Winnipeg Free Press

Winnipeg Free Press (Newspaper) - July 8, 2004, Winnipeg, Manitoba A4 Winnipeg free press thursday july 8, 2004 Hydra continued from Page a1 Hydra House is a private Winnipeg company that a provincial auditor has cited for miss pending Over $1 million in monies from government. A report by Manitoba auditor Gener Al Jon Singleton that said Money from the government went to excessive salaries and bonuses cars meals and furniture and trips overseas and to Florida. The province has appointed a third party manager to oversee the for profit company which received $5.8 million in Public funding last year. At the time of singletons review Hydra House oper ated about 11 Winnipeg facilities for about 90 children and adults with Dis abilities. In a june 24 audit response released As part of the audit yesterday Hydra House said the company is working with the province to address the issues and concerns. The response said current Hydra House staff have done nothing wrong but the former chief executive officer. Was released from his position due to concerns about his ability to perform his duties As the senior executive in a 2000 lawsuit filed in the court of Queens Bench former Hydra House ceo James Alexander Small alleges that he joined Hydra House in 1988. When Hydra House fired him in 2000, he was the ceo and had a salary of $165,000, plus an expense account. Small claims he was wrongfully dismissed. In a statement of defence to Small a lawsuit Manson and Hydra House admit Small was employed As ceo and paid a salary of $165,000 in 2000, but they claim his dismissal was justified. The allegations and counter allegations remain unproven. In addition to corporate purchases of the two Cadillac Small alleges he was also asked to support and help ratify. The Purchase by Hydra House of Man sons Home at 83 Roselawn Bay in Winnipeg. City records show that Hydra House has been the registered owner of the Home since at least 2000. It is a group Home said an employee who answered the door yesterday. Singletons audit does not identify this property but does refer to a property Sale transaction from the owner to Hydra that was not recorded in an open and transparent manner.?. The assistance of Hydra House in the Purchase of a condominium at 55 Nas Sau St. For Manson to live in. This Alle gation which Hydra House and Manson deny in court documents was not mentioned in the report of Singleton who investigated Hydra House finances. Although Small alleges Hydra House bought the Condo City records show it has been jointly owned by Manson and Gordon a. Heaman since at least 2000. A pay raise from $25,000 to $50,000 for Gordon Heaman during a period of time when or. Heaman was occupied in full time employment at Manitoba Tele phone City tax records show Manson and Heaman Are registered owners of a Condo at unit 2306, 55 Nas Sau St. A full benefits package for Heaman with London life plus pension contributions from Hydra House. Manson and Heaman could not be contacted by Telephone yesterday. Cynthia Lazar an attorney for Man son and Hydra House said yesterday the lawsuit filed by Small has been in limbo since her clients filed a statement of defence in Early 2001. If Small wants the Case to proceed it is up to him to move on to the discovery stage of the Case she said. In Lazar a opinion singletons audit report does not lend credence to Small a allegations. In their statement of defence to Small a lawsuit Hydra House and Man son allege Hydra House had cause to Ter Minate Small a employment. They alleged Small hired his friends and relatives to positions for which they were not qualified and that he used Hydra House Money to make a $10,000 Dona Tion to his former school and directed the school to Issue the tax receipt to Small personally. Small and his attorney could not be reached yesterday to respond to those allegations. But in his lawsuit Small claimed he was a valuable and Loyal employee who performed his duties faithfully and diligently. Singleton said yesterday the province did to have a service Purchase agree ment in place that set out the rules for dealing with any Agency profits or How much they should be. All of Hydra houses funding came from the Public coffers through the province Winnipeg regional health authority and other government agencies. The government has to reviewed the funding formula for a Long time and As you can see in our report there Are a number of cases where Hydra House was Able to make huge profits providing service because they were being funded on a basis that was much higher than the Cost of providing the service he said. There should have been an under standing of How much profit it was reasonable for Hydra House to earn and what should happen if they should earn a higher surplus than that either return ing it to the province or investing it in the programs in some the company want doing anything illegal but anyone who handles Public Money has a duty to be prudent and care Ful with what they do with it said sin Gleton. province accused of neglect renovations for the organizations top Hydra House was released tuesday. ?99 auditor general executives. The report proved to be the impetus but he also found the situation might said family services minister Christin report ignored critics have been detected earlier or avoided Alto Melnick. She could not explain Why such Gether if recommendations he made in a a condition was not implemented after by Leah Janzen 1999 review of child and family services singletons 1999 report recommending had been implemented by the province. The use of spas. T in the 1999 review Singleton recon Melnick said 90 per cent of the serv Ceory Leader Stuart Murray and mended the province negotiate service providers have now signed an spa with Manitoba a auditor general have provider agreements with All external the the province for ignore agencies which outline conditions of Murray accused the province of Dis ing a 1999 report that made recon funding performance expectations pro missing singletons 1999 recommend emendations aimed at ensuring social visions for inspection and audit of tons regarding spas. If implemented service agencies Arent misusing pub Agency records and provisions for Ter Murray said the recommendations Lic Money. Mina Tion of the agreement. Would have Given the province a tighter auditor general Jon Singleton also at the time the province committed rein on outside agencies and May have expressed frustration that a government to implementing a plan to have spas helped them identify miss pending a committee established to provide Addi negotiated with the roughly 50 external Hydra House earlier. Tonal oversight of publicly funded Agen agencies by March 2002. That deadline Here we Are five years later and All ocies is not doing enough to ensure the was not met. A sudden the Premier is outraged an Money is properly spent. Singleton found that at the end of he a going to get to the Bottom of this on tuesday Singleton released a March 2002, almost half of the agencies Murray said. Its funny that once you be review of Hydra House a social service still did not have agreements in place. Been caught you find that provides residential and this situation confirms that there Murray urged the province to solicit Community based care to mentally Dis was minimal action taken on the 1999 the auditor general to sift through Thea bled children and adults. Audit recommendation he wrote in his books of every single social service in his audit Singleton found the report. Agency and Issue a Public report on his Agency misspent Over $1.5 million Dur the Manitoba government did not findings by the end of the year. Ing a six year period on bonuses trips make the signing of an spa a condition cars entertainment furniture and Home of funding until the Singleton report on. ;