
Sarah Kramer, eHealth Ontario CEO, was a former vice-president of Cancer Care Ontario.
The legislature’s summer recess began yesterday just as the spending and expenses scandal at eHealth Ontario, the second provincial agency set up to create electronic health records for Ontarians, had begun outraging residents. The 14-week break might take some of the glare off of the Liberals as opposition critics are calling for the resignation of Dalton McGuinty’s cabinet Health Minister David Caplan. It is alleged the Minister is involved in a lavish and corrupt spending extravaganza at eHealth, by refusing to fire its chief executive officer at the centre of corruption allegations, Sarah Kramer.
Under the freedom of information Act, the Progressive Conservatives found that eHealth spent $5-million in untendered contracts in only the first four month of inception. The people involved in the scandal have been revealed to all be connected in some way to the dubious contracts being offered. Three of the untendered contracts, for instance, were awarded to a friend of the board chairman for eHealth at a cost of $2-million.
CEO Sarah Kramer who worked with Accenture Inc before her position, gave the company three single-source contracts worth $1.3 million. She also awarded herself a six-figure bonus within four months of starting her position, and double the maximum allowed rate, on top of her exorbitant $380,000 salary. Ms.Kramer tried to justify her illegal bonus as the result of negotiations in “compensation” for the bonus she didn’t get owing to her leaving a former position at Cancer Care.
Ontario Health Minister David Caplan backed this up, but Cancer Care CEO and president Terry Sullivan refuted that immediately:
“She would’ve received some form of bonus here, but it would have been nothing of that scale,” Sullivan said.
Consultants have also contributed to the string of scandals, with Allaudin Merali and Donna Strating each billing about $2,700 a day for their services, their regular flights from Alberta, and accommodation in Toronto and meals. The total cost of the two consultants amounted to an estimated $1.5 million a year.
It isn’t just the untendered contracts, sole-source contracts, exorbitant salaries, bonuses, questionable expenses, and expensive consultants either. It’s the ridiculous pettiness of people earning thousands of dollars a day also choosing to “stick it” to the Ontario taxpayer. The most staggering story has to be the one in which a consultant submitted an invoice for eight hours of work in which she “consulted herself.” Another consultant charging Ontarians $2,700 a day also billed Ontario for a $3.26 muffin and tea. A $300 per hour consultant charged for reading an e-health article that was given to her by her own husband who is, you guessed it, another consultant. There were also charges for watching television, and a secetary was paid $1,700 for a single day.
The scandal has not yet produced any bodies under the bus yet. The chain reaction of buck passing appears to have reached the highest levels, as the opposition has demanded that Dalton McGuinty remove Health Minister David Caplan, integral to the scandal. Mr.Caplan maintains his job, however, and has not even removed CEO Sarah Kramer or board chair Dr.Alan Hudson, despite the growing level of apparent abuse.
Although the Ontario Liberals have managed to break dozens of promises since their election in 2003, including the largest broken promise of not raising taxes when they added health premiums in 2004, they were reelected in 2007 after voters were frightened away by John Tory’s disastrous “faith-based-funding” fiasco. Now the Progressive Conservatives and New Democrats have a real scandal they can sink their teeth into. It’s still early in the Liberal majority mandate, however, and years remain for the Liberals to try and do damage control over this huge abuse of Ontario taxpayers. The Conservatives must elect a new leader who will up to task of holding the Liberal feet to the fire. The party will be selecting a new leader during their convention from June 21-25.