When organizations like Enron and Nortel were late on issuing their annual reports it wasn't because they were waiting to spring good news on people. In fact, it was just the opposite. History bears out just how bad the news was: fraud, theft, billions of investment dollars lost and executives in jail. Ontario Lottery and Gaming (OLG) has at least one thing in common with Enron and Nortel. Its last annual report was made available to shareholders - read taxpayers - two years ago. Its annual report for 2005/2006 is apparently sitting on Premier McGuinty's desk. And the report for the last fiscal year (2006/2007) is nowhere in sight either. What is the premier hiding

The Ontario Lottery and Gaming Corporation Act of 1999 is very clear, outlining the obligations both of the OLG and the government for disclosing annual reports. The act states that every year the corporation shall provide the Minister a copy of the annual report. Every year the Minister shall provide a copy to the Lieutenant Governor in Council and then shall table it in the Legislature. David Caplan is the Minister responsible for the OLG. He has failed to comply with the law. He has failed to released the OLG annual report as required.

Shareholders of any publicly traded company would not accept this kind of behaviour nor would the securities regulator. The company's shares would be suspended from trading and the company would risk being delisted from the exchange altogether. Because the sole shareholder of the OLG is the government of Ontario, taxpayers have no recourse to force the reports to be disclosed and must continue to deal with the government hiding this critical information about one of its crown corporations - a government company already under a cloud of controversy involving fraud.

The purpose of an annual report is to report on the stewardship of the company over the previous year; to educate and inform shareholders (potential as well as current); to report on performance during the period under review and put that performance in context; to explain the objectives of the company; to outline strategy and future direction; and, to fulfil legal and regulatory responsibilities.

The OLG generates $6 billion in annual revenue as an Ontario Crown Corporation. Yet, taxpayers don't get to see audited statements or reports telling them anything about whether this money has been well-managed on their behalf. The province is projecting to receive $1.8 billion this year from the OLG to apply to the treasury for programs like hospitals, not-for-profits, amateur sport, gambling addiction and general revenue.

It cannot be a coincidence that the periods covered by the missing reports are the same periods covered by the Ontario Ombudsman and his investigation into wrong-doing at the OLG. Mr. Marin's report, A Game of Trust, concluded that fraud and scandal are rampant at the OLG. Since his report was made public, senior executives, including the CEO, have been fired and demoted.

The OLG provides 2.5% of revenue for government program spending. Minister Caplan and Premier McGuinty should be held accountable for playing hide and seek with this critical financial disclosure. The act requires it and taxpayers deserve it.
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Kevin Gaudet, Ontario Director, Canadian Taxpayers Federation

Let's Talk Taxes

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