Health Minister Kevin Falcon says RCMP allegations of breach of trust involving a former top-ranking Health Ministry bureaucrat are serious and deeply concerning to the government.
Falcon said Thursday the government is co-operating fully with the RCMP investigation. The government's comptroller general, a branch of the Ministry of Finance, is also investigating the matter, he said.
The minister said the matter will also be reviewed by B.C.'s auditor general, who is participating in a Canadawide review by auditors general of government electronic health initiatives.
In a search warrant executed last February but only recently made public, RCMP allege that Ron Danderfer, B.C.'s former assistant deputy minister of health and the man who was in charge of the province's electronic health initiative, committed breach of trust.
The RCMP also claim former Fraser Health Authority manager James Roy Taylor committed fraud by allowing Abbotsford doctor Jonathan Burns to submit allegedly false invoices worth almost $250,000.
Falcon said Danderfer, Taylor and Burns no longer have financial ties to the government.
"The allegations themselves, no question, are very damaging and concerning," Falcon said in response to questions from reporters Thursday.
He said the government must do everything it can to ensure its enterprises are protected, but he said new technology poses some challenges.
"As long as I've been in government my biggest concern has always been technology investments," said Falcon. "That's the area that can always get large organizations, both in the private sector and in government, in a bag full of trouble if they are not very, very careful."
No charges have been laid in the case and the allegations contained in the 99-page search warrant have not been proven in court. A special prosecutor was appointed in April 2008 and a report is expected before Christmas.
Danderfer, Burns and Taylor could not be reached for comment. The RCMP investigation into the matter is ongoing.
Danderfer and Burns have been the subject of Opposition New Democrat questions in the legislature in connection with the awarding of contracts related to the B.C. government's electronic health program.
The RCMP search warrant dated Feb. 6 lists six unproven allegations: one of breach of trust involving Danderfer, four fraud and influence-related involving Burns and two fraud-related charges involving Taylor.
The warrant alleges that Burns was allowed to double-bill for his medical services to two branches of the Health Ministry with Danderfer's knowledge.
It also alleges that Danderfer accepted personal and family benefits from Burns that included allowing Burns to hire members of Danderfer's family.
And it alleges Danderfer counselled Burns to inflate invoices and pushed for the acceptance of a $3.75-million contract with the University of B.C. that would benefit Burns' company, WebMed, which used electronic technology to allow doctors to diagnose wounds from a distance.
It also alleges Danderfer arbitrarily increased Burns' hourly consulting rates to $195 per hour from $100 per hour.
The warrant alleges Taylor and Burns defrauded the Fraser Health Authority of $251,348.40 by allowing WebMed to fraudulently submit 30 invoices that were authorized by Taylor.
Danderfer, who worked for the B.C. government for 35 years, retired in October 2007 shortly after he and his wife, Joan, also a long-serving B.C. bureaucrat, were placed on mandatory leave. They were placed on leave after the Health Ministry said it discovered an email in the summer of 2007 asking about a $10,000 cheque written by Burns to Danderfer's wife Joan.
Former health minister George Abbott said in October 2007 Danderfer resigned under a cloud, but would not elaborate on what he called "irregularities" connected to his former top bureaucrat.
The B.C. Health Ministry conducted a review that concluded the process was fair.
Shortly afterwards the ministry acknowledged an RCMP investigation was underway involving Danderfer, but said it was not connected to the electronic health initiative.
