Auditor-General urged to probe Ontario hydro deals

Canadian Press - February 24, 2004

Toronto — Ontario's New Democrats want federal Auditor-General Sheila Fraser to examine the $5.6-million in untendered Hydro One contracts that went to four of the top Tories in Ontario.

NDP legislator Peter Kormos is urging the Liberal government to summon Ms. Fraser, whose work exposed the sponsorship scandal dogging the federal Liberals, to get to the bottom of the contracts to, among others, advisers to former premiers Mike Harris and Ernie Eves.

"It would be appropriate for her to be called in to examine these so-called contracts, the millions and millions of dollars paid to close Eves and Harris cronies, and to determine whether or not there's criminal conduct involved," Mr. Kormos said. "What we see could well give rise to suspicion of fraud, of conspiracy to commit fraud, and there could well be room here for a criminal investigation."

The Globe and Mail reported Tuesday that the contracts, obtained through the Freedom of Information Act, went to Leslie Noble, the co-chair of the Progressive Conservative election campaign; Paul Rhodes, communications director of the election campaign; Michael Gourley, a close adviser to Eves; and Tom Long, a senior Conservative strategist.

They included monthly payments of up to $40,000 for corporate entities associated with Mr. Gourley, $15,000 to Mr. Rhodes, and $13,000 for Ms. Noble.

Mr. Rhodes collected $335,000 for 18 months of work, but also included was a lump sum of $56,000 for what the utility said was "strategic communications advice."

Ms. Noble's firm, StrategyCorp. Inc., received $250,000.

Hydro One is distancing itself from the contracts, saying it cannot say whether the money was well spent, because the work was done for executives — such as former president Eleanor Clitheroe — who are no longer with the company.

One of the contracts showed that Egon Zehnder International, a headhunting firm where Mr. Long is a senior official, received $83,000 to recruit Debbie Hutton, an adviser to Mr. Harris, to work at the utility as its vice-president of corporate relations.

"Charging an $80,000-plus finders fee to get Deb Hutton a job at Ontario Hydro? Give me a break," Mr. Kormos said. "A wink and a nod was all that it took for Deb Hutton to acquire her position at Ontario Hydro, and Tom Long pockets that kind of cold cash for it? That cries out for criminal investigation."

None of the Tories involved have commented on the contracts.