BC's Own eHealth Scandal Erupts
Search warrant targets tech contractor, health officials. NDP demands independent probe.
eHealth 'shown to be a fiasco': NDP's Adrian Dix
An RCMP search warrant provides details of an investigation into alleged fraud and breach of trust by British Columbia government health officials and a contractor.
Health Minister Kevin Falcon says the allegations are about a handful of people who may have acted improperly. New Democratic Party health critic Adrian Dix says the warrant speaks to widespread problems with the province's multi-million dollar eHealth project.
The warrant details six offences involving one or more of former assistant deputy health minister Ron Danderfer, former Fraser Health Authority network services manager Jim Taylor and doctor Jonathan Burns. The allegations relate to business Burns did with each of the Fraser Health Authority and the provincial health ministry.
Burns directed a company called WebMed Technology Inc., the warrant said, which made a product called Pixalere, "a computerized system to assist home care nurses in assessing wounds."
"During the time that WebMed was doing business with Fraser health, WebMed fraudulently submitted 30 invoices totalling $251,348.40 that Jim Taylor fraudulently authorized," the warrant said.
At the same time, Burns found a job for Taylor's wife Janice, it said. "Jonathan Burns conferred a benefit to Jim Taylor by hiring Taylor's wife, Janice Taylor, and Jim Taylor thereby indirectly received that benefit."
Burns also gave Taylor and his family the use of his condominium in Kelowna, the warrant said.
Ministry consultant
Aside from his business with Fraser Health, Burns was a paid consultant to the provincial health ministry.
Danderfer was responsible for authorizing health ministry payments to Burns, the warrant said. At the same time, Burns hired Danderfer's wife Joan Danderfer and his daughter Kim Danderfer, it said. Burns also gave Danderfer two four-night stays at Burns' Kelowna condominium and offered to pay for a side trip to Egypt while he and Danderfer were on government business in Europe, and Danderfer declined.
Later, Burns offered and paid for a trip to Paris while he and Danderfer were on government business to Europe, it said. Burns offered Danderfer "post-retirement income."
"Danderfer arbitrarily increased the hourly rate paid to Burns, first from $100 per hour to $150 per hour, then from $150 per hour to $195 per hour," the warrant said.
Danderfer also "counselled" Burns to increase his invoices, it said. "Danderfer participated in allowing exceptionally large invoices from Burns by removing the contract administrator and authorizing Burns' invoices himself."
It also said, "Burns double-billed for his services with the Provincial Health Services Authority at the same time as he was billing the Ministry of Health, and he did this with the knowledge of Ron Danderfer."
HIRED IN SPITE OF FRAUD CONVICTION
When the former Fraser Valley Health Region hired Jim Taylor in 2000 he had recently pled guilty to fraud and was under house arrest, the RCMP's search warrant said. "On March 1, 2000, following a guilty plea, Taylor was sentenced to two years less a day imprisonment for defrauding the White Rock Sea Festival Society," it said. "He was ordered to make restitution of $40,591.85, was placed under 'house arrest'... and was ordered to not have signing authority on any accounts other than his own personal or business accounts." Just 30 days later, on March 31, a Fraser Valley Health Region official, Neil Currie, sent Taylor a letter offering him a one-year job starting April 3.
Media sparked investigation
The 99-page warrant, sworn in Surrey on Feb. 6 by RCMP commercial crimes officer John Taylor, became public yesterday. It notes the RCMP launched its investigation after stories about Danderfer and Burns appeared in the Victoria Times-Colonist and the Vancouver Sun in 2007. Those stories followed a CTV report.
The NDP's Dix asked during question period Oct. 7 how Burns came to be paid by both the health ministry and PHSA while also billing the medical services plan as a doctor. Health minister Kevin Falcon called the questions "wild allegations."
"How many hours of a day are there, and who's managing contracts at the ministry of health?" asked Dix. "Kevin Falcon may think that's normal, to have the same guy paid four ways by the same ministry, but I don't think that's normal."
Working for both PHSA and the health ministry is a clear conflict, said Dix. "He's essentially lobbying himself."
Falcon later said he hadn't realized what Dix was asking about until he spoke with his staff. "It didn't click to me he was talking about the Ron Danderfer case," he said.
There were alleged irregularities and serious allegations, he said. The government froze the contracts in 2007 and Danderfer is no longer with the government, he said. "I hope the special prosecutor will do, as I'm sure he will, a full investigation and lay charges if charges are warranted."
