Millions in OLG expenses called excessive: auditor
Spending on junkets, entertaining clients and luxury autos has tailed off since CEO firing, board resignations in August, 2009
Karen Howlett
Toronto — Globe and Mail Update
Published on Tuesday, Jun. 01, 2010 10:19AM EDT
Last updated on Tuesday, Jun. 01, 2010 1:19PM EDT
Ontario’s lottery corporation sent employees on all expenses paid junkets to spas, ski resorts and paintball camps, and provided 26 of its senior executives with luxury, foreign-made automobiles ranging in price from $41,519 to $57,512.
The expense practices at the Ontario Lottery and Gaming Corp. are outlined in a special report unveiled on Tuesday by Jim McCarter, the province’s Auditor-General. Mr. McCarter says the lottery corporation had reasonable policies governing employee expenses during the 18-month period he examined, ending in September, 2009. However, he says, certain types of expenses were not covered by the policy, including wining and dining employees at staff meetings.
The free-wheeling spending came to an abrupt end last August, when the government cleaned house at the lottery corporation – it fired the chief executive officer and the entire board of directors resigned. Under new chairman Paul Godfrey, the corporation has adopted more stringent rules for wining and dining its own employees.
The auditor has produced a report that is fair and balanced, Mr. Godfrey said in a statement on Tuesday.
“It contains valuable recommendations giving me and my colleagues on the new Board clear direction on work that remains to be done,” he said.
The auditor’s report, done at the request of Finance Minister Dwight Duncan, says the lottery corporation spent about $1-million on hospitality during the fiscal year ending March 31, 2009 and incurred excessive costs for some of these events.
Spending on junkets, entertaining clients and luxury autos has tailed off since CEO firing, board resignations in August, 2009
Karen Howlett
Toronto — Globe and Mail Update
Published on Tuesday, Jun. 01, 2010 10:19AM EDT
Last updated on Tuesday, Jun. 01, 2010 1:19PM EDT
Ontario’s lottery corporation sent employees on all expenses paid junkets to spas, ski resorts and paintball camps, and provided 26 of its senior executives with luxury, foreign-made automobiles ranging in price from $41,519 to $57,512.
The expense practices at the Ontario Lottery and Gaming Corp. are outlined in a special report unveiled on Tuesday by Jim McCarter, the province’s Auditor-General. Mr. McCarter says the lottery corporation had reasonable policies governing employee expenses during the 18-month period he examined, ending in September, 2009. However, he says, certain types of expenses were not covered by the policy, including wining and dining employees at staff meetings.
The free-wheeling spending came to an abrupt end last August, when the government cleaned house at the lottery corporation – it fired the chief executive officer and the entire board of directors resigned. Under new chairman Paul Godfrey, the corporation has adopted more stringent rules for wining and dining its own employees.
The auditor has produced a report that is fair and balanced, Mr. Godfrey said in a statement on Tuesday.
“It contains valuable recommendations giving me and my colleagues on the new Board clear direction on work that remains to be done,” he said.
The auditor’s report, done at the request of Finance Minister Dwight Duncan, says the lottery corporation spent about $1-million on hospitality during the fiscal year ending March 31, 2009 and incurred excessive costs for some of these events.
