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Unusable masks, catered meals, redone renos: B.C well being minister orders overview of PHSA spending | CBC Information

British Columbia’s well being minister has ordered a right away overview of alleged misspending by the Provincial Well being Companies Authority (PHSA) throughout the COVID-19 disaster.

The order comes after CBC Information introduced ahead considerations raised by a number of sources with intimate data of operations inside the PHSA, which is charged with making certain entry to a provincial community of health-care providers.

The whistleblowers accuse B.C.’s central well being authority of squandering $7 million on the acquisition of unusable face masks from China; lots of of 1000’s of {dollars} on unneeded renovations to its govt places of work; and tens of 1000’s of {dollars} on high-end catered meals for executives and their workers.

Insiders say the prices have been racked up, regardless of Ministry of Well being orders to finish discretionary spending and direct each greenback to front-line employees preventing the pandemic.

“I used to be shocked and felt it was merely unconscionable,” stated one supply.

CBC Information has agreed to guard the informants’ identities as a result of they concern skilled repercussions.

“As a taxpayer, it makes me sick. It is wasteful,” stated a second insider.

Well being Minister Adrian Dix moved shortly after being proven their considerations.

“I recognize these allegations being raised to me,” Dix stated in a press release to CBC Information. “I’ve directed the deputy minister of well being to evaluate PHSA’s selections and conduct … and supply recommendation and suggestions to me.” 

New president, new spending

The whistleblowers declare the misspending began shortly after Feb. 3, when the PHSA board employed a brand new president and CEO from Montreal, Benoit Morin.

Morin is paid $352,000 a yr, and his lodging and a automotive are offered — a part of his relocation package deal.

Benoit Morin, president and CEO of the PHSA, earns $352,000 a yr, and his lodging and a automotive are offered, a part of his relocation package deal from Montreal. (Sarah Leavitt/CBC)

Each the PHSA and Morin declined to be interviewed, stating the minister has responded on their behalf.

Dix’s written announcement of a overview contains the well being authority’s submitted response to him — confirming some allegations whereas denying others.

The well being minister indicated the PHSA’s solutions can be scrutinized.

$7M value of masks deemed unusable

The most expensive mistake by the PHSA was the acquisition of unusable face masks within the early days of the COVID-19 pandemic.

The well being authority, in its response to Dix, confirms that Morin personally sought a provider in his residence province of Quebec “early within the pandemic.”

Of $11.5 million paid to the provider, nearly $7 million value of masks introduced in from China have been deemed “problematic” and unusable within the well being sector.

Sources stated many have been KN95 masks (Chinese language normal) as an alternative of N95 (North American normal) and failed match assessments, whereas different masks have been deemed to be counterfeit.

A photograph distributed by the U.S. Facilities for Illness Management exhibits an instance of a counterfeit masks that was bought all over the world. Comparable masks have been bought by the PHSA. (Facilities for Illness Management)

The PHSA admits it will definitely wrote off $6.7 million of the fee on the finish of March however stated nothing of potential further losses carried into this fiscal yr.

Insiders stated the error was stored from the general public.

By comparability, the federal authorities admitted it had bought unusable face masks by means of a Montreal provider again in Could. It publicly vowed it will not pay for the shipments.

It isn’t recognized if B.C. used the identical Montreal-based intermediary.

The PHSA stated it determined to not pursue court docket motion in opposition to the provider as a result of “the fee … would have outweighed any potential return.”

The well being authority stated that because the face masks fiasco, the Ministry of Well being has toughened ordering procedures, “making certain due diligence is undertaken earlier than a closing buy is made.”

Redone renos to govt places of work

Sources additionally criticize renovations that have been torn up to accommodate extra renos.

After greater than $17 million had already been spent on renovations to the well being authority’s new Vancouver headquarters at 1333 West Broadway, the PHSA admits that adjustments have been ordered to the 14th flooring.

PHSA insiders allege Morin wished his workplace moved to the northwest nook of the constructing to provide him this view from the 14th flooring, proven earlier this month. However the PHSA disputes this and says the brand new workplace is ‘smaller and incorporates a beforehand present assembly room, enabling extra privateness.’ (Eric Rankin/CBC)

It says the full price of the “re-renovations,” that are ongoing, is nearly $400,000, together with almost $60,000 on “expertise upgrades.”

Whistleblowers allege that the adjustments have been made to provide Morin a greater view of downtown Vancouver and the North Shore mountains.

However the PHSA “refutes that the CEO’s workplace was moved to enhance the view. The brand new CEO workplace is smaller and incorporates a beforehand present assembly room, enabling extra privateness.”