'Bag full of trouble': Falcon
Today, following an announcement that he's raising the rates for most seniors in residential care, Falcon answered more questions about the case.
Stressing that nothing is yet proven in court and no charges have yet been laid, Falcon said, "In this case it would appear that there were a handful of people that the allegations suggest were involved in some very nefarious behaviour that is totally unacceptable."
The ministry has had the comptroller general review the procurement process and the eHealth program, he said. That review is continuing and the results will be publicly released when it is done, he said.
B.C.'s auditor general, John Doyle, is also reviewing the eHealth program, as are auditors general across the country, he said.
"As long as I've been in government, my biggest concern has always been technology investments," Falcon said. "That's the area that can always get large organizations, both in the private sector and government in a bag full of trouble if they're not very, very careful."
eHealth tainted?
Ontario has had an ongoing scandal around its eHealth program, which this week resulted in that province's health minister resigning. B.C.'s troubles won't help the reputation of eHealth programs, Falcon said. "It's a possibility it could taint it right across the country. I don't think there's any question about that."
Dix said an independent enquiry is needed. "I believe there has to be a full investigation," he said. "This information demands action. It demands an independent inquiry and simply put, the government can't be trusted."
Burns and Danderfer were two of the most senior people working on eHealth, said Dix. "It's shown to be a fiasco," he said. "There was a lack of control, a lack of interest in the issue, inappropriate controls on expenditures. I think it raises serious questions on the whole eHealth project to the government."
He noted that the eHealth project was a major push for the health ministry. "This represents a failure on the part of this government to exercise administrative control on one of its top priorities," he said. "The government seems to hear the word 'computer' and give up any effort of making sure the right public policy decisions are made." ![]()




27
Login or register to post comments
doggone
2 years ago
Double trouble
I was on the good ship "Free State Health" when she went down - simply stopped paying her bills 'cause she was out of cash (Check out 1998)
A certain amount of the lack of cash was due to an "upgrade" of the high teck computer links within the health system there. I know because I helped install fibre optic cables in an hospital where the hot water reticulation piping blew leaks at least once a week and the backup generator would faithfully start but the switchgear would not put the backup on line so patients died.
Did any of these latest highly paid "experts" come from R.S.A.?
crankypants
2 years ago
Attention
Calling all PAB employees. We must find a way to tie this fiasco to the Fast Cats, or Bingogate, or anything else that will deflect our ineptitude. How many more screw-ups must we endure before the BC Liberal Party admits that they are the most inept government ever to surface on the planet?
dorothy
2 years ago
You are not seeing what passes here (it could be 'El Condor')
"...the most inept government ever to surface on the planet?"
No, no, they're not inept. They're doing politics. Throw someone to the lions once in a while, and thereby convince us dupes that the rest of the edifice is clean as a whistle. Are you convinced?
kl
2 years ago
As dorothy says...
This Government is not inept. In fact they are rather adroit at what they do. And what they do is use the system for their friend's and their own personal gain. BC has become a banana republic wherein those in power act as though they are above the law.
In my opinion it's time to clear house in Victoria. With 3.5 years left to the next election how this can be achieved is unknown to me. Yet if we let his kind of behavior fester things will only get worse in the long run.
DPL
2 years ago
The Vitoria newspaper has a
The Vitoria newspaper has a front page article today( friday) It seems the provicne is still paying the health firm under cloud. Burns and his company are making 400,000 working with four regional health care outfits.
Falcon was telling the house a couple of days ago that Adrian was wrong as usual. Seems Falcon was full of BS which is pretty normal for him. Adrian was asking some pretty sharp questions. Hope all the folks who voted Liberal are pleased with the results, because the rest of us, sure arn't.
Hermans Hermit
2 years ago
Corrupt Lieberals - Corrupt NDP
And get this - Jim Taylor was hired as director of communications systems by the Health Ministry to oversee $9 million in contracts — a month after he was sentenced to two years less a day for FRAUD!
And he was HIRED BY THE NDP!
[UNVERIFIED ACCUSATION REMOVED. -MODERATOR.]
Pathetic!
British Columbians will definitely seek vengeance against both the corrupt Lieberals and corrupt NDP at the ballot box in 2013.
Viva La BC Visionistas!
SicPreFix
2 years ago
Hermans Hermits
"British Columbians will definitely seek vengeance against both the corrupt Lieberals and corrupt NDP at the ballot box in 2013."
