TORONTO

Months after the province introduced a sweeping ban on perks for government employees, Metrolinx staffers continued to receive and use free film festival and sporting event tickets, according to documents obtained by the Toronto Sun.

E-mails, letters and reports obtained under freedom-of-information legislation show that Metrolinx CEO Bruce McCuaig was alerted to Ontario’s so-called “Perquisites Directive” on April 20, 2011. But in the months that followed, McCuaig okayed a deal that saw the province’s transit agency spend $30,000 to secure a Toronto International Film Festival sponsorship.

A few months later, Metrolinx reached a sponsorship deal with Rogers Centre for the NFL “Bills in Toronto” series. Both netted agency employees access to exclusive tickets.

In August 2013, after months of attempting to obtain the documents through several freedom-of-information requests, the Sun revealed details of the sponsorship deals signed with TIFF and Rogers Centre.

The stories also showed that there was no oversight of the program, tickets were sold to staffers at cut rates or provided at no cost, and an audit was conducted to get to the bottom of the mess.

This latest disclosure appears to show that Metrolinx was in violation of the province’s perks policy in 2011.

McCuaig was not available for an interview requested by the Sun. However, spokesman Anne Marie Aikins insisted that as soon as McCuaig became aware of the problems, he acted to change policy and ordered an audit.

“Since 2011, tickets to cultural or sporting events are declined, or if received, they are not used, or they are assigned for charitable fundraising, and they are tracked,” she said.

But the documents obtained by the Sun suggest Metrolinx’s leadership knew the perks ban was coming yet continued to sign the deals that broke the rules.

On April 20, 2011, Deputy Minister of Transportation Carol Layton advised McCuaig of the coming perks ban. Addressed to the CEO, “Dear Mr. McCuaig” is crossed out and replaced with a handwritten “Bruce.” It advised that a perk is a privilege not generally available to others and is not business related.

Layton told McCuaig that the policy would come into effect June 1, 2011, but advised him that the advance notice was provided to give Metrolinx time to comply with the new rules.

“Existing arrangements should be reviewed to identify items that might be considered perks,” Layton said in the letter. “Any such item must be either approved as an allowable special consideration under the directive, or it must be discontinued.”

Attached to the letter was the directive itself, a “questions and answers” document about the new rules, and a reference guide for agencies.

On May 25, 2011, McCuaig held a meeting with vice-presidents and directors of the organization about the directive and “its impacts for us.” Five days later, McCuaig was asked to approve the agency’s sponsorship of TIFF.

The proposal asked for $30,000 of Metrolinx’s $1.2-million marketing and advertising budget for 2011-12.

On June 1, 2011, Metrolinx inked the TIFF deal, with the organization’s treasurer and GO Transit president Gary McNeil signing the agreement, which outlined in detail all of the tickets the agency would receive.

The April 2, 2011, letter from Layton spells out that even before the directive comes into effect, organizations like Metrolinx are to review any agreements that contain items the might be considered perks. They are to be discontinued.

On June 20, 2011, Layton sent a memo to McCuaig reminding him of the perks ban and advising that it would now come into effect Aug. 2, 2011. At the same time, agencies across the province were advising their managers and employees of the perks ban and its impact.

The Ontario Hospital Association notified its members of the new directive. Two major law firms, Hicks Morley and Faskin Martineau, advised their public sector clients of the ban. School boards and colleges also informed workers of the new rules.

After the ban came into force as planned on Aug. 2, 2011, Metrolinx staffers attended several exclusive galas and sponsor events. They also received 24 tickets to gala screenings and 32 tickets to non-gala screenings. It’s not clear what became of the tickets.

Meanwhile, the Rogers Centre deal was in the works in early September. It was later agreed to, but no one actually signed the deal. It was, however, still executed and Metrolinx received 100 tickets worth $27,000 to the Bills game on Oct. 30, 2011. Rogers Centre did not return a request for comment by press time.

