September 30, 2005

Then why are my taxes so high?

Sept. 30 - I'm too tired to do a total deconstruct of remarks made by Canada's Ambassador to the U.S. Frank McKenna (McKenna calls United States government dysfunctional) but he does have a few good points:

"In Canada, whether we like it or not -- and often we don't like it -- but essentially we have party discipline, and if you can convince the Prime Minister or a minister that something should be done, invariably it can end up being done," Mr. McKenna said.
True, totalitarian governments do tend to be more efficient, but the question lingers: what if you can't convince the PM to do something?

And then there's this:

At the same time, he said, the United States faces "a very difficult financial situation," with predictions its deficit will hit or exceed US$500-billion this year.

"That's not to speak of the fact that that doesn't include unfunded liabilities for social security, which, some estimate, could run into the twenties and thirties of trillions of dollars."

By comparison, Canada is in its eighth consecutive year of surplus, with a dropping ratio of debt to gross domestic product, he said.

Yeah, we know how you reduced the national debt. The military, health care system and provinces were underfunded, but the economy was so robust that we could afford the corruptions of Adscam and the unfolding questions about Earncliffe contracts.
"Our pension plan, instead of being in deficit, is actuarially balanced for the next 75 years."

He also praised Canada's health care system and the country's abundance of natural resources.

Whatever, dude. Just don't get sick up here.

(Link via Neale News.)

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September 29, 2005

The new G-G

Sept. 29 - Someone in my family asked why I had posted nothing on the Michaelle Jean, Canada's new Governor-General. I replied that she holds French citizenship, she has been appointed to represent the Queen of England, and what's wrong with this picture? (My kids and husband are old enough to handle my sarcasm wit.)

Well, she's announced her intention of giving up her French citizenship. I can't deny that's an improvement.

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September 28, 2005

Dingwall resigns at head of Canadian Mint

Sept. 28 - David Dingwall, whose name came up during the Gomery Inquiry into Adscam and, more recently, due to his extracurricular activies as an unregistered lobbyist for grants with the Technology Partnerships Canada (TPC) on behalf of Bioniche, resigned as head of the Canadian Mint this afternoon:

The former Liberal cabinet minister has become embroiled in controversy after it was recently revealed he failed to register as a lobbyist for a Toronto pharmaceutical company.

In a statement Wednesday he said he believed all of his actvities were above-board.

Mr. Dingwall stepped aside amid controversy about his lobbying activities, before his appointment to the Mint as well as questions about his expenses while heading up the Crown corporation.

His lobbying activities on behalf of Bioniche Life Sciences Inc. are under scrutiny by Industry Canada.

It should be noted that yesterday, Bioniche announced they would repay Ottawa the $463,974 "success" fee.

Dingwall's expense account was reported on only this morning:

Federal documents released under the Access to Information Act show the office expenses and pay packet of David Dingwall, president of the Royal Canadian Mint, cost more than $1 million last year.

Included in Mr. Dingwall's office billings for 2004 were $1,235 for his annual golf membership, $13,228 in one day of foreign travel, and a $5,728 meal at a posh Ottawa restaurant.

And while Mr. Dingwall has a leased car courtesy of the Crown corporation, his office ran up a $2,500 tab for limousines in 2003.

The wining, dining, globe-trotting and other office expenses added up to $846,464 in 2004, mint records show. In addition, Mr. Dingwall's annual salary -- not including up to 12 per cent in performance bonuses -- is as much as $241,000.

[...]

Other billings released to [Tory critic for the mint] Mr. [Brian] Pallister show Mr. Dingwall, a Jean Chretien-era cabinet minister, has been running up a substantial tab, which included the following in 2004:

- $5,297 for various membership fees;

- $11,173 for meals in Canada;

- $3,317 in foreign dining;

- $40,355 for domestic travel;

- $92,682 for foreign travel;

- $12,487 for domestic hospitality;

- $5,998 for lease vehicle operating costs.

Mint spokeswoman Pam Aung Thin defended Mr. Dingwall's spending, saying each claim has been approved and verified by the Crown corporation's chief financial officer.

When I first began to read about the TPC transactions for which Dingwall lobbied I had to double-check to make sure he was still president of the Canadian Mint -- it seemed inconceivable that someone who already had a plush patronage appointment would also be a registered (much less un-registered) lobbyist. It just goes to prove how naive we can be about how this government operates.

