WE

Friday September 11, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday September 11, 2020

WE Charity closing Canadian operations, Kielburgers leaving organization

WE Charity is shuttering its Canadian operations and the group’s founders, Craig and Marc Kielburger, will leave the organization entirely, in a dramatic reversal of fortune for the two brothers.

July 30, 2020

The surprise announcement came Wednesday. In a statement, the charity said it would sell its assets to establish an endowment fund for existing international humanitarian programs and to digitize its education resources in Canada.

The statement attributed the decision to the disruptions caused by the COVID-19pandemic and the continued fallout from its cancelled contract with the federal government to administer a student volunteer program. The agreement to administer the Canada Student Service Grant was first announced in June but was cancelled in July amid growing questions about the group’s connections to Prime Minister Justin Trudeau’s family and his former finance minister.

The controversy has “placed the charity in the middle of political battles and misinformation that a charity is ill-equipped to fight,” the statement said. “As a result, the financial math for the charity’s future is clear.”

July 24, 2020

Rather than preventing further damage, the decision to scuttle the government contract marked only the beginning. In the past two months, the charity’s founders, senior staff and former board chair have all testified before parliamentary committees. The affair has led to ethics investigations into Mr. Trudeau and his ex-colleague Bill Morneau, who resigned in August. It also brought to light questions about the organization’s governance, work environment and unregistered lobbyingof the federal government.

Since winning government in 2015, Mr. Trudeau has regularly attended WE events. On Wednesday, the Prime Minister’s Office said it had no comment on WE’s plans to close its Canadian operations.

In July, the charity announced that it would indefinitely postpone its WE Day events for students, restructure its programs, clarify the roles of its charitable and for-profit arms and conduct an internal review. Less than two months later, it’s taking much more drastic steps.

The double whammy of the pandemic and political firestorm has led to significant financial pressures and a loss of sponsors, the statement said. It also places blame for a lack of future revenue on the continued controversy in Ottawa, which has an indeterminate length. It adds that continuing to operate would consume savings that are “essential to establishing the endowment fund.” (Globe & Mail) 

 

Thursday July 30, 2020

July 30, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday July 30, 2020

The Kielburgers boys’ self-described ‘labyrinth’ organizational structure is still murky

July 24, 2020

WE Charity. ME to WE Foundation. ME to WE Social Enterprise. WEllbeing Foundation. Imagine1day. WE 365 LP, and at least two other entities that sound like the prototype numbers for do-gooder androids. There is such a long list of entities in the WE umbrella that the former chair of WE Charity’s board, Michelle Douglas, wasn’t confident enough to say how many.

The brothers clarified that they need to incorporate in every country where they operate. And under Canada Revenue Agency rules, charities can’t operate as businesses in the administration of “social enterprise,” said Craig. So they had to “build a labyrinth to adhere to Canadian laws and regulations.”

Marc later explained the two started the charity when they were children. He said it’s like building a house. “You add a wing, and add a skylight, and add a swimming pool for your kids,” he said. “This wasn’t out of malice.” A global consulting firm, Korn Ferry, has been hired to help streamline the structure.

July 11, 2020

The Kielburgers said the government was fully briefed on the fact they planned to use a separate nonprofit entity, the WE Charity Foundation—which had been set up to help limit liability—as a party to the contribution agreement. (In the agreement, WE agreed to full liability for participants in the program.)

Former board chair Michelle Douglas, in her testimony, described concerns around the executive team’s refusal to provide substantial financial records that would allow the board to fulfill its functions.

“I did not resign as a routine matter or as part of a planned board transition. I resigned because I could not do my job. I could not discharge my governance duties,” she said in an opening statement.

February 18, 2004

She described in March, the executive—including Marc and Craig—had not fulfilled requests for evidence, reports or data that could support their rationale for laying employees off during the pandemic. In a March 25 phone call, she alleged that Craig asked for her resignation. She gave it. Most of the rest of the board left the organization shortly thereafter, although Craig claimed in committee that this could be explained by an existing “renewal” process.

Douglas said she had also raised concerns, in early 2018, about the WE Charity Foundation. “The board was never satisfied that the operation of this foundation was in the best interests of the charity or its various stakeholders,” she said, adding her understanding at the time was that the organization was intended to hold property. In their testimony, the Kielburgers dismissed the real estate claim as an inaccuracy, saying there were “multitudes of purposes” for such an entity.

Although Douglas said nothing in the organization’s operations caused her “deep concern,” she described a climate characteristic of “founder-led” organizations: “We were always striving to get greater insight into the work.” (Maclean’s)



 

Wednesday July 22, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday July 22, 2020

Ethical questions abound in politics

July 16, 2020

For the third time since he became prime minister in 2015, the behaviour of Justin Trudeau is being investigated by the Conflict of Interest and Ethics Commissioner. The investigation involves a proposed non-tendered contract worth $19 million to the WE Charity, which was supposed to operate a new student-volunteer program. Trudeau had participated in the cabinet meeting that approved the contract.

