The British Columbia Lottery Corp. has agreed to pay former president and CEO Vic Poleschuk, who was fired on June 1, more than $600,000 in severance.

The lottery corporation says it is obliged to pay the severance because legally, Poleschuk was terminated without cause.

Vic Poleschuk will take home more than $600,000 in severance under an agreement made public by the B.C. Lottery Corp.
(CBC)

Information about the package is being revealed two months after Poleschuk was fired on the heels of a scathing report by provincial ombudsman Kim Carter that found ticket retailers were winning too often.

Carter said the lottery system is open to abuse and possible fraud, and lottery officials had failed to protect customers.

An independent audit released Thursday found that the lottery corporation doesn't have sufficient security to stop retailers from fraudulently claiming prizes.

One of the major security shortfalls is that the corporation has inadequate methods for ensuring retailers who win do so legally, the audit found.

Ron Parks, who wrote the audit report, said new measures need to be put in place but that still wouldn't provide total security.

"There is always possibility that there is going to be fraud at a lower level," he said. "As in any business venture or anything that involves cash, there is always some exposure."

Meanwhile, in detailing the terms of the severance agreement that was also released Thursday, the B.C. Lottery Corp. said Poleschuk's severance is in accordance with the terms of his employment agreement.

The package includes $412,500 in wages (18 months' salary), a $144,375 performance bonus and $26,600 in benefits. He is also entitled to a $1,100 per month car allowance during for the 18 months following his termination.

At the time of the termination, Poleschuk's annual salary was $275,000, plus the car allowance and an annual performance bonus of 45 per cent of his annual salary.

Over 22 years, Poleschuk earned pension benefits from both the British Columbia Lottery Corp. pension plan and the supplementary pension plan for the president of corporation.

During the 18 month salary continuation period, Poleschuk will remain a member of both pension plans and pension accrual will be on the same terms as before his termination. Poleschuk has not given consent to release personal information related to the terms and amount of his pension.