Sept. 29 - The Toronto Sun isn't pulling any punches in today's editorial Dinged by David Dingwall:

This editorial is inspired by David Dingwall, a man who made $277,000 a year as president of the Royal Canadian Mint (until yesterday) and still charged Canadian taxpayers $1.79 for a bottle of water.

And, oh, yeah ... $91,437 on international travel in 2004 alone.

Greg Weston says he was Chewing Our Money and looks on the career which Paul Martin praised in the House yesterday:
Back in 1994, Dingwall was Liberal public works minister when he publicly vowed to eradicate patronage and corruption from the awarding of massive federal advertising contracts.

The senior bureaucrat handpicked by Dingwall to clean up the advertising swamp was Chuck Guite, the same official who helped create it under the Tories.

The rest, as they say, is history. AdScam was born in Dingwall's department the next year, $350 million was blown on the scandalous advertising sponsorship program, and Guite is now facing criminal fraud charges.

[...]

Testimony at the Gomery inquiry into AdScam indicated that in 1998, for instance, Dingwall was paid $12,000 a month by a Montreal advertising executive he apparently had never met, supposedly to provide lobbying advice to VIA Rail, a Crown corporation prohibited by law from hiring lobbyists for anything.

The Montreal ad executive, Jean Lafleur, is a key player in the AdScam fiasco, and told the Gomery inquiry he was ordered by VIA to hire Dingwall and send the bills to the public railway.

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The ethics of Martin and his Liberals

Sept. 28 - Toronto Tory is busy digging up questionable transactions between Liberal Party leader Paul Martin, the government he leads and corporations which, after receving government money, made sizeable donations to the Liberals and/or Martin's leadership campaign. Keep in mind that Martin was Canada's Minister of Finance for several years before his campaign for party leadership.

The Atlantic Canada Opportunities Agency (ACOA) lies at the center of the allegations in Entry #1:

After JD Irving Limited received $700,000 in approved funding from ACOA, they donated $100,000 to Paul Martin's leadership campaign.

Oxford Frozen Foods received $1,600,000 in 2003 from ACOA, and donated at least $50,000 to Martin's leadership campaign.

Keep in mind that the list of donors has vanished from official Canadian government archives (fortunately, Google's snapshot images endure.)

And then there's TESMA, which received received $2,600,000 from ACOA and then donated $15,000 to the leadership campaign.

Is it just me? Either these corporations are so needy that they require taxpayer subsidies or they are so financially secure that they can afford to make political contributions. I don't see a middle ground which is also ethical and, to all appearances, this is a quid pro quo arrangement and the taxpayers are footing the bill.

Entry #2 on Toronto Tory's list concerns something I alluded to earlier: Martin's dilemma in trying to sandwich the date for the next election between reports on audits. I should have included trial dates!

The Earnscliffe Strategy Group has long been associated with Paul Martin, and the article $10M in federal funds go to firm linked to PM in today's Ottawa Citizen brings new figures:

The Earnscliffe Strategy Group, an Ottawa consulting firm with close political ties to Prime Minister Paul Martin, has received more than $10 million in federal government money since the Liberals took power, new documents show.

And another Ottawa polling firm that has sometimes worked with Earnscliffe received more than $61 million in the same period.

Ottawa-based EKOS Research was awarded more than 1,600 contracts over the 111/2-year period, mostly for public opinion research.

The work was done for various departments, agencies and Crown corporations.

Records tabled in the House of Commons on Monday show that Earnscliffe and its affiliates have received 269 contracts, amendments and standing offers since 1993.

During Mr. Martin's years as finance minister, his department repeatedly hired Earnscliffe to do polling and focus groups and provide communications advice, often in advance of federal budgets.

The new records show that Earnscliffe received just under $2 million from the Finance Department alone.

The finance contracts last year became the subject of a political storm as a former public works official alleged that the tendering was specially tailored to ensure the work always went to Earnscliffe. The firm denied the allegation.

Most of the finance work was done by Earnscliffe senior partners David Herle, who ran Mr. Martin's 1990 leadership bid, and Elly Alboim, a former CBC producer.

Additionally, there's been a lot of speculation that Earnscliffe is Martin's Adscam, with contracts going out for little or no work.

