Tuesday, February 09, 2021

BC Health authority CEO steps down after report released into alleged misspending

Provincial Health Services Authority CEO Benoit Morin has "left the organization" on the same day a report was shared into alleged misspending by the health authority under his watch.
© Sarah Leavitt/CBC Former PHSA CEO Benoit Morin was
 accused by whistleblowers of writing off roughly $7 million 
in unusable masks from a Montreal-based vendor.

The independent report, commissioned for and shared by B.C.'s Ministry of Health, comes after CBC News brought forward concerns raised by multiple sources, who claimed PHSA had purchased, and eventually written off, roughly $7 million dollars worth of face masks from a Montreal-based vendor.

The whistleblowers also criticized a decision to re-do $17 million worth of renovations at PHSA headquarters, for an added cost of $400,000, in order to supposedly to give Morin a better view of downtown Vancouver and the North Shore Mountains. They also accused 18 PHSA executives and their assistants of enjoying catered meals in the early days of the pandemic.

In its review of the alleged misspending, Ernst & Young found "no evidence of any pre-existing relationship" between Morin and the Montreal-based mask vendor, but did observe a disconnect between the CEO, the board of directors and PHSA staff regarding "the appropriate course of action to pursue" when it came to recourse.

Specifically, the review found PHSA staff wanted "to start legal action" after it was determined the masks did not meet B.C.'s PPE testing protocols, but that Morin and the board disagreed, preferring to negotiate. When that failed, the report says, other PSHA executives pursued legal action without informing the board nor Morin.

Ernst & Young also reports that the Montreal-based vendor filed for bankruptcy in January 2021 and that "the likelihood of any significant recovery" is low.

Staff dismissed, at least in part, over 'lack of loyalty'

The report also states that several staff departures, including PHSA's chief internal auditor were tied, at least in part, to "a perceived lack of loyalty to, and/or friction with" Morin.

According to Ernst & Young, Morin sought to have the auditor terminated for their role in "examining the conflict of interest allegation" against him. The board of directors eventually did fire the employee, citing their "handling of the conflict of interest allegation" as well as their perceived "capacity to continue with the organization."

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