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Ornge lawyer denies involvement in marketing agreement - China Wood Pellet Machine by airbru airbru





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Ornge lawyer denies involvement in marketing agreement - China Wood Pellet Machine


 
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TORONTO — Ornge's in-house lawyer denied Wednesday that she wasinvolved in coming up with a controversial marketing servicesagreement that is alleged to have been part of a kickback scheme. Cynthia Heinz, who left Ornge in February, said she wasn'tresponsible for the $4.7-million deal Ornge inked withAgustaWestland after the publicly funded air ambulance servicebought 12 of its helicopters for $144 million. But that contradicts the testimony of two other witnesses, who sayHeinz was one of the people responsible for coming up with themarketing agreement. Heinz, who was seconded to Ornge from her law firm FaskensMartineau, acknowledged that she provided legal advice on the dealand approved all the drafts of the agreement.

But she denied that she had any inkling that there was anythingwrong with the agreement, which she thought was a "separate,arm's-length transaction" between Ornge and Agusta. "I had no indication that anything was amiss," she told alegislative committee, her voice breaking. "I can assure you that there was no way I would put my reputation,my family, at risk for this." The committee has heard that Agusta paid an Ornge spinoff company$6.7 million, which included the marketing services agreement. Both the auditor general and Ornge's new CEO Ron McKerlie have saidthey found no evidence that the work performed under the agreementreflected the amount of money paid. Agusta has vehemently denied any wrongdoing in its dealings withOrnge, which have come under scrutiny in the wake of a criminalinvestigation of "financial irregularities" at the air ambulanceservice.

But the testimony of former Ornge executives has only raised morequestions about the controversial agreement. A former Ornge executive, Rick Potter, testified that he convincedAgusta to waive about $10 million in extra fees, but then-CEO ChrisMazza insisted that they be paid. Ornge ended up paying Agusta $7.2million in additional charges. Potter said he told Heinz that "thiswas nuts." Maria Renzella, former chief operating officer at Ornge Global,testified that Mazza struck a deal to pay Agusta for weightupgrades.

In return, he wanted a $4.8-million donation from Agustato be used to help with Ornge's "revenue-generating opportunities." She said she was advised by Ornge's lawyers that it couldn't usethe money in the way Mazza wanted unless Ornge could demonstratethat there was a value for the service being given. Renzella said she suggested to Mazza that Ornge could providemarketing services and Mazza talked to Agusta about it. Another former Ornge executive, Tom Rothfels, said it was hisunderstanding that both Heinz and Renzella were primarilyresponsible for carrying out Mazza's orders to come up with themarketing agreement. Heinz confirmed that Ornge asked if it could have Agusta pay thepenalties and various credits to one of its spinoff companies "sothat they could use that for their other ventures." But she and the rest of the Faskens legal team made it clear toOrnge that they couldn't divert the money to another corporation,because it belonged to Ornge Investment Trust, an entity created toraise the cash to finance the purchase. "We made it very clear to them that if they didn't want the cash,they would have to use that money," Heinz said.

"And the penalties and the credits could be used as a set-off thenfor any upgrades that they were going to receive." Heinz said she was repeatedly reassured by Renzella and other Orngeexecutives that the deal was above board and that they were payingfair market value for the weight upgrades. But some of the committee members weren't convinced. "Sitting here, it looks like you drank the Kool-Aid," said NDPcritic France Gelinas. "They are telling you that this is what they want to do with thismoney, you tell them you're not allowed to do this, it is illegal,they come back with this marketing agreement which Ornge has neverbeen into, has never provided," she said. "(Mazza) hired his girlfriend to do the work and the daughter ofanother executive of Ornge to do the work, and you think thateverything is just fine, that they are following the letter of thelaw?" But Heinz insisted that both Potter and Rothfels are mistaken abouther involvement in the marketing agreement.

She said she only talked to Mazza once about it in August 2010 --long after Ornge agreed to buy the helicopters in 2008 -- when heasked her why the agreement hadn't been signed yet, she said. "I never received any instructions," Heinz said. "I've never hadany conversations with Dr. Mazza about this agreement." Rothfels showed up in her office one day and talked about theagreement, she said. "He said, 'You and Maria are being set up to take the fall,"' Heinzsaid.

"And I said, 'What in the world are you talking about?"' She said Renzella reassured her that there was nothing wrong withthe agreement. Rothfels left Ornge shortly after and she didn'tspeak to him again. Potter did tell her about the discount he'd negotiated, butcouldn't produce any paperwork to prove it, Heinz said. Then in January -- after the government installed new leadership atOrnge -- she was given a letter that Agusta wrote to Potter inDecember 2009 that corroborated Potter's deal with the company. Shesaid she took it to Ornge's board.

Asked what went wrong at Ornge, Heinz -- like many other witnesses-- pointed the finger at Mazza, the mercurial mastermind behindOrnge. "He wanted too much, too fast," she said, crying. Mazza was "bright" and a "visionary" who wanted to create aworld-class air ambulance service and expand it globally. But hegot ahead of himself and "made a lot of enemies," Heinz said. "Within that corporate office, there was a lot of fear," she added."So it was a combination of things.

And there are a lot of peoplewho are suffering as a result." But Heinz "should have known better," said Progressive ConservativeFrank Klees. With so many conflicting accounts of what happened at Ornge, it'shard to know who's lying and who's telling the truth, he said. "At the end of the day, what we really need is a full-fledgedpublic inquiry," Klees said. Mazza has yet to testify before the committee and a secondSpeaker's warrant has been sent to compel him to appear July 18. According to his lawyer, Mazza was declared unfit to testify by twopsychiatrists.

He took medical leave from Ornge last December amidallegations about questionable business deals and his $1.4-millionpay. Auditor general Jim McCarter has criticized the government forfailing to oversee Ornge, despite giving it $730 million over fiveyears and allowing it to borrow another $300 million.

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