The apparent conflict of interest hides another weakness in the Martin government. All governments pay heed to public opinion, but public opinion is usually concerned with short term objectives and governments that lead are presumed to take a longer view.

When public opinion dominates decision-making we end up with a government that hesitates, fumbles and, shall we say, dithers. Harsher types might call it opportunism, something we expect in political parties but reject in governments.

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September 26, 2005

The value of Unasked Questions

Sept. 26 - Two items on the UN, one on oil-for-food and one on the lack of whistleblower protection in Canada have a common denominator: unasked questions.

From Fréchette's U.N. challenge (link via reader JM):

The oil-for-food report, by former U.S. Federal Reserve chairman Paul Volcker, said the U.N.'s systems for preventing mismanagement, corruption and communications gaps were "insufficient," and that Fréchette "knew but did not act upon" reports of major program violations.
Now I'm not a journalist and I never went to journalism school so I could be wrong but wouldn't a real reporter ask about the "knew but did not act upon" part and perhaps even about the allegations that Fréchette actually blocked reports of corruption in OFF from coming before the Security Council? But no; the very next paragraph reads:
But, Volcker concluded, both Fréchette and Annan should be part of the effort to reform the world body, the task that the Montreal-born diplomat and public servant was appointed to do seven years ago, when faith in the U.N. leadership was high.
M'kay. Faith in the U.N. leaderhsip was high when Fréchette was appointed and now, by implication, it's low. The logic of keeping Frechette on when it seems clear that she has failed to accomplish her appointed task escapes me, but I wonder if Ward is perhaps being deliberately ironic in that paragraph. Oh well, one can only hope.

Salim Mansur, always a favourite around here, doesn't mince words: Paul Martin out of touch in reference to Martin's speech to the U.N. (text of speech here.)

Mansur speculates on the kind of speech Lester Pearson would have made:

The former PM and Nobel-Prize-winning diplomat would surely have told the UN that Canada, as a founding member, found intolerable the stain on the organization's reputation due to the corruption, ineptness, nepotism and mismanagement revealed by Paul Volcker's commission of inquiry into the Iraqi Oil-for-Food scandal.

Pearson would surely have reminded the UN of his role in calling for global "partnership for development," and the necessary provision of assistance by rich countries to the poor. But he would also insist the UN cannot be trusted with increased funds unless full reform of its management practices occurred, and the UN secretariat became accountable and transparent.

His idealism was framed by realism, since he knew full well the perennial nature of evil. He would not have shirked taking responsibility for UN failure in Rwanda and the Balkans, and then in scolding member-states for their appalling disregard for the tragedy unfolding in Darfur.

Pearson would also, in my view, have made sure Canada stood firmly together with Britain and Australia as members of a great Commonwealth affirming U.S. President George Bush's message in New York on this same 60th anniversary occasion: "If member countries want the United Nations to be respected -- respected and effective -- they should begin by making sure it is worthy of respect."

My reaction to Martin's speech superceded my usual reaction to vague platitudes and drivel because I was outraged that Martin of all the leaders gathered there would have the nerve to talk about reforms and financial accountability. I did note, however, that he talked about "three pillars," a rather clear lifting of Bush's Whitehall speech which also employed "three pillars" to explain U.S. foreign policy.

Has anyone asked why Martin felt it necessary to plagiarize the president of the United States?

Claudia Rosett writes The Buck Still Hasn't Stopped (link via Newsbeat1) that the "definitive report" issued by the Volcker Inquiry is "hefty" but not definitive.

You should read the whole thing, but this is a CanCon post so I only excerpted this bit about the man said to be Paul Martin's mentor, Maurice Strong, from page 2 of the article:

Part of the problem is that Volcker has imposed on his inquiry the standards not of a prosecutor, but of an accountant. Faced with a pole too tall to measure by hand, he instead tells us its precise circumference on the ground, and lets it go at that. Much has been aired already of Volcker's account of Annan's strange and abiding ignorance of his own son's lively lobbying for U.N.-related business. So let us focus on another character, Annan's former special adviser Maurice Strong, longtime U.N. guru of good governance. (Strong did depart the United Nations this spring, but with Annan's office expressing fervent hopes he will soon return.)

