QC - Quebec police examining report on misspending by horse racetrack agency
12 Dec, 10:10 PM
QUEBEC (CP) - The Quebec government referred to the provincial police the auditor general’s report which highlights questionable spending and $15 million in missing funds given to the province’s horse racetracks.
After reviewing the report, Finance Minister Michel Audet handed the document to the head of the provincial police force, said a spokesman for the minister.
“It will now be up to the (Surete du Quebec) to decide what steps to take,” Michel Rochette told The Canadian Press.
In his report to the national assembly, auditor general Renaud Lachance shed light on “questionable” and “incorrect” management practices of the provincial agency created in 1999 to run the province’s four tracks in Quebec City, Montreal, Trois-Rivieres, and Gatineau.
Between 1999 and 2005, the former Crown corporation and its subsidiaries received nearly $260 million from the government, including $183.8 million in direct support and $75.9 million from video lottery terminals.
Procedures were so deficient that Lachance was unable to trace $15 million in expenditures.
Lachance also disclosed “a history of horrors” on other matters.
For example, a manager earning $100,000 received $82,500 when he was fired. The agency then paid him more than $350,000 for the same functions over the next two years.
nother manager was reimbursed $12,000 to cover the cost of renting an airplane. No evidence could be found that an advance of $22,000 was repaid before he left the agency last year.
Over six years, 14 managers received reimbursements totalling $738,600, even though nearly half the sum was unjustified or insufficiently explained.
The auditor general also revealed situations when the horseracing agency SONACC contravened tax regulations.
One manager received $22,000 to cover operating and gasoline costs over three years for his automobile even though the money wasn’t listed as a taxable benefit.
Employees and managers benefited from “free meals” totalling $1 million at racetrack restaurants.
Lachance described the situation as “an open bar.”
Five of the nine members of SONACC’s board of directors also received questionable benefits.
One administrator pocketed $42,750 for attending golf tournaments and business meals.
Others received $20,000 for meetings even though there is no evidence they took place.
Over five years, SONACC gave board members $781,000 (including $444,000 in remuneration) even though the government opposed paying publc officials who worked part-time.
In June 2005, the Charest government fired all board members after it initiated the privatization of the racetracks.
The centres were taken over by a Quebec company owned by Senator Paul Massicotte.
During a news conference, Lachance invited the government to take steps to recover some of the money.
The Quebec government said it will weigh its options, but said any irregularities occurred when the Parti Quebecois was in charge and former premier Bernard Landry was finance
Minister.
Copyright © Canadian Press.
