Hydra House transfer talks still not concluded.

WINNIPEG--The Manitoba government and the St. Amant Centre are in detailed negotiations to shut down Hydra House and transfer its residents, adults and children with disabilities, to the care of St. Amants.

The province's Auditor General found $1.4 million in questionable spending by the privately controlled agency.

The government promised to cease funding of the clients and find another agency to take over the program. It has negotiated with several agencies for the past six months. Meanwhile, the province continues to fund the agency until an agreement can be concluded. The province refused to fund Hydra House in July 2004. She said this week that a handful of agencies have come forward since then.

One of the issues in the negotiations is whether the province will purchase the group homes from Hydra or move the residents to new facilities.

In July 2005, auditor general Jon Singleton estimated the salaries paid to Hydra executives over a period of six years were about $1.4 million--or 58%--greater than would have been paid had the programs been operated by not-for-profit agencies. He also reported that the owner and executives used public money to furnish a Florida vacation home, and buy Cadillacs.