Nah. Never happen. We're zombified media sheep.
BC Mary
2 years ago
Say that again, please?
It doesn't matter to me, which party the perps belong to ... would HH kindly elaborate on his (if you ask me) libelous accusations?
Somebody (who, please?) hired Jim Taylor "a month after he was sentenced ..." Somebody, like who?
And Adrian Dix, you say, prepared a fraudulent memo?
I can't understand how your comment got past The Tyee's moderator.
.
Hermans Hermit
2 years ago
Corrupt History Redux
Jim Taylor, a convicted fraudster, was hired by the Fraser Health Authority while he was still under house arrest in April 2000 to manage $9 million in contracts. Imagine that!
http://www.vancouversun.com/entertainment/Fraser+Health+Authority+hired+prohibited+from+handling+other+people+money/2083689/story.html
The FHA was littered with NDP hacks at the time including its CEO Pat Zanon in 2000. In fact, Zanon ran for the NDP in Surrey-Tynehead in this year's election.
http://www.cbc.ca/canada/bcvotes2009/ridings/066/
Adrian Dix was a key player in “Casinogate” [COMMENT REMOVED FOR LEGAL CONCERNS. -MODERATOR.]:
"Then there's the whole matter of the Adrian Dix memo allegedly written in July of 1998 ostensibly written by Dix as a "memo to file" indicating the premier instructed him of his friendship with Pilarinos saying he was to have nothing to do with the casino application."
"The memo magically came to light the day after the Mounties searched the Clark abode. A few days later the RCMP searched the premier's office, specifically Dix's computer."
"Anyone want to make a bet on what they were looking for? Considering Dix was fired two days later, anyone want to take a bet on what the Mounties discovered?"
"Dix took a bullet for the boss. At least he got some $70,000 of taxpayer dollars for his trouble."
http://primetimecrime.com/columns/Columns%201999/19990825.htm
[ALLEGATION PRESENTED AS FACT REMOVED. -MODERATOR.]
http://willcocks.blogspot.com/2004_12_05_archive.html
The Lieberals - One corrupt bunch
The NDP - Just another corrupt bunch
Viva La BC Visionistas!
sdgreen
2 years ago
Corruption at the highest level
and the Executive Financial Officer along with the Senior Financial Officer stood by and did nothing.
Clearly, wealth is to be had if you are part of the Senior ranks of the Ministry of Health. No wonder the real health workers are cash strapped.
I think both the NDP and the Liberals wear this one, and Adrien Dix calls for a public enquiry. I say we call for a major Police and Judicial investigation and charge all who either were involved or failed in their duty.
This a mess!
RC
2 years ago
Minister Falcon Says
"Health Minister Kevin Falcon says the allegations are about a handful of people who may have acted improperly"
"Falcon later said he hadn't realized what Dix was asking about until he spoke with his staff."
"There were alleged irregularities and serious allegations, he said.'
"Stressing that nothing is yet proven in court and no charges have yet been laid, Falcon said, "In this case it would appear that there were a handful of people that the allegations suggest were involved in some very nefarious behavior that is totally unacceptable."
"As long as I've been in government, my biggest concern has always been technology investments," Falcon said. "That's the area that can always get large organizations, both in the private sector and government in a bag full of trouble if they're not very, very careful."
The Ministerial credo "Hear no evil, See no Evil, Speak Plausible Deniability"
In case it has escaped anyone's attention the buck ($ yes it was a pun) stops at the ministerial level. As Kevin Falcon is the Health Minister he is the leader, the grand Pulbah, the buck stops at him. The Enron debacle for all its negative impact did result in one positive outcome, simply put, ignorance of the activities of those you lead is no defense. Minister Falcon, man up. be a leader, accept responsibility of your position. The government has, in theory, one of the best procurement systems in the free world. This could not happen if the governments contract and procurement policies and procedures were followed. The only way they were not followed would have to be due to high level interference. The Comptroller General should not have to tell you this. After all did you not come from the highways Ministry. A Ministry that deals with very large contracts. Hmm Maybe another rock to be overturned!!
North of Hope
2 years ago
PABLUM
Herman's Hermit messages are beginning to sound like they are from someone in the Political Affairs Bureau. They seem to be PABLUM (Political Affairs Bureau Language Used for Media.) He continually attacks the NDP for every fault of the BC Liberals.
