McGuinty fiddled while ORNGE officials danced and partied....

The more we learn about the ORNGE morass (Ontario's air ambulance service) the more appalling it becomes. The latest revelation is the astonishing salary increase given to the former chairman, Chris Mazza (a former emergency room doctor), i.e.,

"Back in 2007, Mazza’s annual salary was $298,000. That was the last year his salary was made public on the provincial sunshine list. The next year, ORNGE began creating for-profit companies and took the position that executive salaries would become secret.

Sometime in 2009, Mazza, a former emergency room doctor, told board chairman Rainer Beltzner and others that his skill and expertise had caught the attention of another company. Mazza did not identify the company and the board did not ask for proof. The Star has not been able to confirm that a company and job offer existed.

“He was being poached by a private firm, that’s what the board was told,” the source said. “His compensation had to be increased.”

More on the ORNGE investigation

Enter Luis Navas, a compensation specialist Mazza met when they both did their executive MBAs at the Richard Ivey business school in London, Ont.

Navas wore several hats at ORNGE over the years (he is now gone from the air ambulance firm). He was a board member, chair of the board’s compensation and governance committee, and eventually a paid executive (how much ORNGE will not say) working on international business in Florida.

In talks that involved Navas, a decision was made by the board to increase Mazza’s salary and bonus to $1.4 million in 2010. Also, in late 2010 and early 2011, Mazza was given an additional $1.2 million, made up of interest-free, no-term loans and a large cash advance against a future bonus. Some of that money went to purchase and renovate Mazza’s new home in Etobicoke. ORNGE has attempted to recover some of that money.

According to the recent testimony of Beltzner, the ORNGE board hired “independent external consultants to conduct an exhaustive study and provide recommendations to the board on compensation for both ORNGE executives and the board.”

Beltzner, in his testimony, did not mention Mazza’s job offer as a catalyst for increased pay.

But Beltzner did say that in late 2011, with storm clouds circling around ORNGE, he “became aware that Dr. Mazza’s professional corporation was being paid substantial amounts for services apparently not being provided. I took immediate steps to stop these payments and informed the ministry’s internal auditor.”

Beltzner was paid $200,000 a year as chairman. The person who replaced him as chair does the job as a volunteer." Kevin Donovan, Toronto Star.

Not bad, eh? Wouldn't you like to have a salary increase of 245% in a time of recession? Meanwhile, McGuinty smugly complains about the cost of doctor's compensation in Ontario. Can you believe it! The man has absolutely no shame whatsoever.

Dalton McGuinty and Hydro One (OPG) ... A study in incompetence!

Specifically: It is a study of incompetence, waste, greed and downright stupidity on the part of Hydro One and various politicians--including Ernie Eves and Dalton McGuinty.

Consider this: In 2002 the then Chairman of Hydro One, Eleanor Clitheroe, was fired because she: "used credit cards contrary to company policy. They [Ontario Power Group Board] said she also obtained club memberships at the company's expense. Many of those memberships had no business-related purpose, the board said. Clitheroe is also said to have used Hydro One service providers to do renovations to her home."

At the time she made over $2.2 million, including $174,000 for a car and $172,000 in vacation pay. Clitheroe also stood to get $6 million in cash if she left Hydro One for any reason, and she stood to receive an annual pension of up to $1 million."

During Clitheroe’s tenure, no bookkeeper, accountant, civil servant or administrative chief at Hydro One ever noticed that the same employee costing us $330,000 in limousine rides was taking some $214,000 in car allowances. If any of them did notice, they kept mum. During the entire Clitheroe reign, there were no enterprising reporters ringing alarm bells.

Oh, and by the way, she got a $6.5M severance package and a $300,000+ annual pension when she went out the door.

And if that isn't bad enough, her replacement chair, Tom Parkinson 'resigned' after it was disclosed that he improperly charged his secretary's credit card with $45,000 of expenses.

The then Minister of Energy, Dwight Duncan, (now Minister of Finance) wouldn't reveal the exact amount Parkinson was paid to walk away, but Parkinson was Ontario's highest paid public employee, earning $1.6 million in salary and bonuses last year. His severance package could have been worth as much as $3 million.

So, if you want to know why hydro bills went up an average of $4.00 per month, take a long hard look at the above.

Gerry Burnie

PS. Has anyone any idea how much money has been collected through the "debt retirement charge?"

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And while we're on the topic of Debt Retirement Charge...

Anyone know what "defeased" means? In the Ontario Electricity Financial Corporation's statement it reads: “The Electricity Act, 1998, provides for the Debt Retirement Charge (DRC) to be paid by consumers until the stranded debt is defeased.” see: http://www.oefc.on.ca/debtmanage.html. However, I've checked two dictionaries, i.e. Webster's and Oxford, and I can't find it.