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RCMP shelved two top officials after $4M billed... - Thursday, April 08, 2004 at 11:54

PUBLICATION:  The Ottawa Citizen
DATE:  2004.04.07
EDITION:  Final
SECTION:  News
PAGE:  A5
BYLINE:  Andrew McIntosh
SOURCE:  The National Post

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RCMP shelved two top officials after $4M billed improperly

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An assistant RCMP commissioner and a second senior manager were relieved of their duties last November, weeks after auditors found the RCMP improperly billed at least $4 million in expenses to its employees' pension fund that were unrelated to pensions.

Jim Ewanovich, the first civilian to become an RCMP assistant commissioner and the force's chief human resources officer, was relieved of his duties after the irregularities were reported in a secret audit delivered to RCMP Commissioner Giuliano Zaccardelli, , sources told the National Post.

Dominic Crupi, another RCMP civilian member, who was the director of its National Compensation Policy Centre, was relieved of his duties on Nov. 24, following the audit, the sources said. Both men enjoyed generous performance bonuses in 2003, with Mr. Crupi's bonus topping $13,000, even as the internal audit was ongoing, sources said.

Mr. Ewanovich declined comment on the pension billing irregularities and said his "retirement" was planned.

Mr. Crupi said he was following orders -- whose orders he would not say -- when he billed the pension fund for administrative expenses unrelated to pensions and that all federal government rules were followed. "I followed direction and I was completely transparent in what I did and I told people what I was doing," Mr. Crupi said.

Late Friday, the RCMP announced plans to reverse $4 million in what it called improper administrative charges to the RCMP Employee Pension Fund, requesting Ottawa police to conduct an investigation into possible criminal wrongdoing.

Those moves came only after the findings of a secret internal audit -- delivered to Commissioner Zaccardelli in November -- were revealed by the National Post. Neither man is facing any internal disciplinary action.

Insp. Tim Cogan, a media spokes-man, declined comment. "What you need to focus on here is the fact that there is an investigation going on and we can't comment, period," he said, citing privacy of "personal information."

Mr. Ewanovich, 55, was relieved of his duties at RCMP headquarters in early November 2003. He was given an office at a new RCMP building in Ottawa for a few months before he was sent home earlier this year. A brief message sent to RCMP employees said only that he was taking early retirement and would be replaced immediately.

Despite the disturbing audit findings involving activities under his watch and allegations that the RCMP hired his daughter, Alexa Ewanovich, for two consecutive summers, Mr. Ewanovich remained on the RCMP payroll until April 1 and only then took early retirement, the sources added.

Mr. Crupi, a former Public Works Department employee, was also relieved of his duties after allegations of misconduct and nepotism were made against him. In separate interviews, Mr. Ewanovich and Mr. Crupi said their departures from the RCMP were unrelated to the internal audit concerning improper billings to the RCMP employee pension fund.

Mr. Ewanovich said he told RCMP management of his plans to take early retirement last year. He declined comment on any financial transactions improperly billed to the pension fund, saying the internal audit is still underway and there is an ongoing criminal investigation by Ottawa police.

Mr. Crupi also said he was not relieved of his duties by the RCMP. "No, I was on leave," he said. Asked what kind of leave, he replied: "Well, I probably shouldn't answer any more questions." He also denied any wrongdoing relating to the improper pension fund billings. "Everything that was billed was appropriate," Mr. Crupi said.

Asked why Commissioner Zaccardelli would reverse $4 million in improper charges to the pension fund if the administrative and other charges unrelated to pensions were indeed appropriate, Mr. Crupi replied: "You'd have to ask him. They were within guidelines established by the Treasury Board." Asked who gave him "direction" as he called it, he said: "I really can't answer." Asked if Mr. Ewanovich offered direction, he replied: "We billed according to the proper procedures as far as we could, as best as we knew."

The audit of pension administration found that hiring by Mr. Crupi's centre for work to clean up data in an RCMP human resources system did not follow the proper RCMP staffing regulations and many relatives were hired.