Charges laid over Sagkeeng health center

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Two separate RCMP investigations into possible corruption at an on-reserve health centre have resulted in arrests in early July.

Paul Cochrane, 56, a former assistant deputy minister with Health Canada's Medical Services Branch (MSB) who lives in the Ottawa suburb of Kanata, was charged with one count of breach of trust and seven counts of fraud against the government on July 3.

Cochrane managed MSB, now called the First Nations and Inuit Health Branch, from 1994 until 2000. The charges against him stem from a two-and-a-half-year investigation by the commercial crime branch of the RCMP's "A" Division into events related to the management of the Virginia Fontaine Addictions Foundation. The foundation managed a now defunct treatment centre located on the Sagkeeng First Nation territory in Manitoba.

RCMP say their investigation began after Health Canada filed a complaint in October 2000 that alleged that Cochrane received bribes in relation to his business dealings with the foundation.

The Ottawa investigation is continuing and may lead to additional charges, lead investigator Sergeant Stephane Bonin said.

In the press release related to Cochrane's arrest, police allege three people had given bribes to the former Health Canada official.

RCMP allege one of those people was Perry Fontaine, who was arrested on July 8 at the Winnipeg International Airport. RCMP investigators from the Winnipeg commercial crime branch charged the 49-year-old former president of the addiction centre with fraud over $5,000.

The charge stems from alleged inflated travel claims that Fontaine made while associated with the treatment centre, said RCMP spokesman Les Dolhun.

Cochrane is alleged to have "provided a preferential treatment" to the Sagkeeng health centre after receiving $50,000 in cash, a sport utility vehicle and four season tickets for the NHL Ottawa Senators for the 1998, 1999 and 2000 seasons from Fontaine. Cochrane is also alleged to have received two other vehicles from other people associated with the health centre and is alleged to have received $10,000 in charitable donation receipts for contributions that were never made.

This is the latest development in a story that began when Health Canada discovered that Cochrane took a seven-day Caribbean cruise with 70 staff members of the treatment centre on the government's tab. When he was ordered home by then Health Canada Deputy Minister David Dodge, he tried to bill the government for his travel costs. When that was refused, he appealed to the Public Service Staff Relations Board, which brusquely rejected the appeal.

Cochrane was suspended without pay on Dec. 8, 2000 and took early retirement.

Health Canada has filed a $5 million lawsuit against the former management of the health centre in an attempt to recover government money that it alleges was not used properly.