Jennifer MacMillan
Toronto — From Friday's Globe and Mail Last updated on Friday, Jul. 17, 2009 02:28AM EDT
Susan Hayhow's stonework century home in Cambridge, Ont., is the envy of her neighbours. With an indoor hot tub, manicured backyard and top-of-the-line appliances, it's perfectly appointed – much like Ms. Hayhow, who appears neatly coiffed and well-dressed in the dozens of photos posted to the websites of her adoption agency and charity. They show Ms. Hayhow during her frequent trips, handing out toys to children in Ecuador and posing in the lobby of the luxurious Sheraton hotel in Ethiopia's capital.
But Ms. Hayhow's financial records paint a very different picture of the 43-year-old's lifestyle – heavily in debt she is now dealing with the bankruptcy of her agency, which has left hundreds of adoptive families in the lurch.
Companies still owed money by Imagine Adoption include a swimming pool business, a home-renovation contractor and a landscaper that confirmed the work was done at Ms. Hayhow's private residence. Also owed money are 400 families, some of whom paid as much as $25,000 upfront to Imagine Adoption, which also operates as Kids Link International.
Ms. Hayhow and her partner, Andrew Morrow, 48, left for Ethiopia a week ago to assist at the transition home caring for 40 children matched with Canadian parents and have been in touch with the bankruptcy trustee. Last month, Ms. Haywood and Mr. Morrow took out a $500,000 mortgage at a rate of prime plus seven per cent on their home, currently assessed at $232,000. The couple had put the home up for sale with an asking price of just under $500,000, but took it off the market.
One adoptive mother said the agency seemed to be flourishing, moving from a smaller basement to a bright, storefront office just over a year ago. The agency was paying $7,000 a month for the new offices, but bankruptcy documents report the rent had not been paid in 10 months.
Sarah, who did not want her last name used, adopted twins from Ethiopia said shortly after she arrived home with the children, she received a letter asking for a $15,000 donation to another charity run by Ms. Hayhow called Global Reach Children's Fund.
“I was just astounded,” Sarah said. “I've never been asked for that kind of money.”
Global Reach Children's Fund operates in Ethiopia and Ms. Hayhow had been fundraising to build a complex called Faith Village that would provide such services as schooling, health care, and food. According to the charity's website, one unnamed family agreed to donate $400,000 last September. Photos posted in December show a poured foundation but there have been no updates.
Imagine Adoption was separate from the charity and maintained its own staff, which included Valerie Goodyear, wife of federal cabinet minister and Cambridge MP Gary Goodyear. Mr. Goodyear attended the grand opening of the agency's new offices last year.
He confirmed his wife, named as co-ordinator of the African adoption programs in an agency newsletter, was laid off on July 10 along with the other 15 employees.
“She was responsible for helping to place children with new families, and was not involved with the financial operations of the agency,” Mr. Goodyear said in a statement.
Deb Matthews, provincial minister for Children and Youth Services, said Thursday the province is working with the federal government to expedite paperwork for the children at the transition home in Ethiopia.
“Our highest priority is to get those kids here and in their homes as quickly as possible,” Ms. Matthews said.
There are also nine children in Ghana who had been matched with Canadian families. The Ministry of Children and Youth Services said the adoptions were suspended when it learned the orphanage, which is not operated by Imagine, was under investigation for child trafficking. Ministry spokesman Kevin Spafford said the orphanage was closed last month.
Ms. Matthews, whose ministry is in charge of licensing adoption agencies, says the province will be following the bankruptcy trustee's investigation of the finances of Imagine, which had a license in good standing.
“We're always looking at how we can improve services for families and this will be an opportunity to do that,” Ms. Matthews said. “We're obviously concerned.”
With a report from Stephanie Chambers
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JENNIFER MacMILLAN
From Thursday's Globe and Mail Last updated on Friday, Jul. 17, 2009 02:28AM EDT
Would-be adoptive parents in Ontario are questioning the province's decision to give a bankrupt adoption agency a fresh licence last October as new details emerge about the organization's unusual expenses.
Families who had paid Imagine Adoption tens of thousands of dollars in the hopes of adopting a child are now among its creditors along with a swimming pool company, a pet store and the car dealerships that supplied the company cars - a Nissan Pathfinder and a Lexus.
Bankruptcy trustee Susan Taves said the high amount of personal expenses by agency executives, including director Susan Hayhow, was brought to her attention by the agency's board of directors and will be investigated as part of a total financial review.
"They've questioned some cheque amounts and some Visa expense submissions that look personal in nature," Ms. Taves said.
There are approximately 30 children at the agency's transition home in Ethiopia who have been matched with Canadian parents, Ms. Taves said. She said there are no other children in the care of the agency, which had another 370 families waiting to be matched with a child. Imagine Adoption also operates in Ghana and Ecuador.
Ms. Taves said the Canadian High Commission in Nairobi has checked that the transition homes are able to continue caring for the children for the time being.
"They're all well, they're all being cared for," Ms. Taves said. "But there will be a need if this takes a long time to find some other funds."
Ms. Taves said she has been communicating with Ms. Hayhow, who left for Ethiopia shortly after the bankruptcy was announced late last week with her partner, Andrew Morrow, who also works for Imagine.
"She's there of her own accord," Ms. Taves said. "She's there to see what she could do, I guess."
Susan Shea had paid Imagine $25,000 to help her adopt a child from Ecuador, and calls the news "devastating."
"They did betray our trust in them," Ms. Shea said from her home in Ottawa. "And we're very shocked by the news considering we were getting updates every month that everything was fine.
"You'd think that if there was any kind of financial problem, their licence wouldn't be renewed in Ontario."
The ministry did not come across any irregularities in the financial statements required to renew the agency's licence, which was in good standing, said Kevin Stafford, spokesman for the Ministry of Children and Youth Services.
Mr. Stafford noted that the ministry doesn't require agencies to submit audited financial statements that would list their expenses in order to renew a licence.
Beryl Mercer was director of St. Anne's Adoption Centre, which was later operated under the name Imagine Adoption by Ms. Hayhow. Ms. Mercer says she rarely drew a salary of over $30,000 a year due to the difficulty of running a non-profit and has never heard of an adoption agency with company cars for employees.
"You'll see there just isn't that kind of money to go around. You're basically operating on a shoestring," Ms. Mercer said.
David Cotter adopted twin girls from Ethiopia through Imagine Adoption, but says the process was far from easy.
"It was clear to me that they had no idea what they were doing," Mr. Cotter said.
"We had no faith in the organization, my wife nor I. We were told repeatedly you'll have a match next week, so that took about four months of 'you'll have one next week.' "
Mr. Cotter said he believes there should be stricter oversight of adoption organizations.
"I don't know what kind of looking into these agencies the province does, but it's not enough."
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