Thoughts and Opinions On Today's Important Issues

Friday, August 10, 2007

Watermain-Gate: What The Inquiry Must Uncover




Let us get to it right away. It is more than where did the levy money go or did 1,000 WUC customers get freebie water.

We have a serious political crisis in Windsor that could require that Eddie Francis resign as Mayor, and perhaps several Councillors as well, if it is proven that there was a diversion of funds at the WUC and that they knew about it or ought to have known about it at the time Eddie made his whiteboard presentation at Council.

The May, 2007 memo of the WUC Finance Director, Victoria Zuber, in which she stated "This levy was intended to be used for capital, but has been required to fund operations" is a damaging piece of evidence.

I have been very surprised that the Chair of the WUC, Councillor Lewenza, has allowed the Mayor to do most of the talking for the Commission. Isn't that the Chair's job?

I have been very surprised that the "outside" Commissioners on the WUC, the majority of five, have been invisible since this issue has broken.

I have been very surprised that the City's Audit Committee has said nothing.

I have been very surprised that KPMG has not been asked to comment.

I am not suprised at the outrage shown by Windsorites. That anger is clear from the radio, newspaper, internet forums and comments on BLOGsites and is only matched by what happened in Februray, 2003 when Council supposedly flipflopped on DRTP North.

I am not suprised how quickly the story spread. This is still relatively small town where news travels fast.

I am not suprised that people from all walks of life have seen through what is going on. We have all been underestimated.

All of this talk about audits and auditor generals and judical inquiries should not confuse us as to what must happen. We need to know the truth. What form the investigation takes does not matter as long as nothing is kept from us.

As far as I am concerned, when this matter is "discussed" at Council on Monday, Mayor Francis and Councillors Lewenza, Marra, Jones and Brister must have abolutely no role whatsoever.

In effect, what will be done at Council is to determine the Terms of Reference of the Inquiry. They are involved since they were all on the WUC at the relevant times period. Accordingly, they cannot have a role in setting what the terms of the investigation can be nor should they be allowed to even comment on this matter.

Whatever it's called, here is what must be included as a minimum as part of the Terms of Reference:
  1. What are the facts involving the watermains and costs of replacement

  2. What are the costs of replacement or repair since they have escalated to over a half a billion dollars

  3. Were numbers picked "out of the air" by the previous WUC Administration or did they exercise sound judgment in what they were doing

  4. Why were rates kept as low they were and not increased to cover capital and operating costs

  5. Why was debt paid off at a time when watermains needed replacement

  6. What role did "politics play in the decision-making

  7. Was water levy money diverted from the capital account to the operating account in violation of the Commissioners' express directions

  8. What is the true financial position of WUC today

  9. Did KPMG spot the diversion and what did they do about it

  10. Do the WUC Financials have to be restated

  11. The Investigator must name names and tell us who should be praised and who ought to be condemned

  12. What are the facts about the 1,000 or more customers who have not been charged for their water and what steps have been made to collect funds, in particular, how did this happen and how was the loss discovered

  13. Has there been an attempt made to "cover-up" this matter and to attempt to fool citizens. If so, who was involved

  14. Did the WUC Commissioners carry out their function in a proper fashion both with respect to oversight of the WUC and with respect to the issues now causing such concern in the City

There is an easier way out of this although it will be very embarrassing. If in fact there were mistakes made, then our politicians should admit them NOW and not force the City through weeks of agony and disruption due to an investigation or a Provincial Auditor General Inquiry. Never mind the costs involved to taxpayers.

They must admit NOW that the Zuber memo is correct, was received and that it was probably forgotten about because of what happened. People are forgiving since we have all made errors even bad errors in judgment.

If, however, we are forced through an investigation to learn the truth and find out that there was a diversion that was or should have been known about, then the politicians involved must pay the ultimate penalty and resign! They have no other choice.