Please remember Clarke was not found guilty of any crime and how did the press know about the raid and then show up with TV cameras.
Hermans Hermit
2 years ago
PABLUM
'North of Hope' sounds like just another typical NDP hack defending the indefensible.
NDP hacks defend NDP corruption and Lieberal hacks defend Lieberal corruption. Have you no shame?
No wonder the political vacuum is opening up for Vision BC. Both the Lieberals and NDP will likely be crushed in 2013. You can bank on that.
Viva la BC Visionistas!
DPL
2 years ago
It took awhile but Glen
It took awhile but Glen Clarkes deck finally made it on this comment list. The Liberal Socred PR team are working overtime to shift blame to the critic not to where it belongs. The MiInistry ran for so long by binder boy who now sits beside Falcon and tells him what to say. Some people will do just about anything for money and a fancy title.
crh
2 years ago
Gordo's direct hotline
to the PAB basement has been really busy these days. Screw-up's all over the place. Wonder if those PAB rats are working overtime this weekend?
verso
2 years ago
Vision
"Both the Lieberals and NDP will likely be crushed in 2013. You can bank on that."
This is why no one takes you seriously. In order for your beloved Vision party to be a spoiler it has to exist. Wishing it so isn't going to make it happen.
The NDP, like all governing parties before and after them, made mistakes. The same way Vision Vancouver has made mistakes. Or are you so partisan to believe they've been perfect?
So enjoy your Vision kool-aide, those of us grounded in reality will work with our chosen parties (the ones that actually exist) to help get them elected. Those of us who abhor corruption will try to make honest parties of them (I'm clearly delusional, too). That's not to say the next government elect will be perfect but then only a fool would expect so.
BC Mary
2 years ago
R.C., about Minister Falcon
You'd be interested in the big story on Peter Kiewit & Sons, the Sea-to-Sky Highway, the Port Mann Bridge ... at:
http://lailayuile.wordpress.com/2009/10/09/laila-yuile-says-time-to-start-those-tolls-on-the-sea-to-sky-highway/
Minister Falcon might be having an uncomfortable long weekend contemplating how he got out of Transportation and into Health. How lucky can a guy be?
SharingIsGood
2 years ago
North of Hope
Understanding that the Campbell government considers anyone east or north of the Fraser Valley is to be considered beyond Hope; I rather like the fact that you don't label yourself as such. I am rather sad that the Premier's minions seem to be giving one-way bus tickets to DTES people wishing to check out our small communities. It has been dreadful watching our crime go up and our already reduced (sometimes removed altogether) resources for helping these folks being stretched beyond hope.
That Herman's Hermit poster seems to maintain the same cadence, formatting and writing style of the infamous Luke. The HH poster seems to have Luke's twist for just about anything. I would think that the BC Libs would promote a party like Vision for those that are not particularly loyal to party lines (left or right); yep, they may even be able to split the anti-BC Liberal vote and sneak up through the middle. I wonder why HH chose this handle? Could this moniker have special meaning?
ladze
2 years ago
this article is only the tip of the iceberg
"...what they do is use the system for their friend's and their own personal gain. BC has become a banana republic wherein those in power act as though they are above the law".
I have witnessed firsthand the damage being wrought in health and social systems by a seemingly endless succession of consultants hired to implement restructuring, and it seemed as though no one was watching and keeping things checked and balanced. I have witnessed valuable program budgets being eaten up by these consultants. Consultants that never tell us anything we do not already know. Not long after they arrive, though, workloads quadruple and valuable services and programs disappear. Now it is clear that it has been going on as far up as it goes in our government. We are being taken to the cleaners and services for vulnerable populations are being decimated. This article is only the tip of the iceberg. Go deeper folks, go deeper.
