Pan/Parapan Am Games Tendering Processes and Costs

6 Mar 14       OpEd

As we’re heading into the final sixteen months before the start of the Pan/Parapan Am Games, more and more questions are being raised about costs, about tendering processes and security for the Games.

For more than two years I have raised questions in the Legislature about concerns with Games venues and budget over-runs.  During Committee hearings I discovered that the Athletes’ Village in Toronto was not included in the total Games costs the Government had provided to Ontarians.  I found this to be an astonishing omission on the part of the Government which led me to question what else was not being revealed as a real cost of the Games.

And this week I again raised questions in the Legislature about the cost of law enforcement and security for the Games.  We found out that the security costs have bloated to more than double the original estimate – from $113M to $239M – how can this have happened?  Who’s monitoring the day-to-day, let alone the major venue, accommodation and security costs?

The Government made a change to the head of the Games, hiring Minister Deb Matthews’ former Deputy Minister of Health and Long-Term Care to the position of CEO and appointing Minister Matthews’ brother-in-law, former Liberal Premier Peterson as Chair of the Board of Directors for the Games.  We have requested the new TO2015 CEO to appear before the Standing Committee on General Government to answer questions about many Games issues and hope to clarify real costs when he appears.

In the meantime my questions to the Minister of Community Safety this week about the ever-escalating costs of security were, once again, answered in a convoluted mash of verbiage.  My concern about these costs arises from the fact that they have more than doubled from the initial estimates and the private security company hasn’t yet been contracted.  The Minister’s suggestion that after making an initial assessment of the security costs, the Government then checked with Vancouver and other major sports cities about security costs, leaves me very concerned about what else was estimated without prior full investigation.

On the issue of what company is awarded the security contract, I have concerns that we could, once again, award the contract to a non-Ontarian/Canadian company.  I have been quite clear in my discussion with Pan Am officials that we must have the hiring of Ontarian/Canadian companies as a first priority for all aspects of the Games.  But, found out that the company awarded the Hamilton, Milton and York University venues contract is a French company, Bouygues Building Canada Inc. in a joint venture partnership with Kenaidan Contracting Limited a consolidated subsidiary of Obayashi Group, Japan.

I just can’t believe that wholly owned and operated Ontario/Canadian firms could not be found to bid on and legitimately win these contracts.  We need good paying jobs for Ontarians/Canadians with company earnings staying in our province/country and these Games should have been a significant opportunity to put forward that goal and to easily achieve it.