At some length, Volcker does the genuine service of laying out how Strong, in mid-1997, received a check for $988,885 made out to his name (a copy can be found on page 106, Volume II). The check was drawn on a Jordanian bank, funded by Saddam's regime, and delivered by Korean businessman Tongsun Park, who was a U.N. "back-channel" go-between with Saddam. Strong endorsed the check over to a third party to invest in a Strong family-controlled business, Cordex Petroleum. Interviewed by Volcker's team earlier this year, Strong said he did not recall receiving such a check. When shown a copy, he said he did not know the money came from Iraq. Volcker leaves the matter there, concluding that "the Committee has found no evidence that Mr. Strong was involved in Iraqi affairs, matters relating to the [Oil-for-Food] Programme or took any actions at the request of Iraqi officials."

But how hard did the Volcker committee look? In July 1997, the month before Strong cashed the Saddam-backed check, Annan was issuing his first U.N. reform program, reshaping the secretariat. Strong was the major architect of that reform, and was thanked profusely by Annan at the time for "his important contributions." A significant aspect of that reform was the consolidation of the then-new, ad hoc, and diffuse Iraq Oil-for-Food program into a single, more firmly entrenched office. This move tilted control of the daily administration of Oil-for-Food away from the Security Council and toward the secretariat. When the new, unified office set up shop three months later, in October 1997, Annan appointed Sevan as executive director. That marked the beginning of the stretch in which Sevan began taking bribes from Saddam, and the Oil-for-Food program, urged on by Annan, began to grow astronomically in size and scope. Lacking any disclosure of the secret U.N. paper trail that led to the creation of this office and its expanded mission, it is impossible to know whether Strong took a direct hand in setting up the office from which Sevan then, in effect, collaborated with Saddam. Perhaps Strong had nothing to do with it. But Volcker doesn't even ask the question.

Not asking the right questions could be due to oversight or ineptitude, right? Right.

The last item, Whistleblower fires back at Immigration and Refugee Board (link via Let It Bleed), concerns the dismissal of Selwyn Pieters, a man who had gone public with allegations of wrongdoing at the Immigration and Refugee Board:

In March 2004, Mr. Pieters complained to the Public Service Integrity Office that the politically appointed board members who are supposed to decide the fate of refugee claims were violating the Immigration and Refugee Protection Act by not writing their own decisions.

The refugee protection officer also went to the media with his allegations that civil servants were the ones who were doing the decision-making.

Following a probe by a board-hired investigator, IRB chairman Jean-Guy Fleury conceded “improper conduct occurred” in three cases and “appropriate administrative measures” were taken against four board members.

In firing him last month, executive director Marilyn Stuart-Major credited Mr. Pieters with exposing the wrongdoing in which he participated.

However, she lashed out at him for his “deliberate fabrication” in calling the problems at the board “systemic,” and for alleging a “code of silence” existed around the misconduct.

The case is complicated by claims and counter-claims of racism, harassment and retaliation, but there is another issue posed because Mr. Pieters believes that dismissing his claim that the problems at the board are systemic was done prematurely:
He also maintains it failed to delve thoroughly into his claim that the problems with decision writing were widespread.

“I said it was a systemic issue and they're saying there's no evidence of any systemic issues here,” Mr. Pieters said.

“There's no evidence because (they) didn't investigate it.”

Clearly readers can't judge if the review was inadequate, but it does raise some serious questions, including the Board investigating itself, and in light of indications during the Gomery Inquiry that civil servants often exceeded their job descriptions I think this derserves more scrutiny.

After all, if you don't ask, you won't know. Nor will we.

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September 25, 2005

That damned gun registry again

Sept. 25 - I linked this in a post below but it really deserves its own spot. The alarm bells that went off when we were told that the feds had spent $1 million in software were not false, and it may well be that the gun registry is a 'Bigger fraud than AdScam':

Critics of the gun registry are eagerly awaiting Auditor General Sheila Fraser's "Canadian Firearms Program" audit which is scheduled to be released in February -- if we're not in the midst of a federal election campaign.

Fraser isn't doing interviews about the audit, which has been underway for months.

The last time her office attempted to look into gun registry spending was 2002 and the results were explosive. In fact, her team was forced to abandon its attempts to follow the spending on the gun registry because of the absence of records.

"The information on cost recovery provided to the government changed as the program developed," Fraser wrote at the time.

