conflict of interest

Thursday December 21, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday December 21, 2017

Trudeau violated multiple conflict laws when he accepted a family holiday to Aga Khan’s island

Prime Minister Justin Trudeau violated ethics rules in accepting vacations to the Aga Khan’s private island in the Bahamas, according to parliament’s conflict of interest watchdog.

Conflict of Interest Commissioner Mary Dawson said Trudeau broke multiple conflict laws in accepting a family vacation at Bells Cay in December 2016. 

And in a report released Wednesday, she faulted the prime minister for hitching a ride on the Aga Khan’s private helicopter to get to the island.

Trudeau knew well the extent of the Aga Khan’s official dealings with the federal government and that should have been a red flag, Dawson wrote.

“Mr. Trudeau failed to arrange his private affairs in a manner that would prevent him from being placed in a conflict of interest. Neither Mr. Trudeau nor his family should have vacationed on the Aga Khan’s private island,” she said.

In a hastily called press conference in the House of Commons Wednesday, a contrite Trudeau apologized and said he will be clearing all future personal travel with the ethics commissioner.

“(The report) makes it very clear I should have taken precautions and cleared my family vacation and dealings with the Aga Khan in advance,” Trudeau told reporters.

“I’m sorry I didn’t.”

He told reporters that he because he viewed the Aga Khan as a friend – even though Dawson stated they rarely talked – he didn’t think the free vacation would be a conflict, saying that he sought a location where he could enjoy “quality family time.”

“On this issue of a family vacation with a personal friend, it wasn’t considered that there would be an issue there. Obviously, obviously, there was a mistake,” he said. (Source: Toronto Star) 

 

Tuesday October 31, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday October 31, 2017

Morneau not the only cabinet minister using conflict-of-interest loophole

 
Finance Minister Bill Morneau isn’t the only cabinet minister who used a conflict-of-interest technicality to maintain control of their assets while in power, the ethics watchdog confirms.
 

September 22, 2017

The office of Conflict of Interest and Ethics Commissioner Mary Dawson wouldn’t identify who else at the cabinet table holds controlled assets indirectly. It would only confirm “fewer than five cabinet ministers” do so, and they are not required to sell those assets off or put them in a blind trust.

 
The story was first reported by the Globe and Mail on Monday morning.
 
The Conflict of Interest Act covers assets that are directly held, a loophole Dawson has complained about.
 
The act defines controlled assets as “assets whose value could be directly or indirectly affected by government decisions or policy,” and includes things like publicly traded securities of corporations, registered retirement and education plans and stock options.
 

September 15, 2017

After being dogged by controversy over the shares and his use of private corporations to hold his assets, Morneau announced earlier this month that he would place his assets in a blind trust and divest shares worth about $20 million in his family-built company.

 
He later said he would donate to charity the difference in the value of his shares in Morneau Shepell between when he was elected in October 2015 and the day they’re sold.
 
Dawson is now considering whether to launch a formal investigation into whether Morneau had a conflict of interest in sponsoring a pension bill known as Bill C-27 while still owning shares in his family’s pension company. (Source: CBC News)

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Saturday October 26, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday October 26, 2017

Bill Morneau vows to donate share profits

On Thursday the embattled finance minister said he will donate the profits earned on his Morneau Shepell shares since he was elected to charity.

The finance minister met with the conflict of interest commissioner earlier in the afternoon.

“I told her it was the intent of my family to donate any difference in value from my family shares from the time I was elected on Oct. 19, 2015, until now,” he told the House of Commons.

Morneau said he doesn’t know what the value of the proceeds is yet.

Morneau said he will unload the million shares, worth about $20 million, he has in Morneau Shepell, the human resources and pension management company his father founded.

“If he hadn’t owned those stocks over the last two years while ministers are banned from owning stocks then he wouldn’t have those profits in the first place,” said Conservative finance critic Pierre Poilievre.

“Can he confirm now if he will donate the resulting tax savings that he will enjoy from the charitable tax credit to help pay off his deficit?” (Source: CBC News) 

Letter to the Editor, Hamilton Spectator  (Saturday Nov 4, 2017)

One-sided cartoon unfair to Morneau

RE: Oct. editorial cartoon

This amusing cartoon, portraying our finance minister doing hoops for his salvation from not putting his family business in trust, is surely very one sided.

He originally sought the advice of our ethics commissioner, who told him that it was not a necessity for him to do so. Now that he is trying to rectify his “mistake” he is subjected to much scorn by the opposition parties.

A cheering Justin Trudeau reminds me that it is hard to recall one MacKay cartoon with something positive about our PM.

A bigger concern is the lack of media support for left-wing Canada. It is easy to list six families/corporations who own the majority of our major print and broadcast media and are all supporters of the Conservatives. Even the CBC, with its president and eight Harper-appointed directors, too often follows suit.

The Star and Spectator used to provide regular support but these days, I find that to be hit and miss. All issues should be subject to scrutiny but it would be refreshing to have more balance.

Richard Ring, Grimsby

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Saturday October 21, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday October 21, 2017

Bill Morneau bristles at questions about personal finances

Finance Minister Bill Morneau dodged questions about his use of numbered companies to hold investments Friday, suggesting he does not have to defend his personal financial choices to journalists.

September 22, 2017

After a week of questions about his own fortune, Morneau showed signs of exasperation during an event in Waterloo, Ont., where he was pitching the government’s “step back” on proposed changes  to the small business tax regime.

Morneau batted away a question about why he held some of his investments in an Alberta company rather than one domiciled in Ontario, where he lives.

“So, is the question why are they numbered companies and they don’t have names?” he said with a shrug.

“Seriously, what I’ve done is expose all my assets to the ethics commissioner. The process we have in our country isn’t that I report to journalists on my personal situation. It’s that I report to the ethics commissioner and I make sure she fully understands my situation so we can get to the recommendations.”

Owning investments in a personal holding company can provide various tax and non-tax benefits. Income in an operating company can face a lower tax rate by using small business deductions, for example.

Morneau said he has now agreed to do more than what the commissioner, Mary Dawson, recommended he do when he took office.

Morneau did not place his considerable holdings in a family company — the publicly traded human resources firm Morneau Shepell — in a blind trust because Dawson had only recommended the creation of an “ethical screen” to ensure he wasn’t making policy decisions to his own financial benefit. The screen was to be administered by Morneau’s chief of staff. (Source: CBC News) 

 

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Thursday November 24, 2016

2016-11-24

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday November 24, 2016

Donald Trump Raises Prospect of Keeping Ties to His Firms

Donald Trump indicated Tuesday he was unlikely to disentangle himself from his business empire as fully as he previously suggested, raising questions about potential conflicts of interest while president.

Mr. Trump and his representatives said during the campaign he would have nothing to do with his businesses if he became president, promising a “total and complete separation.”

But since the election, Mr. Trump has met with foreign business partners and involved daughter Ivanka Trump in such discussions, even though he has said his children will run his companies during the presidency as a way to separate their operations from the White House.

On Tuesday, Mr. Trump told the New York Times that “the law’s totally on my side” and that “the president can’t have a conflict of interest.”

Mr. Trump’s comments came after the Republican contended with other concerns overhanging his transition. Trump University disclosed a $25 million settlement Friday resolve litigation involving allegations of fraud at the defunct organization. And Mr. Trump’s charitable foundation said in a tax filing that it had engaged in self-dealing 2015 and prior years that resulted from payments to “disqualified persons,” or foundation insiders.

The president and vice president are exempt from laws that make it a crime for all others working for the executive branch to use their public office for their own enrichment. (Source: Wall Street Journal)