In a flurry of activity, Mazza and almost all of his hand-picked executives at the non-profit ORNGE left the non-profit air ambulance service on Jan. 1 that year and began working for one of a series of personally owned consulting companies that were paid, often exorbitantly, with taxpayers’ money.
The Star has obtained a document that shows how, on the same day, a Mazza-led partnership — ORNGE Global Management Inc. — entered into an agreement to make use of many aspects of the air ambulance service that Ontarians pay $150 million a year to support.
“The partnership has been founded and organized to develop and operate businesses utilizing, among other things, intellectual property to be obtained under licence from ORNGE,” states a shareholder agreement between Mazza, personally, and ORNGE Global Management Inc.
Health ministry officials say the problem with this deal was that a taxpayer-funded asset, built with the expertise of paramedics, pilots and provincial employees, was being used for private gain. Plans for businesses included a high-end medical insurance plan for international executives.
In January 2011, Mazza was listed as the president of the Global company and sole shareholder. His trusted lieutenant, Maria Renzella, was an executive of the company. The document indicated that Mazza would eventually sell some of his shares to other parties, but no identities were given in the document, prepared by law firm Faskin Martineau.
The for-profit companies were shut down last month and Mazza and Renzella lost their jobs.
Health Minister Deb Matthews told the Star Monday that her ministry was told by ORNGE and its lawyer in a meeting later that January that they were powerless to prevent the air ambulance service from setting up for-profit companies. Besides, she said, the province was told money would flow to Ontario as a result. As the Star’s investigation has revealed, the deal called for Ontario taxpayers to receive just 3 per cent of revenues and Mazza and partners to get the lion’s share.
A 32-person forensic audit team working for the provincial finance ministry is probing to see if there has been an abuse of taxpayer’s dollars.
ORNGE and its predecessor, a provincial health ministry agency, have long been recognized as a leader in transport medicine. Paramedics and pilots, many working for small air ambulance companies, spent years developing the system with ministry officials.
In 2005, then health minister George Smitherman created ORNGE. In what has been an ongoing duel between health minister old and new, Matthews said yesterday that the root of the problem traces back to 2005.
“Really, the intellectual property was given to ORNGE in 2005,” Matthews said, referring to the expertise ORNGE has acquired.
The document the Star has recently obtained shows that the intellectual property was then shifted to Mazza and partners in 2011.
Smitherman is on record saying the service he created was excellent and he has blamed succeeding health ministers for not keeping a watchful eye on Mazza’s empire as it grew.
Original Article
Source: Star
Author: Kevin Donovan
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