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RCMP warrant raises scandal questions

There's an entire public administration course waiting to be taught based on the 99-page document the RCMP prepared to obtain a search warrant in the Danderfer scandal. Set aside all the unproven allegations of criminal conduct.

There's an entire public administration course waiting to be taught based on the 99-page document the RCMP prepared to obtain a search warrant in the Danderfer scandal.

Set aside all the unproven allegations of criminal conduct. Just look at what the police uncovered about government processes and systems in effect at the time.

Career civil servant Ron Danderfer was assistant deputy health minister responsible for "knowledge management and technology."

Jonathan Burns is a practising physician who has a strong interest in information technology. He was fronting a company that was trying to sell a new health gadget.

In pursuing fraud and breach of trust allegations, police pieced together a fascinating picture of how the two men worked. Danderfer retired in 2007 after being suspended with pay following an internal audit.

It all started when the government issued a request for proposals for a medical consultant to work on e-health ideas.

Burns beat one other bidder. He started on a personal service contract in April 2005 at $100 an hour, to a maximum of $160,800 a year. Burns started sitting in on various meetings and Danderfer grew increasingly reliant on Burns's advice.

He "became a big part" of e-health, bureaucrats told police who later started investigating the relationship. He seemed to have "a fair bit of decision-making authority," said one.

By November, Danderfer found that another doctor was on contract at $150 an hour and he wanted Burns to have the same amount. So he upped the pay in November.

By January 2006, they appeared to be getting along well.

Police cite an e-mail from Burns to Danderfer: "Ron, as an xmas gift to u and your wife ps pick any 4 days this summer to stay at my place in Kelowna ... golf and drink wine ... can't say no."

Danderfer responded: "That sounds great -- we love Kelowna ... thank you."

There were more e-mails confirming the August getaway. Burns touted the full kitchen, the barbecue, the swimming pool and the new hot tub.

The week of the alleged Kelowna holiday, police cite internal e-mails in which Danderfer upped Burns's rate to $195 an hour and increased the maximum value of the contract to $1 million from $446,000.

Police say Danderfer e-mailed Burns about the pay raise: "What is your feeling in this regard?"

Burns responded: "I'll leave it to you but wouldn't say no to higher, but you are the boss. Gotta say thanks. Love working for/with you my friend."

The RCMP have examined invoices showing that in March 2007, Burns billed the Health Ministry for 168 hours of consulting work. He also billed a health authority for 144 hours for the same month. That's 312 hours of work over a 31-day month, or 10 hours every day.

When a Health Ministry contract administrator raised a minor question about his billing, police say Burns asked Danderfer that the administrator be replaced. Danderfer allegedly removed her from the picture and started approving the bills himself.

The next month Danderfer's wife -- an employee in a different government ministry -- started working for Burns on a contract basis. So did Danderfer's daughter.

By April, the two men were exchanging e-mails in some kind of code, police allege.

Burns to Danderfer: "Splitting of the last chickens. 24 per cent me, 50 per cent you, 24 per cent my wife ... For your half the chickens would you like me to name a few per cent to your kids (good iodea now( Take care. The taste will blow your mind." (The typos were in the original.)

Police allege it has something to do with the creation of a company and share holdings.

Police allege that, in April 2007, Burns billed the Health Ministry for 347 hours of work at $195 an hour, for a total, with expenses, of $69,000. He also billed the health authority for 136 hours that month. That's 483 hours in April, or 16 hours a day.

RCMP reviewed just the ministry billing with the former contract administrator. They quoted her response. "Oh my God! ... How can you bill that amount of time in the course of a month?"

Oh my God, indeed.

Next week: The trip to Europe.