by arthur Weinreb,
September 28, 2004
This Thursday marks the second anniversary of the start of the inquiry into the leases entered into for computers by the city of Toronto with a company previously called MFP Financial Services Ltd. (for some strange reason the company has now changed its name). The terms of reference of the inquiry include how an agreement to lease computers at a cost of $43 million ballooned to almost twice that amount.
although the sittings of the inquiry have been subjected to lengthy adjournments for legal reasons, it seems to be dragging on and on and getting no closer to finding out how and why the leasing contract cost the city of Toronto so much money.
after two years with no end in sight, it is estimated that the total cost of the inquiry might reach $17 million, hardly a mere pittance for a city that must go begging to other levels of government to provide essential services to its citizens. It’s time to stop throwing good money after bad and end the inquiry.
It appears that in the last few weeks, the inquiry has gone off on a tangent. On November 1, 1999, MFP salesman, Dash Domi, came into possession of $25,000. Records show that later that day, Domi called then Toronto Budget Chief, Tom Jakobek, and later drove into the underground parking lot at Toronto City Hall and spent 13 minutes in the garage. Two days later, Jakobek paid $21,000 on his american Express account.
In an affidavit, sworn under oath, Jakobek stated that the money to pay off his amex card came from his father-in-law, Kenneth Morrish. a forensic audit revealed that the money to Jakobek did not come from Morrish--rather it came from Jakobek’s mother and grandmother, much of it in the form of cash. at the time of this writing both Jakobek and his mother have testified about these transactions at the inquiry.
What the inquiry is examining is whether or not Domi paid a bribe to Jakobek in the underground parking lot on November 1, 1999 as part of the deal for MFP to secure the leasing contract. although the evidence of the money flow and of Domi’s short stay in the underground at Toronto City Hall are suspicious to say the least, there is no hard evidence that Domi ever paid any money to Jakobek. Both Domi and Jakobek denied that a payment ever took place. Domi testified that he gave $25,000 to his brother Tie, who played for the Toronto Maple Leafs back when major league hockey was in existence. Tie Domi gave evidence that he did receive that amount from his brother; partly to repay money that Tie had previously given Dash.
at this point, the inquiry seemed to be getting away from its mandate. Tom Jakobek’s mother was called to testify as to whether or not she and her mother gave the money to the former budget chief. This is all very interesting, but this line of examination does nothing to get to the bottom of the leasing contract between the city of Toronto and MFP Financial. The inquiry seems to have changed from one of examining the leasing agreement to that of examining Jakobek.
When Jakobek swore the affidavit stating that he got the money to pay off his american Express card he was at best, guessing and careless with the truth, and at worst, lying. Both Jakobek and Dash Domi are denying any payoff, and the most that the inquiry will be able to show is that Jakobek was getting money from unknown and suspicious sources. But there is no evidence that shows that he received any money related to the leasing contract.
Rumour has it that there is a new culture at Toronto City Hall. as former lobbyist, Jeff Lyons has stated, bureaucrats no longer socialize with or even talk to people who are trying to do business with the city. If this is in fact the case, the situation that led to the outrageous cost of leasing computers has now been remedied and there is no need to keep the inquiry going to change the way Toronto City Hall operates.
The city of Toronto will be in no hurry to end the inquiry for purely partisan political reasons if nothing else. No doubt there are some councillors salivating at the possibility of further sinking Tom Jakobek. and ending the inquiry to save money for the taxpayers will never be important to this council.
If the cost of keeping the inquiry going would prevent the left-leaning council from constructing more bicycle lanes or otherwise create more gridlock, it would be a good thing. But we all know that that will never happen. Hard services such as garbage collection and fixing potholes will suffer.
The MFP Inquiry should be quickly brought to a close. But it won’t be.