Wynne angrily questions Pan Am expenses
CEO Ian Troop denies spending problem but promises policy changes
The Ontario government is demanding Pan Am Games organizers “tighten the rules” on expenses after it was revealed high-paid executives were charging the public for dubious claims.
Premier Kathleen Wynne told the legislature Monday the Liberal government was taking the matter seriously, and stressed that Tourism, Culture and Sport Minister Michael Chan is on the case.
“We’ve already taken action. The minister has already given instructions of the board to tighten the rules,” the premier said after the Toronto Sun disclosed that Pan Am chief executive Ian Troop, who made $477,000 last year, and other highpaid honchos were claiming expenses such as $1.89 for a Starbucks tea and 91 cents for parking.
Other charges were for travel, fancy dinners, laundry, hotel room service and moving expenses, according to the Sun.
“There are expenses within that report that are unacceptable,” fumed Wynne.
“Three weeks ago, the minister responsible for the Pan Am Games asked the board to review their policy (and) strengthen it where appropriate,” she said.
“The rules should be tighter. There should not be that kind of entitlement, so we’ve already taken action. We need to make sure that the dollars are spent wisely, that there’s good judgment in place, and that the rules are appropriate.”
Speaking to reporters later Mon- day, Wynne could barely contain her fury at the Pan Am executives.
“It’s ridiculous. It’s the kind of entitlement that is unacceptable,” Wynne said. “I’ve been asked about reimbursement and that’s one of the questions I will take up with the minister,” she said. “It’s absolutely appropriate for people to be outraged. . . . Having said that, I think we have to make a distinction between that kind of nickeland-diming ridiculousness and the fact that people did have to travel to Guadalajara in order to land the Games.” Multiple trips between Canada and Guadalajara, Mexico, where the previous Games were held, were also expensed by executives, according to the Sun’s investigation. Troop denied his team has a spending problem. “Absolutely not. In fact, the facts would say just the opposite,” because they are within their operating budget, he said. “We’re on schedule and we’re on track to deliver a great Games for this community,” Troop said. “We’ve got to keep that in mind at all times.” The expenses in question are within Pan Am policy, which states employees will be reimbursed for any “reasonable” business expenses. But Troop allowed that the policy could use a rethinking. “You follow your policy, but sometimes you don’t realize that common sense sometimes has to intrude.” He said the policy could be “evolved in some areas to make it more appro- priate.”
“We’ll take a look at the feedback we’ve got and — quickly — look at what we need to differently to be responsive to our taxpayers. We’re all taxpayers in this thing. . . . We will make some changes to our expense policy.”
Troop was not able to give a total amount for the spending in question, but said it comprised all expenses from winter 2010 to spring 2013.
Because his staff was following existing policy, they will not be asked to reimburse the organization for their coffee and parking expenses, he said.
Late Monday, David Peterson, newly appointed chair of the Games, issued a statement saying he has “great confidence in Ian Troop and the management team,” adding that preparations are on schedule and “under budget by more than $50 million and we continue to look for efficiencies.”