Originally expected to be self-financing by 1999-2000, Fraser and her auditors discovered the target for the firearms program to break even was pushed to 2013 -- an assumption that the program collect $419 million in fees in 2002-03 and about $828 million by 2007-08. (Emphasis added)

What part of accountable government don't people understand? People who vote for the Libranos do so in large part because that party says the right things; I get that. But what kind of brain death fails to connect the lapse between "saying the right things" and "doing the right things?"

There is a sick, twisted mentality at work here. Paul Martin has to time elections these days with an eye on inquiries into scandals and the reports they generate.

To reiterate an old rant, if those who froth at the mouth when they read "Halliburton" would apply some of the same passion when they read about the seemingly endless list of government mis-spending and "absence of records" we might find a lot of common ground.

To re-iterate another rant, let's see some concrete proposals from the CPC to force accountability into public spending (and that includes accountability from any agency, institution or foundation that recents public funds.)

Or, to take another view, if the aim of the Libranos is to initiate "Scandal Overdose" then they are succeeding. I know I'm weary of being angry and I can't help but wonder how many Canadians have begun to block out this kind of news simply to bring some sanity back to their lives.

(Link via Newsbeat1 via NealeNews, two of the most informative sites in Canada.)

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September 24, 2005

Ethics and the Liberals

Sept. 24 - Bill and Angry continue to keep their eyes on the growing questions about how some Technologies Partnerships Canada (TPC) loans were obained. Two weeks ago it was about $3.7 million made to 3rd party intermediaries who were used to help obtain the loans, and now it appears that the investigation has expanded from four to as many as 15 companies that are improperly using lobbyists or middlemen.

Some recent revelations bear yet more resemblence to Adscam-style dealings, namely claims that a lobbying firm, Wallding International, is owned by former Cabinet minister and president of the Royal Canadian Mint David Dingwall, was paid a $350,000 "success" fee for his assistance in getting $15 million in federal financing for Bioniche. Angry has more in this post that poses some questions about the lobbying activies of Dingwall and another former Cabinet Minister, Marc Lalonde, who served under Pierre Trudeau, and now works on behalf of TM Bioscience, a company that has also received money from the TPC.

The TPC is now being phased out and replaced with a new agency, the Transformative Technologies Program. Okay, so they discard a name that has been touched with scandal. But now I'm wondering if it is something more after reading this:

NORTH CAPE, P.E.I. (CP) - Prime Minister Paul Martin said Saturday that he intends to make Canada a major producer of renewable energy.

Martin made the commitment as he toured the site of the new Canadian Wind Energy Institute at North Cape, a blustery village at the northwestern tip of Prince Edward Island.

On Friday, the federal government, through the Atlantic Canada Opportunities Agency, announced it will contribute about $3.6 million toward the establishment of the institute.

As well, starting with the 2006-07 fiscal year, Natural Resources Canada will contribute $1 million annually for two years toward operating costs.

That commitment, however, is expected to extend well beyond two years, but tail off gradually as the institute's own sources of income grow.

Are institutes that receive federal financing required to be audited by the A-G or, like foundations, are they exempt?

Bill and Angry are doing fantastic jobs staying on top of this story and, like Adscam, the allegations of wrong-doing involve people who were once entrusted with the governance of this country.

This is very timely: Toronto Tory has set a self-imposed challenge:

Every day, for the next 30 days, I will post an example of a company or individual who has an unethical relationship with Paul Martin, and/or the Liberal party of Canada/Ontario.
There are more details about the challenge at LIBERAL CORRUPTION - THE ONE MONTH CHALLENGE. Somehow I don't think there will be a lack of material.

Sept. 25 - 17:49 - I missed this post by Kate that expands on the role David Dingwall played in Adscam and connects some more dots.

So many scandals, so little time. The gun registry could be a fraud bigger than Adscam (link via Newsbeat1)"

[Auditor General Sheila] Fraser isn't doing interviews about the audit, which has been underway for months.

The last time her office attempted to look into gun registry spending was 2002 and the results were explosive. In fact, her team was forced to abandon its attempts to follow the spending on the gun registry because of the absence of records. (Emphasis added)

I feel sick.

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September 23, 2005

Our crazy Uncle Paul

Sept. 23 - Crazy Paul's billion dollar shell game: maybe Canadians pay closer attention to US matters than Canadian ones in order to stay sane!

