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Politics

NDP critic calls for new Hockey Canada audit following claims of high-flying spending

The Minister of Sport Pascale St-Onge is facing a new call for the federal government to audit Hockey Canadas finances for the past eight years over concerns about allegations of high-cost gifts and perks given to the board of directors.

NDP MP Peter Julian says source reported board members gave themselves expensive dinners, rings, hotel stays

An NDP critic is calling for an expanded audit of Hockey Canada's spending. (Jeff McIntosh/The Canadian Press)

NDP MP Peter Julian is pressing Minister of Sport Pascale St-Ongeto order a new federal audit of Hockey Canada's finances overthe past six years in response toallegations that the sports body's directors availed themselvesof high-cost hotels, dinners and jewelry.

Julian sent a letter to St-Onge on Tuesday regarding what he called "Hockey Canada's lack of accountability and transparency in managing their expenses."

Julian said a former Hockey Canada board member relayed to him insider information about the spending practices of theeight-member board of directors.

In his letter, Julian referred to board dinners that can "cost more than $5,000, presidential suites for board members that cost over $3,000 per night and gold and diamond rings for board members that cost over $3,000 each."

"As the minister who oversees Sports Canada and Hockey Canada, it is your responsibility to make sure that Hockey Canada uses government funds and hockey parents' registration fees in an accountable and transparent manner," Julian added.

A man speaks at a microphone.
NDP MP Peter Julian sits on the parliamentary committee holding public hearings on Hockey Canada's handling of sexual assault allegations. (The Canadian Press)

Hockey Canada CEO Scott Smith told a parliamentary committeein July that "the board of directors and our members from time to time have received a version of championship rings and there are some staff members who do have bonuses that relate to medal performance." He didn't disclose amounts.

Hockey Canada has been under intense public scrutiny since May over its use of a reserve fund fed in part by players'registration fees to settle a $3.5 million lawsuit alleging members of the 2018 World Junior team sexually assaulted an intoxicated woman.

The federal government froze the hockey organization's funding in June and has orderedan audit to show government funding wasn't used to settle the lawsuit.

When asked for comment by CBC News, Hockey Canada didn't refute the figures Julian quoted for hotels, dinners and rings.

The hockey organization said its board of directors is made up of volunteers who "donate their time and energy" and their expenses related to their duties including "meetings, food and travel costs" are covered by the organization.

"As volunteers, directors have received gifts, including as part of welcome packages when attending events or meetings from partners and sponsors," wrote Hockey Canada spokesperson Jeremy Knight.

When members of the board of directors visitedthe Northwest Territories in 2017, he said,they receivedtraditionalIndigenous footwear from Hockey North.

Knight said Hockey Canada issues credit cards to members of the board of directors which are connected to a "travel expense reporting system" and "are to be used strictly for pre-approved travel expenses."

Hockey Canada also confirmed Postmedia's report Tuesday that, for seven years, the organizationowned a luxury two-bedroom condo inMaple Leaf Square in downtown Toronto reserved for the use ofboard members and staff. Hockey Canada said itsold the condo unit in 2017.

"We can confirm that the unit was purchased in 2010 to alleviate costs associated with staff and directors travelling to Toronto and was subsequently sold in 2017," Knight wrote.

Knight said a third-party governance review will examine this practice to "ensure" it's " in-line" withother national sport organizations of a similar size. Hockey Canada commissioned former Supreme Court justice Thomas Cromwell to conduct the review.

Minister of Sport Pascale St-Onge. The federal government is looking over Hockey Canada's books to ensure federal money wasn't used to settle a lawsuit alleging sexual assault. (Patrick Doyle/The Canadian Press)

St-Onge's office said she already has called for a financial audit to determine whetherpublic funds were used in Hockey Canada's settlement of an alleged group sexual assault in 2018.

The completion of the audit is one ofthree conditions the federal government set for Hockey Canada to get its funding back.

Financial statements obtained by CBC News show the hockey organization received $14 million in federal government support in 2020 and 2021,including $3.4 million in emergency COVID-19 subsidies.

In fiscal 2021, the $8.3 million in federal funding Hockey Canada received represented 13 per cent of its$62 million in annual funding. Sponsors and events supplyabout 50 per cent of the organization's revenue, says Hockey Canada's website.

An external firm is also conducting a routine financial review of Hockey Canada's expenditures reported to Canadian Heritage, its governance structureand its policiesto manage harassment and abuse, St-Onge's office said. Samson & Associs is conducting that review.

A parliamentary committee isholding public hearings on Hockey Canada's handling of sexual assault allegations.

TSN reported last month that Julian planned to ask the former board member he spoke to who he said wishes to remain confidential to testify in-camera before MPs.

With files from Jonathan Gatehouse & Albert Leung