singh, a committee member, what was the problem at ORNGE, Apps said based on what he has seen, the only issue is the salary paid and whether or not that was appropriate.
“Because everything else I have read is frankly wrong,” he said.
Health Minister Deb Matthews should “justifiably” feel misled, said Apps.
“I believe the draft report tabled by the auditor general in November was so riddled with error,” he said. “If I had been the minister, and I had gotten it, I would have had the same reaction when coupled with information about the salary.”
Last month, Auditor General Jim McCarter issued a searing indictment of the provincial government’s lack of oversight at ORNGE.
He found Ontario threw $50 million in funding increases at the service over five years but never checked how taxpayers’ money was being spent.
McCarter and his team reported ORNGE air ambulance bought more aircraft than it needed; purchased a fleet of land ambulances that often sat idle; and used public money to fund a controversial real estate deal that put $9 million into a for-profit company owned by ORNGE executives.
However, the provincial government had oversight over ORNGE as it saw regular financial statements and were well aware of them, Apps said.
“ORNGE’s financial statements, including with respect to its for profit subsidiaries were always audited by KMG, provided to the government and included to public accounts,” he said.
What little Apps said he understood about an agreement with Italian helicopter manufacturer’s AgustaWestland, he saw “absolutely nothing inappropriate” with it.
“But I did not advise on it,” he said.
The OPP is investigating a questionable $6.7 million payment from Agusta Westland to ORNGE for marketing services.
“For the record, I also want to make it clear that I have no knowledge of any wrongdoing, criminal or otherwise, in respect to anyone associated with ORNGE.”
Apps said there is no way he could adequately address all ORNGE questions in the 30 minutes he was given to testify. “Serious issues of public policy and health administration are at stake,” he said.
Important questions of justice and reputations of individuals are also at stake, added Apps who vowed to come back as much as needed to answer questions. “This is important public business.”