Press Releases

June 14, 2010

WRHA Welcomes Release of OAG Report: "Winnipeg Regional Health Authority - Administration of the Value-Added Policy"

"There was no indication that there was ever any 'cash' in 'brown envelopes'" - OAG Report on WRHA Value-Adds

The Winnipeg Regional Health Authority today welcomed the release of the Office of the Auditor General's Report on the WRHA's Administration of the Value Added policy which found "no evidence that anyone benefitted personally from Value-Adds."

The report also says:

  • "There was no indication that there was ever any 'cash' in 'brown envelopes'";

  • That all such funding "was cash in the form of cheques payable to the WRHA";

  • That the "WRHA properly recorded these amounts"; and

  • That for the contracts that had Value-Adds attached, the auditor's review "determined that the contract was awarded to the highest scoring bidder in each case."

The WRHA hasn't accepted Value-Adds from any bids submitted after April 7, 2007, after it informed potential vendors it would no longer accept those directed to a specific site / program / or facility by the vendor because of the possibility of that influencing program decisions. At the time both the region's Senior Management and Board of Directors recognized that decision would drastically reduce and even eliminate any Value-Adds.

The region's Senior Management last month recommended to its Board of Directors that it delete the Value-Adds policy and amend its Purchasing policy to reflect the current reality - that the region does not accept Value-Adds. The Board accepted that recommendation at its May 25th meeting.

Arlene Wilgosh, WRHA President & CEO called the OAG's report thorough and thoughtful. She said the region has accepted all its findings and will be taking steps to address all recommendations. The WRHA's comments are included in the OAG Report.

"I would like to thank the Auditor and her staff for their hard work and helpful recommendations. I believe they will further strengthen our policies and processes around the tendering process," Ms. Wilgosh said.

Dr. Brian Postl, former WRHA President & CEO called the report a vindication of the integrity of both the staff and the region's processes.

"It was very upsetting for staff and board members to have their reputations called into question in such a public way and based on no evidence. I hope it is gratifying to them to have this issue put to rest publicly as well."

Download the WRHA - Administration of the Value-Added Policy Report

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