Ornge took out life insurance policies on Mazza
March 7, 2013, Toronto - Ornge says there were two life insurance policies taken out on disgraced former CEO Chris Mazza.
March 7, 2013 By The Canadian Press
The publicly funded air ambulance services says former executives at
Ornge obtained $10-million in life insurance coverage for Mazza in
2010, which was meant to cover him as key personnel.
spokesman Jason MacDonald said there was also a long-term life insurance
policy providing $1.5 million in coverage for Mazza that was taken out
He says Ornge paid about $28,000 for the $10-million
policy and $10,325 for the $1.5-million policy, both of which are no
longer in effect.
MacDonald says the beneficiaries of both policies were Ornge entities and not Mazza or his estate.
tabled with a legislative committee that's looking into misspending at
Ornge showed that Mazza received $1.2 million in loans in a single year,
in addition to his high salary.
Ornge released the information a day after the Progressive Conservatives questioned the $10-million policy, saying the money
put aside to pay the annual premiums might be recovered.
Frank Klees said the policy was under the control of one of Ornge's
for-profit companies, along with $450,000 meant to pay the premiums.
If the money is still there, the government should go after it, he said.
Minister Deb Matthews has said she's asked Ornge to do whatever they
can to recover any "inappropriate expenditures,'' but
she's not sure if the insurance policy qualified as inappropriate.
Auditor general Jim McCarter found that Ornge received $730 million from the Health Ministry over five years – and borrowed $300
million more – with virtually no government oversight.
Ornge is currently under a criminal probe for financial irregularities.