It additionally says the renovations created further workplace house, Zoom-enabled services and a reception space to “enhance safety on the ground.”

Critics say that is spin — and regardless of the causes, the cash might have been a lot better spent.

“On the top of a pandemic, spending $400,000 on a re-reno versus placing that cash towards … MRI or CT scanners or ventilators, it is simply inexcusable,” one whistleblower stated.

The PHSA stated the cash got here out of its inside capital finances.

Development materials sits stacked outdoors the chief places of work of the PHSA. (Eric Rankin/CBC)

Catered avocado toast and steak nicoise salads

Insiders additionally take concern with catered meals offered at PHSA headquarters, properly previous the onset of the COVID-19 pandemic.

Employees say they noticed breakfast and lunch being introduced in for a complete of 18 executives and their assistants just about each workday till about Could. This was decreased to simply lunches that continued into June, even after native eating places reopened.

The PHSA confirmed the numbers and dates.

Breakfasts reportedly included avocado toast with lemon ricotta berry crêpes. Lunches featured steak and salmon nicoise salads and glowing water.

The Provincial Well being Companies Authority occupies a lot of the flooring at 1333 West Broadway in Vancouver. Employees say they noticed breakfast and lunch being introduced in for a complete of 18 executives and their assistants just about each workday till about Could. (Eric Rankin/CBC)

Sources estimate the full price to taxpayers was between $30,000 and $40,000. On the similar time, many front-line health-care employees have been placing in 12-hour days, typically with out sufficient meal breaks.

“What bothered me essentially the most was seeing the individuals paid the least struggling essentially the most,” one supply stated. “And the individuals paid essentially the most received essentially the most.”

The PHSA insists its executives have been working across the clock, holding conferences in any respect hours, and have been making an attempt to maintain “their bubbles small.”

Insiders insist that solely occurred within the early weeks of the pandemic.

Dix, B.C.’s well being minister, stated one side of his overview can be to “assess the insurance policies, steerage and spending directives … [for] catered meals.” 

‘Value-effective’ targets at odds with alleged spending

With a $3.7 billion annual finances, the PHSA co-ordinates providers with B.C.’s regional well being authorities, units provincewide well being requirements and runs the B.C. Ambulance Service, amongst different tasks.

Its web site states that it is “pushed to … be cost-effective.”

However insiders stated key senior executives who as soon as oversaw spending on the well being authority now not have their jobs.

After allegations about misspending on the well being authority have been introduced ahead to B.C. Well being Minister Adrian Dix, proven in Could, he directed his deputy minister ‘to evaluate PHSA’s selections and conduct … and supply recommendation and suggestions to me.’ (Mike McArthur/CBC)

They embody the chief inside auditor, the chief monetary officer and the chief vice-president of economic providers and procurement.

As well as, the PHSA’s veteran chief working officer has revealed he is retiring.

Sources say all 4 executives had raised considerations about spending previous to their departures being introduced.

“Nobody will communicate up internally anymore,” one insider stated. “We have all seen what’s occurred to a few of our most revered leaders who’ve already tried.”

The well being authority says its board employed a brand new CEO to guide organizational change — and the ensuing adjustments to the senior management workforce have been supported by the PHSA board.

Whistleblowers need extra in depth probe

Whereas the whistleblowers who spoke to CBC Information welcome the overview of spending ordered by B.C’s well being minister, they need a deeper investigation.

“The ministry wants to analyze how one thing like this might have occurred and why various warning alerts have been missed or ignored,” one supply stated.

Yet one more insider needs B.C.’s auditor normal to look into the spending selections.

“These are public funds, and our health-care suppliers and their sufferers must be a precedence — particularly throughout a pandemic,” the insider stated. “That is irresponsible … and it must cease.”

As for the PHSA’s justifications offered to the well being minister, one whistleblower would not mince phrases: “I believe B.C. taxpayers are good sufficient to see by means of all that — they will inform when somebody is making an attempt to place lipstick on a pig.”

CBC Vancouver’s Influence Group investigates and experiences on tales that affect individuals of their local people and strives to carry people, establishments and organizations to account. You probably have a narrative for us, e mail affect@cbc.ca.



  1. I think it’s important to note that at BC Cancer in particular have several full time
    lines for nurses and unit clerks that have remained unfulfilled for several months while the rest of the staff continue to be burnt out. Where does this money go when they don’t hire the staff for lines that haven’t been filled?
    Also BC cancer spend thousands and thousands of dollars on re-branding… why would a cancer centre need a new logo ?
    Also staff have not allowed to except free catered meals donated by restaurants throughout the Vancouver.

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