doggone
2 years ago
Ladze: you are saying similar things
My wife works for VIHA (Or VI Ha Ha as she calls it)
So I hear daily reports of how well restructuring is going:"&%****##@!" sort of thing. Restructuring has been going on for a long time. In the early '90s I got to overnight (on my way to aid work in west africa) in a fairly nice hotel in Vanc 'cause she was attending some seminar about how the "System" (read health care) would play out in the next few decades. Naturally enough whatever she was told at the seminar did not happen (maybe some of it did who cares?) Later in life we both went off to R.S.A. and worked for Free State Health for a couple of years - strange experience but a good prompt for what we are watching here today. We saw the whites from Bloemfotain show up in our (adopted) black homeland hospital and drop off directives and hop back in their S.U.V.s
But I digress: what I really wanted to call attention to was:
http://earthquakescanada.nrcan.gc.ca/stndon/wf-fo/index-eng.php?day=11&filter=autoscaled&month=10&station=first&tpl_region=swbc&type=network&year=2009&hour=9#SECTION_1
Episodic tremor and slip is back with bells on and we will soon be hearing about it on CBC
morechatter
2 years ago
A Little Help From My Friends
Harper sings a tune which rings true of both the Liberals and Conservatives when it comes to fraud and corruption. And surprised I say not as my only question would be if the Mounties had the cash to investigate all these guys and their questionable undertakings which ones would come up fraud free. Come now we have watched the premier sleeze throught lowering the standards while making fraud, corruption an everyday norm and I'm thinking the numbers are small indeed but what do you expect from a government who sets itself above the law along with a few close friends with their eye on the prize as there is nothing worry about as the laws only apply to everyone else.
morechatter
2 years ago
Herman says the NDP done it?
And Herman we know how well that worked for the NDP as it seems like only yesterday Premier Campbell promised British Columbians an open and transparent government, an accountable government just before he started to pull the wool over the public's eyes while making BC a playground for corruption.
And we all know what happened to the NDP for its part in public deception as the party looked for a new leader to soften their image. If thats an indicator of things to come the Liberals will be wiped off the map with the party that makes fraud a corruption a household word as school age children are left holding the baggage that is or better yet the debt while classrooms are cut down to size.
Terrys_Hot
2 years ago
Corruption
Now if this were the NDP Gordo would be howlering for a re-election but it is Gordo and he seems too think he can do No wrong. What we need is a general strike and bring the Provincial Government to there knees it has happened before in British Columbia, but then the people all stood together in SOLIDARITY. Know people are afraid too stand together in anything for fear of losing there jobs. But the Liberals need a boot out of public office.
mary jane
2 years ago
Adrian Dix
Adrian Dix would make a good James replacement. He is ready to show what is going on with Health issues. Not only that he makes a point of going around the province to see what is really happening.
Martin Campbell
2 years ago
Comment from RC
Minister Falcon, man up. be a leader, accept responsibility of your position. The government has, in theory, one of the best procurement systems in the free world. This could not happen if the governments contract and procurement policies and procedures were followed. The only way they were not followed would have to be due to high level interference. The Comptroller General should not have to tell you this.
"best procurement systems" "high level interference"? Heeheehee. That's some funny stuff right there!
I'm here to tell you it wasn't ALL high level. Not at all. More like 'high level who gives a flying leap'. Those high level people really couldn't have cared less and so long as they could show adherence to policy they were happy to let consultants do whatever the hell they wanted to. I know this for a fact.
As for the procurement system - good grief where to start? Let me give you a example. Let's say you want to hire someone to turn the soil and fertilize your garden. Okay, so you'll put an ad out with the all the details, must bring own tools, must provide such and such grade fertilizer, must clean up after themselves and conduct the work during daylight on a weekend? With me so far? Okay, now pretend you're a government employee and you really want Bob & Sue's gardening company to get the contract - so you add in 'knowledge of garden at 123 Main Street preferred' and guess what? NO OTHER CONTRACTOR has ever worked there before. Is it a necessary part of the work to be done? No. Does it add value to the quality of work done to such an extent to vastly reduce the number of replies? No. Does it cast aspersions on the quality of government contracts? You Bet.
Keep digging Dix.... Keep digging.
sicntired
2 years ago
Now it's seniors
This government has to be the archetype for corruption.To top it off whenever they need money,who do they go after.School sports programs,the arts,a tax on everything and now seniors.I won't bother to mention the way they treat the working poor and their refusal to raise the minimum wage.The fact that we consistently have the highest child poverty in the country.All this in a province with one of the highest cost of living indexes as well.B.C.The greatest place on earth.
BenZiegler
2 years ago
There are other ways to work together on e-health!
I worked for many years as a e-systems contractor in the BC Ministry of Health. While I certainly appreciated the income flow, I was less than impressed with the way business was being done. I think we, here in BC (and Canada) have much to learn from other countries who are able to accomplish so much (related to e-Governance) with so few financial resources. I summarize my recent experiences in one such country (Philippines) in this blog post '27 ways Filipinos create successful, collaborative e-governance projects' (http://www.collaborativejourneys.com/?p=1834).