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Fraud in Canada's health care system

Sept. 23 - News that billing fraud is widespread in Canada's health care system isn't exactly unexpected (Health fraud rampant) but it is dismaying to see it confirmed:

NIAGARA FALLS, Ont. - Canada's health care system is rife with fraud that costs the public and private sectors an estimated $3-billion to $10-billion a year, the country's first-ever survey of health fraud indicates.

"It's a big problem. It's a multi-billion-dollar problem and that's a big drain on the health care system," said Michael Chettleburgh of Fraudbox Inc., which did the survey for the Canadian Health Care Anti-Fraud Association.

[...]

Speakers at the anti-fraud association's annual conference told about fraudulent billings by pharmacists, dentists and other health care professionals, as well as the growing problem of people stealing caregivers' identities to illicitly claim payments.

The article notes that the problem isn't limited to Canada, but the realization that the cracks in the taxpayer-funded health care system here are worsened by the greed of some health care professionals further erodes public faith those in the health sector have a calling to cure and heal.

The Canadian Health Care Anti-Fraud Association page doesn't have the report on its page yet but the results of the survey are available in .pdf here at the Fraudbox Inc. site.

(Via Neale News)

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September 22, 2005

Porkbusters!

Sept. 22 - Glen Reynolds is reporting on the initiative to Cut the fat in order to pay the huge costs of Katrina's devastation, and it struck me that this easily has Canadian applications.

Cut the pork to improve the health care system.
Cut the pork to upgrade the military.
Cut the pork to reduce gas taxes.
Cut the pork to reduce taxes period.
Cut the pork to ______________ (your project.)

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Greg Weston on Coffin's sentence

Sept. 22 - Greg Weston writes on the incredibly harsh sentence given to the first convicted participant in Adscam (from Coffin nails Liberals?):

OTTAWA -- The Quebec judge who sentenced one of the AdScam con men to a wrist-slapping for stealing $1.5 million has certainly sent a clear message to all who would even consider ripping off the government.

In the immortal shrug of Jean Chretien: "So, maybe a few million was stolen."

For 15 counts of deliberate and systematic fraud, Montreal advertising executive Paul Coffin was sentenced this week to two years less a day "to be served in the community."

Translated, he has to be home by 9 p.m. weeknights, and lecture university students on "business ethics."

Coffin's pitch to so many young minds will no doubt include horror stories about how his utter lack of business ethics condemned him to a miserable life of big boats, fast cars, fancy houses and expensive wines.

I'm not surprised, but nonetheless I feel ashamed for this fine country.

Paul Coffin betrayed the people he was supposed to serve. He betrayed every single Canadian but the court has ruled that it's no big deal.

Does the word honour even have meaning these days? If it doesn't, and I am becoming increasingly certain that it does not, then dishonour too seemingly has no meaning. And that is the government we're stuck with.

13:57 Sleep can wait; Darcy lends some much needed perspective into Coffin's gentle treatment. Now I'm getting mad again.

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September 15, 2005

Scandal - again!

Sept. 15 - Release of the Gomery Report on Adscam is delayed. The report on the Toronto MFP scandel is out. The issue of accountability - or lack thereof - continues to dismay and anger us.

But scandal seems to be becoming Canada's chief industry, as Bill takes note of yet another Canadian boondoggle which is finally being subjected to scrutiny: Audit of $2.9 billion TPC program expands and (oh my aching head) Paul Martin's mentor, Maurice Strong who was also implicated in OFF, is involved. Again.

One of the findings of the Volcker Inquiry into the U.N. Oil For Food program was the extent to which corruption is institutionalized in the U.N. I fear that much the same may be said of Canada (and Ukraine) and that weeding it out will prove far more difficult than installing new leadership.

The extent of corruption in the civil service and the complacency of the news media are the ultimate impediments to honest government. It's that simple. Shame on the lot of them.

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Canadians troops injuried in Kabul

Sept. 15 - They hold the line so others can be free, and too often at a price: Two Canadian soldiers were injured in Kabul by a roadside bomb during a routine patrol in preparation for Sunday's elections. Details are sketchy, but thankfully the injuries are said to be minor.

This attack is yet another in a series intended to prevent consensual government in a Muslim nation and coincides with the terror attacks in Iraq yesterday and today.

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