St. Amant Centre to take over Hydra House

The Manitoba government has moved further to sever ties with the troubled Hydra House social agency.

The province has announced the St. Amant Centre will take over 14 homes run by Hydra House, which cares for about 80 people with severe mental and physical disabilities.

In July 2004, the provincial auditor said Hydra House executives had spent more than $1.4 million on bonuses for executives, trips to Florida, expensive cars and other items.

• FROM JULY 6, 2004: Hydra House misused public funds: auditor general

The terms of the handover are just as controversial: the province will spend about $3 million buying buildings, furniture, computers and supplies from Hydra House; Hydra House will then repay the government about $800,000.

In the legislature on Thursday, Family Service Minister Christine Melnick says this was the best option for taxpayers and the agency's clients.

"The buying or building of homes would have taken at least one to two years, would have meant that we would have had to continue to deal with Hydra House, and would have inevitably cost more than the current settlement," she said.

"The legal process was uncertain at best. Hydra House would have been insolvent at the end of it, and we would have seen no cost recovery. This is what we did. It took nine months to get here, but we are now moving forward with an institution of high repute, an institution of proven quality of care for these individuals."

Melnick says the decision was made after considering the advice of lawyers, engineers, housing appraisers and architects.

Only one resident will have to move under the deal.

Links related to this story:

OFFICE OF THE AUDITOR GENERAL: Read the report (PDF file)

ST. AMANT CENTRE: More on programs run by St. Amant Centre

HYDRA HOUSE: More on programs run by Hydra House