The Ford government sent nearly $ 1 billion to companies that were either ineligible for COVID-19 assistance or that lost less money than they were given, the auditor general finds

In a rush to get help from COVID-19, Prime Minister Doug Ford’s government sent nearly $ 1 billion to thousands of ineligible businesses and small businesses whose losses from the pandemic were less than the grants they received, the auditor says. General Bonnie Lysyk in her annual report. .

Lysyk found a “worrying” lack of controls that resulted in the approval of “suspicious” applications, even from companies with addresses outside of Ontario, due to a focus on speed and lack of verification.

“I understand that the government was dealing with an unprecedented crisis,” Lysyk wrote in the more than 1,300-page report released Wednesday.

“But even in a crisis, systems must be put in place to ensure that only eligible businesses receive taxpayer money and that program funds reach those who need it most.”

Ford acknowledged it was quick to help small businesses but said they were in “desperate need” amid closures and restrictions.

“Because of those grants, companies are still in business today,” he said in Mississauga, where the government announced plans to build a new Mississauga Hospital and expand the Queensway Health Center across from Sherway Gardens.

“Unfortunately, you are going to see some fraud.”

The annual report also blamed Ontario Cannabis Retail Corp. for weak controls to prevent minors from purchasing cannabis products, a lack of timely treatment for the 60 percent of Ontarians who experience heart attacks, a failure of the Commission for Ontario Securities to Collect $ 378 Million in Penalties. corporate taxes, lax oversight of private professional colleges, and Ontario Provincial Police detachments “increasingly understaffed.”

On pandemic payments, Lysyk criticized the Ford government for excluding some companies in the lodging, dry cleaning, laundry, manufacturing, transportation, logistics, wine and brewery sectors from some aid programs, while others got money that did not. They should have.

For example, $ 210 million in Ontario small business grants of $ 10,000 to $ 20,000 went to 14,500 small businesses that were not eligible, according to the criteria. The program was aimed at companies that had to close during closed shutdowns or were severely restricted and lost more than 20 percent of their revenue.

“Given the amount of money, the absence of better controls or evaluation processes is worrying,” Lysyk said, adding that the government has written off the donations as non-recoverable.

“Initially, the province relied on the information provided by the applicant without verifying whether the information was true, requesting supporting documentation or, at the very least, evaluating the reasonableness of the information provided.”

It took up to seven weeks after the program was launched to set up a system to “flag” applications from companies with addresses outside of Ontario, he noted.

The money was canceled in August and the government “made no attempt to recover funds paid to ineligible recipients.”

Another $ 6 million paid to “suspicious recipients” remains under investigation following advice from the public, financial institutions and internal reviews by ministries of finance, economic development and government services.

Because small business grants started at $ 10,000, businesses that lost less than that got a bonus, including some that lost as little as two cents or had no change in income, resulting in overpayments of $ 714 million.

“More than 51,000 recipients received more than $ 939 million in grants compared to their total reported losses of $ 225 million,” wrote Lysyk, noting that successful companies comprised 46 percent of the total that applied.

“The eligibility controls were completely missing, poorly designed or not applied.”

The Ontario Together Fund, which helped companies with up to $ 2.5 million each create products like ventilators, masks, and disinfection kits for pandemic emergency response, resulted in its share of disappointments.

A company he gave $ 1.8 million to went bankrupt, and 15 of the 54 projects that received grant assistance have been delayed, meaning their products are not yet ready to market.

Another $ 16 million was awarded in property taxes and energy cost reimbursements to businesses that weren’t eligible, though $ 850,000 has since been recovered from 229 businesses.

Lysyk’s audit makes no mention of the alleged theft of $ 11 million in pandemic aid that has led to criminal charges against two Ontario bureaucrats fired in the wake of the scandal.

While delays in the provision of personal protective equipment (PPE) such as masks, gowns and gloves were well documented at the start of the pandemic because the stocks accumulated in the wake of the 2003 SARS crisis had expired in 2017, Lysyk recorded more than 1,600 emergency health requests. care facilities such as nursing homes in February and March 2020.

“That was much more than could be filled … the Health Ministry had begun to destroy the EPP without replacing it,” their report said.

“An inadequate supply of PPE contributed to an increased risk of exposure to COVID-19 for many healthcare workers.”

The province has established a new organization called Supply Ontario to centralize and manage the procurement and distribution of PPE, but it is not expected to be “fully functional” for another two years.

“It is important that the province is prepared for unexpected events where PPE may be needed,” Lysyk said.