Winnipeg Free Press

Winnipeg Free Press (Newspaper) - July 7, 2004, Winnipeg, Manitoba A4 Winnipeg free press wednesday july 7, 2004 by Eliza Barlow Brandon ? an Alexander woman whose cell phone was stolen kept the same number on her new cell ? and then got a Call from the thief a girl Friend. A 17-year-old Winnipeg youth pleaded guilty to theft under $5,000 in the incident and was sentenced to a year of supervised probation yesterday in bran Don provincial court. Court heard the youth had taken the stolen cell phone with him As he made auditor continued from Page a1 family services minister Christine Melnick said yesterday she has referred the report to the department of Justice. They will review it to determine if it should be referred to police for Crimi Nal Hydra House is a for profit Organiza Tion incorporated in 1985 to provide residential and treatment services to mentally disabled children and adults. At the time of the review it operated Community programs in about 11 facilities around the City servicing about 90 clients. Last year the organization received a total of $5,822,800 in Public funding from the province the Winnipeg regional health authority and other government agencies. Singletons report highlighted numer Ous cases of Public Money being spent to cover personal expenses including Cable Bills pizza deliveries and Home renovations for the Hydra House executives. But Singleton also slams the province for not doing enough to ensure its Money is being Well spent. I a disappointed he said. In 1999 we did a review of child and family ser vices and noted then the weaknesses in control Over external agencies. There has been virtually nothing done since yesterday Melnick vowed to implement All of singletons recommendations including immediately appointing a third party manager to Hydra House to Monitor the organizations finances. Mel Nick said an implementation team will be set up to Field any concerns of Hydra House clients and their families and to review the governments policy on fund ing of external agencies. From now on Melnick what is Hydra House. Hydra House is a for profit organization that provides residential and Community based treatment services to children and adults with severe mental disabilities. The organization was incorporated in 1985 by Larry Manson who remains the chairman of Hydra House to Date. Hydra House relies on government funding to survive. Last year the organization received a total of $5.8 million from the department of family services and housing the Winnipeg regional health authority employment and income assistance the Public trustees office first nations child and family services and other Public agencies. School in Winnipeg totalling said All external agencies in 1999 we $19,200. Will have to enter into a All of this Money was to service Purchase agree did a review. Have been spent on caring ment with the province to and noted for the facility a clients. Receive funding. Such an we estimate that about agreement sets out the then the $98,200 of expenditures terms of services expected Over five years appear to be and the organizations weaknesses of a personal nature. And responsibility when it was not used for the direct comes to financial report in control care and maintenance of ing. The residents wrote sin Singleton said he recon Over external Gleton in his report. Mended such a move in agencies. Singleton also found that 1999, but it was not made a in 2002 an unsecured non requirement by the there has interest bearing loan of province until yesterday. $67,000 was advanced by Melnick also referred the been virtually Hydra House to an arms Case to the provinces jus length company. Tice department to see if nothing done he also uncovered a the government has any number of conflicts of recourse in terms of since then recouping the funds and whether any of the executives involved should be criminally charged. I am quite frankly outraged and angry with what the report contains said Melnick. It puts a whole different slant on our relationship with Hydra House. It is no longer business As usual at Hydra the provincial auditor decided to investigate Hydra House last year after receiving allegations of misuse of funds. Singleton reviewed the Hydra House books from april 1, 1997 to March 31, 2002. During that time More than $3.8 million was paid in salaries bonuses and consulting fees for up to four Hydra House executives and the personal Assis Tant to the owner. Singleton determined if those same five executives had been compensated at a typical not for profit salary of $80,000, Only about $2.4 million would have been paid out. During that six year period Singleton also found tens of thousands of dollars were spent on meals entertainment and personal expenses by executives and staff. In some instances appliances were purchased for the executives and Utility Bills at the executives Homes were paid by Hydra House Money earmarked for client programming. In another entry Singleton found a staffer used $1,600 to Fly to Florida to meet with the owner of the organization while the owner was on Holiday. And in May 2001, Hydra paid $3,961 for an overseas trip for a Hydra employee and their spouse As a Reward for 20 years of service. The Bill for the trip was charged to care More than $10,000 was used in novem Ber 1999 to buy and install two Patio doors at the owners Home. In 1993, Hydra House bought two cars a 1993 Cadillac Seville its for $40,465 and a 1994 Cadillac Eldorado for $42,275. The cars were driven by the owner and his personal assistant. The owner and his assistant reportedly bought the cars from Hydra House in 1999 for $8,000 each. No documents were supplied to prove the Money was received by Hydra House. Between september 1997 and novem Ber 1999 Hydra House made donations to a private senior High interest. In one Case the spouse of an executive received $141,000 Between 1999 and 2002 to provide human resource and recruiting services to the organization. The names of the executives involved Are not published in singletons report but a review of the provinces company a Branch shows Hydra House was incorporated in 1985 by Larry Dale Man son. Manson is also listed As the organization a current chairman. Glen Duke is listed As an executive officer. Diane Lau is the organizations current ceo. Messages left for Manson were not returned. Yesterday Lau said the Hydra House executive had just received a copy of the report and she was not Able to com ment on the allegations. Lau said the organization takes the allegations very seriously and is working with the province to Correct any problems. Our number one focus is to continue to provide Quality care to our clients she said. Tory family services critic Leanne Rowat said she a concerned that client care suffered while executives at Hydra House were using government Money for themselves. She said a Media report in 2002 suggested there was a problem at Hydra House but Tim Sale the family services minister of the Day did not investigate. Instead of looking into it he questioned the credibility of the Media and the former Hydra House ceo who made the allegations she said. his Way across the Prairies after run Ning away from his child and family services worker. The Odyssey began april 5, when Cash a gym bag full of clothes and a cell phone were stolen from the Alexander woman a vehicle. The woman cancelled the phone keeping the same number for her new phone but delayed calling police apparently because she did to want to waste their time. But on the afternoon of april 13, the woman answered her phone and spoke to a girl who said her Boyfriend had told her she could reach him at that number. When the woman got her cell phone Bill awhile later she saw that whoever stole the phone had racked up More than $211 in phone Calls. The Calls began in Alexander just after 2 . On april 5, leading across the country until they stopped in Penticton . Two Days later when Penticton police arrested the youth for driving a stolen car. Judge John Combs ordered the youth to pay $211.54 for the phone Bill. Its not reasonable that she be subjected to that kind of loss just because you fell off the rails on that particular occasion Combs told the youth. ? Brandon Sun ;