Canwest News Service
June 17, 2009
TORONTO ? Dr. Alan Hudson resigned Wednesday as chairman of eHealth Ontario, the provincial agency that became an embarrassment to Premier Dalton McGuinty when it was revealed workers had taken advantage of lax hiring rules to award bloated contracts to consultants, some of whom nickelled and dimed the public by expensing such items as cups of coffee and chocolate chip cookies.
"It became obvious to us that there was a real problem associated with sole-sourcing of consulting contracts," McGuinty said Wednesday in announcing Hudson's departure, adding that the government has to be able to demonstrate that consultants who win contracts do so in a fair, open process.
"The rules that we've had in place for government dealings with consulting firms are outdated and clearly inadequate," he added. "They don't go far enough to protect taxpayers. I take responsibility for this."
But the Opposition said the premier's mea culpea is too little, too late.
"It's pretty obvious to any onlooker and I think to any Ontarian, that when you are dealing with taxpayers' money ? which is not your money, it is taxpayers' money ? you have to be careful," said Peter Shurman, a Progressive Conservative member of the legislature.
EHealth, which was created to place the province's health-care record system online, has been under siege in recent weeks after it came to light that several consultants were offered lucrative contracts that weren't tendered while others charged and expensed such minor items as cookies, tea and coffee while being paid, in some cases, up to $2,700 per day.
Last week, the provincial government sacked Sarah Kramer as president of eHealth amid allegations of cronyism and questionable procurement practices in which large contracts ? totalling $5 million ? were awarded without tenders from September 2008 to January 2009.
The contracts revealed a tangle of relationships between many senior eHealth officials, including Hudson and his former colleagues and associates.
Kramer left with $317,000 in severance, an amount that prompted the opposition to call for the resignation of Health Minister David Caplan.
Hudson, a neurosurgeon, was McGuinty's choice to lead the team that was to modernize the province's medical records system. He was appointed eHealth Ontario's chairman in September 2008, after impressing the premier by spearheading a strategy that reduced the province's wait times for several medical procedures, including knee and hip replacements.
His goal was to create a digital record-keeping system by 2015.
"As to Dr. Hudson, I believe he has done the honourable thing. He's made it clear that at this point in time, he cannot bring the kind of leadership necessary to eHealth that we need . . . So, I thanked him for the work he has done and commend him for the step he has taken," said McGuinty, who added he did not ask for Hudson's resignation.
Rita Burke, who most recently served as chairwoman of the provincial utility Hydro One, and was a top bureaucrat in the government of former Ontario premier Mike Harris, is to replace Hudson, 71, effective Thursday.
In making the announcement Wednesday at Queen's Park, McGuinty also revealed a set of rules which will eliminate such sole-sourced contracts by making it mandatory for ministries and agencies to put contracts out for competitive tender before awarding them to consultants. Previously, a loophole had allowed the process to be accelerated when it was believed the consultant needed to be in place right away, in the name of urgency.
"I don't think it would be a question if this contract had been won as a result of a fair, competitive process. I think that's the big issue and that's why we think it's important for us to eliminate sole-sourcing," he said.
McGuinty also said consultants have to act, too.
"If you're being paid by Ontario taxpayers, you better try to ensure that the work that you do and the bills you submit are in keeping with the values and expectations of those who are ultimately footing the bill.
"If you couldn't sit down in front of the family at the breakfast table and say I'm submitting a bill for this or for that and look them straight in the eye, then maybe you shouldn't be submitting that bill."
Asked about a report that one consultant had won a contract to organize a Christmas party, McGuinty said the contract was "unacceptable."
"It makes absolutely no sense to me to pay consultants to plan a Christmas party. Unacceptable."
He said two separate audits are underway into the consultant contracts, and his government will act on the recommendations.
McGuinty also announced consultants will no longer be able to expense such hospitality purchases as soft drinks and snacks.
He said he was also open to finding a way to widen the sweep of freedom of information requests to include agencies now excluded from them.