Archived News Releases

July 6, 2004

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Names Third-party Manager; Implements Action To Improve Accountability and Transparency

Minister of Family Services and Housing Christine Melnick announced today a five-point action plan aimed at addressing the recommendations of the Office of the Auditor General in its report titled Investigation of Hydra House Ltd. and A Review of the Related Department of Family Services and Housing Financial Accountability Framework.

"I would like to thank the auditor general for his work. I agree with him that it is completely unacceptable that Hydra House, a privately owned corporation, did not use public funds as intended," said Melnick.

"Our priority and primary concern is the well-being of our clients, to ensure they receive quality care. It is also our responsibility to make sure that public money is used for its intended purpose. To ensure greater accountability and transparency, we have immediately implemented a five-point action plan to make certain that our clients will continue to receive quality care and to ensure there is an appropriate use of public funds."

Under the five-point plan the provincial government has:

·         Appointed LeVan Hall as interim third-party manager to monitor and ensure financial accountability of Hydra House.  Hall is a respected partner in the accounting firm Hall Molgat with wide-ranging experience in ensuring financial accountability of public funds.

·         Created an Implementation Team made up of officials from across government and the not-for-profit sector to put into practice the Auditor General's recommendations. The implementation team is responsible for:

   - listening to any concerns regarding Hydra House from clients and their families (Manitobans who have had concerns are encouraged to call 204-945-8137.);

   -  reviewing the government's policy with respect to funding external agencies;

    -  reviewing the current per-diem funding model and recommending changes; and

    -  providing an interim report in the fall.

Notified all external agencies explaining that, as a condition of funding, a Service Purchase Agreement will now be required.

Started reviewing current legislation to ensure transparency of agencies receiving the majority of their funding from public sources.

Forwarded the auditor general's report to the Public Prosecution Branch of Manitoba

Justice .

The auditor general's report covers the period between 1997 and 2002. The minister noted that steps have been taken to strengthen financial accountability of external agencies.

"I am committed to working on measures that will provide quality care, while providing for greater accountability, transparency and financial integrity of external agencies," said Melnick.

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