Two days before the game, McCuaig sent strategic marketing director Vasie Papadapoulos a message raising concerns about the Promotional Partnership program.

“I am concerned about reputational risk with how we are managing these kinds of events,” he wrote, adding that he’d like to further discuss the matter.

In the days that followed in early November 2011, a number of e-mails between McCuaig and senior executives at the agency mention the province’s perks ban. A full-blown audit of the Promotional Partnership program started in late November.

Jenna Mannone, spokesman for the Ministry of Government Services — which oversees the perks directive, told the Sun the province’s “firm expectation” is that organizations will follow the rules.

“Our understanding is that when the audit was completed, Metrolinx had strengthened the rules with respect to perquisites that cover all individuals in the organization,” she said in an e-mail.

Mannone did not say if anyone at Metrolinx was reprimanded by the province over the perks ban and directed all further questions to the transit agency.

Patrick Searle, press secretary to Transportation Minister Glen Murray — who oversees Metrolinx, referred all questions to the transit agency and the Ministry of Government Services.

Aikins said that Metrolinx senior managers received a copy of the Perquisites Directive in 2011 and are responsible for ensuring staff comply with it.

“Metrolinx reviewed its employment arrangements to comply with the directive to ensure no employees receive inappropriate perks,” she said.

When asked why, if the TIFF and Bills in Toronto agreements constituted a breach of the provincial perks ban, Metrolinx signed the deals anyways, Aikins did not respond. When asked if the Ministry of Government Services ever investigated the apparent breaches of the directive, Mannone referred the question to Metrolinx.

Last August, Aikins told the Sun an unidentified employee was disciplined over the ticket problems but would not elaborate.

Progressive Conservative transportation critic Frank Klees said he doesn’t believe McCuaig, insisting it appears there are no consequences for violating government rules.

“The taxpayers deserve to know what is happening,” Klees said. “Accountability only counts if it’s transparent ... Who can believe any action was taken if they’re not willing to be transparent about it?”

Rosario Marchese, NDP urban transportation critic, said it was clear the agency knew the rules and ignored them.

“Metrolinx brushed it aside,” he said. “The Liberals know the rules ... They’re deliberately brushing these things under the carpet.”

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On top of $30,000 of taxpayer cash spent to sponsor the Toronto International Film Festival in 2011, Metrolinx also forked over $24,000 to put GO Transit-branded umbrellas in gift bags for the event.

The transit agency spent the cash to buy 6,100 umbrellas. Metrolinx spokesman Anne Marie Aikins said the expenditure is not unlike past purchases of pens, bags and miniature cardboard cutout trains for children.

“As part of its outreach and marketing efforts, GO Transit purchases items with its logo on it to help create awareness and build ridership,” she said in an e-mail.

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Nearly a year after the province told Metrolinx it planned to ban public sector perks, the agency was still actively trying to renew what appeared to be a perk-laden deal with the Toronto International Film Festival.

Documents obtained by the Toronto Sun through a Freedom of Information request show the transit agency’s strategic communications department was in talks with TIFF officials to renew a deal which saw them score exclusive access to glitzy galas, cocktail parties and provided with dozens of tickets to film screenings.

“We are hoping to nail down Metrolinx’s participation (in whatever capacity) by early 2012 to ensure you can enjoy full sponsor benefits,” wrote Jennifer Frees, TIFF corporate sponsorships manager, in November 2011.

That agreement would have called for Metrolinx to pay $35,000, up $5,000 from the year before, to sponsor the 2012 event. The proposal stipulated some of the tickets could be donated to charities except for “non-public events.”

As late as April 27, 2012, a manager was still seeking approval for the agreement which was turned down.

“As the documents you received clearly explain, the TIFF agreement was not renewed in 2012 as it was determined that the return of investment was too low,” said Metrolinx spokesperson Anne Marie Aikins.

Officials with TIFF declined comment, citing client privacy.