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Toronto's MFP scandal provides lessons
THOSE WHO MERELY read the news headlines might be forgiven for thinking that Toronto's judicial inquiry into computer leasing and external contracts cast a pall over public sector procurement in general and leasing in particular.
Madam Justice Denise Bellamy's report in the Toronto Computer Leasing Inquiry and the Toronto External Contracts Inquiry far from closed the door on sale-and-lease-back arrangements and other alternative methods of procurement and financing. The report clearly concludes (recommendation 169) that "Leasing should remain a viable financing option for the City."
Launched in 2002, the two inquiries involved 22 parties and 156 witnesses and spanned 214 hearing days, culminating in the September 12,2005, release of a four-volume report.
While leasing was a significant focus of the inquiries, what attracted criticism was how Toronto handled particular leases, not the leasing concept itself. After all, as the report noted (Volume 1, p. 98), some 85 percent of public and private sector organizations lease IT assets. The baby of leasing should not be thrown out with the bath water of unethical behaviour and negligence uncovered by Justice Bellamy. Instead, her report (www.toronto. ca/inquiry) should be treated as a "how to" manual that illustrates pitfalls to avoid and suggests best practices to emulate. Readers can draw at least 10 common...