The report released by Jim McCarter, Ontario’s auditor on Wednesday criticized ways to handle or check spending scandals in the province.

Mr. McCarter says that the funds of hospitals in Ontario are squandered on consultants by providing them lavish contracts including free travel and entertainment.

He criticized Premier Dalton McGuinty in controlling the spending scandals, who last year tightened the rules relating to consultants and their travel expenditures. The findings are based on the audit of 16 hospitals.

“The findings are reminiscent of eHealth Ontario, which awarded contracts totalling hundreds of millions of dollars to consultants without competitive tenders”, said Mr. McCarter

The report revealed that 8 hospitals squandered an amount worth $1.6-million on lobbyists. On Wednesday, the Government formulated new regulations to encourage the use of the taxpayers’ money justifiably by the hospitals in recruiting lobbyists. These rules will also be adhered by universities, colleges, school boards and children’s aid societies in the public sector; but have specifically targeted hospitals.

As per the new rules, hospital executives have been told to update their expenses online and if any discrepancy would be found, their salaries can be freezed.

A public apology has been issued by the Ontario Hospital Association and Health Minister Deb Matthews has applauded the findings of the report.