Taxpayers Federation responds to Provincial Auditor's Report of misappropriation of public money

WINNIPEG: The Canadian Taxpayers Federation (CTF) today called on the Minister of Family Services and Housing to ensure that Hydra House executives are relieved of their duties following a report from Manitoba's Provincial Auditor which found public monies were used for benefits to executives, not for the direct care and maintenance of Hydra residents.

"The provincial government needs to send a strong message and not only fire the executives of Hydra House, but demand that money be paid back," stated Manitoba Director Adrienne Batra. "The CTF supports all of the Auditor's recommendations to implement a policy framework to ensure Hydra financial statements include a separate statement of administrative expenses and for the province to seek legal advice as to whether it can take action to recuperate taxpayer's money that was not used for Hydra residents, " added Batra.

According to the Provincial Auditor's report, over a six-year period up to five Hydra executives received payments of $3.8 million in salaries, bonuses and consulting fees. The report went on to say: Certain costs charged by Hydra to its programs were of a nature or extent not anticipated to be necessary in the Province's funding formula. Such spending reduced the amount of public monies available to provide direct client care services.

"Not only is this a blatant misuse of taxpayer's dollars, Hydra executives have done a great disservice to the residents of Hydra House to line their own pockets and the province must re-evaluate its funding to this organization," concluded Batra.

Hydra House is a for-profit body, relying solely on public dollars to provide services. The Winnipeg-based agency houses disabled children and adults.