Because both the prime minister and his wife had a close relationship with the charity, the opposition complained to the ethics commissioner that Trudeau was guilty of violating the conflict of interest law. Days later it was revealed that Trudeau’s mother and brother had been paid nearly $300,000 for multiple speaking engagements at WE Charity events. This seems to be a classic case of confusing or intermingling private interests with the public interest, which is the essential nature of a conflict of interest.

The case caused me to reflect on why politicians appear to have such difficulty reasoning and acting ethically. Here are some random thoughts:

July 11, 2020

There is illegal and unethical behaviour in all occupations, but politics seems to involve greater temptations and risks that legal rules and ethical standards will be violated.

Politics involves contention over competing ideas and interests, together with competition to gain power, and these fundamental facts can override respect for ethical norms. Politicians and their advisers take the pragmatic view that if they do not break or bend the rules, they will lose ground to their opponents. They tell themselves that after they win, they will behave in an exemplary ethical manner, but then re-election becomes a strong motivation.

Most politicians enter public life for altruistic reasons of public service. A minority, however, become corrupted by the political process. They develop the view that politics is a game and to the winner go the spoils. Individuals from a famous political family, or long-serving politicians, may develop the view that they are, as a former Liberal cabinet minister declared, “entitled to their entitlements.” Rewarding family and “political friends” is seen as a perk of the job. (Winnipeg Free Press) 

 

Saturday July 11, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday July 11, 2020

PM’s mother Margaret and brother Alexandre were both paid to speak at WE Charity events

Prime Minister Justin Trudeau’s mother Margaret and his brother Alexandre have both been paid tens of thousands of dollars to appear at WE Charity events.

In a response to an inquiry from CBC News, WE Charity has provided details of the speaking fees paid to both individuals for their participation at events between 2016 and 2020.

Both Margaret and Alexandre are registered with the Speakers’ Spotlight Bureau, which arranges appearances for clients in exchange for negotiated fees.

Margaret spoke at approximately 28 events and received honoraria amounting to $250,000. Alexandre spoke at eight events and received approximately $32,000.

May 20, 2016

Prime Minister Trudeau and his government have been under fire since announcing on June 25 they were awarding a $19.5 million sole-source contract to WE Charity to administer the Canada Student Service Grant, a $912 million program offering grants of between $1,000 and $5,000 to post-secondary students in return for supervised volunteer hours.

WE Charity said last week it was pulling out of administering CSSG, citing the ongoing controversy surrounding it and the government’s decision to give the sole-source contract to WE. Prime Minister Trudeau said the federal government would take over the program.

September 22, 2017

News of the payments to two members of Trudeau’s family seems to contradict WE Charity’s earlier claim that it had “never paid an honorarium” to Margaret Trudeau.

The federal ethics commissioner is investigating the WE contract to administer the volunteer grant, after Conservative and NDP MPs contacted the office raising concerns about the relationship between the charity and the prime minister’s family.

This evening, the Prime Minister’s Office confirmed that — as CTV News first reported — the prime minister’s spouse, Sophie Grégoire Trudeau, “received $1,500” for participating in a WE event in 2012, before Trudeau became leader of the Liberal Party.

August 20, 2019

“The prime minister has never received payment for any events with WE,” the PMO said.

Trudeau admitted to reporters earlier this week that he did not recuse himself from cabinet discussions that led to the decision to award the contract to WE Charity.

December 3, 2015

CBC News contacted WE Charity to clarify the terms under which the prime minister and members of his family had appeared at past WE Day events.

“Prime Minister Justin Trudeau, Madame Sophie Grégoire Trudeau and Madame Margaret Trudeau have participated in WE Charity events and programs over the years,” a WE spokesperson told CBC News late in the evening on June 25.

“The charity has never paid an honorarium to these individuals for their involvement in these programs and events.”

The charity said Sophie Grégoire Trudeau’s involvement as an “ambassador and ally” has been “entirely on a volunteer basis and travel expenses related to this involvement were paid for by WE Charity.”

On Thursday, WE Charity emailed CBC News, saying the organization wanted to reach out “proactively” to “provide you with some updated information.”

Less than an hour after the WE statement went out Thursday, Canadaland reported on its website that it had records showing Speakers’ Spotlight had invoiced Free the Children (the not-for-profit arm of WE, now called WE Charity) directly for some of Margaret Trudeau’s speaker’s fees — and had asked WE about the discrepancy. (CBC)