In today’s update, you’ll see that the federal government is getting into an increasingly ugly battle with the provinces over its move to create a national securities regulator. This would be an important corporate accountability tool, one which would finally put Canada on par with the grown-ups like the U.S. (which has the Securities and Exchange Commission we’ve heard so much about since the Bernie Madoff Ponzi scheme became public). Right now, Canada has a hodge-podge of provincial regulators, making investing in this country a riskier business than it ought to be. Some have even suggested that international investors deliberately steer away from Canada because we don’t have a national securities regulator. When one also considers the pathetic enforcement by the RCMP, who could blame them?
The federal government, to its credit, fully understands this and is preparing for a big battle. The only concern: that this might turn into a full-fledged fight over powers under the Constitution. The provinces are banking that the Section 92 of the Constitution gives them power to regulate their own securities exchanges. Experts beg to differ, based on the international nature of trade in today’s world. One expert wondered “whether either or both of the provinces involved [Alberta and Quebec] are adamantly opposed to a national regulator or whether they’re just playing a very tough poker game.”
Meanwhile, the usual whistleblower scenario is unravelling in Manitoba. The consultant who spoke out about incompetence at Manitoba Hydro is now fighting in court as the Crown corporation tries to get around a confidentiality agreement. The reason they give is to use her report in an audit. The real reason, though, is that they want to out her and tear her work to shreds without the benefit of her being able to defend herself. I call this the bogus investigation tactic, and it’s an oldie but a goodie.
In other news, the Conservative Party of Canada won its case on “in-and-out” campaign financing. I didn’t really cover this story much as it was more a political issue, but it’s worth mentioning now that it’s settled. Back to politics as usual, I guess.
In international news, there are now two bank whistleblowers in the news. The U.S. has just put UBS whistleblower Bradley Birkenfeld in prison – which has people pretty mad as it sends a clear message about the continued desire to punish whistleblowers. He’d have been better protected if he had been implicated and offered to play state’s witness after being brought in. But he may win the civil suit to claim an award under new U.S. laws. The other story is about another Swiss bank whistleblower. One person commented that these stories are a sign that bank secrecy is breaking down.
Also, Karlheinz Schreiber is now on trial in Germany. I wonder if there will be any revelations about his activities here in Canada? We can only hope.
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Feds and Provinces Fight over National Securities Regulator
Manitoba Hydro Whistleblower Faces Tough Road
Courts Rule “In and Out” Advertising Legal
UBS Whistleblower Starts Prison Term; Another Banker Blows Whistle
Karlheinz Schreiber Goes on Trial in Germany
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Feds and Provinces Fight over National Securities Regulator
Scrutiny on securities regulator
Financial Post, January 19, 2010
Summary: There was a time when constitutional references to the country’s high courts had an air of sanctity about them. Not so the fight brewing over the decision by Jim Flaherty, the Finance Minister, to create a national securities regulator, which has spawned three court references over the constitutionality of the federal government’s proposed move.
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Manitoba Hydro Whistleblower’s Faces Tough road
Hydro rate-hike hearing complicated by whistleblower concerns
Winnipeg Free Press, January 20, 2010
Summary: The confusing regulatory mess caused in part by a whistleblower complaint got a little messier Tuesday morning as lawyers argued about whether Manitobans ought to pay higher power rates while the mess gets sorted out.
Who’d dare blow the whistle now?
Winnipeg Sun, January 21, 2010
Summary: For anyone thinking of blowing the whistle on one of the province’s Crown corporations, the recent experience of a New York-based risk assessment whiz who did that very thing should make them think twice. The woman, known only to the public as the mysterious Manitoba Hydro whistleblower, has had her life thrown upside down since sending a 260-page missive outlining her concerns about alleged mismanagement at the utility. Instead of being thanked for being brave enough to risk her livelihood and come forward, she faces hefty legal bills while various government officials have played a spirited game of hot potato with the complaint. (Column)
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Courts Rule “In and Out” Election Advertising Legal
Conservative Party wins ‘in-and-out’ campaign ad case
Calgary Herald, January 19, 2010
Summary: The Conservative party has won an important court victory over the legality of $1.2 million in so-called “in-and-out” advertising purchases from the 2006 election campaign.The Federal Court of Canada on Monday ordered Chief Electoral Officer Marc Mayrand to allow the campaigns of two Tory candidates to claim expenses for their share of pooled radio and television ads.
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UBS Whistleblower Starts Prison Term; Another Banker Blows Whistle
Birkenfeld enters jail after initiating disclosure of UBS tax fraud scheme
Whistleblowers Protection Blog, January 8, 2009
Summary: UBS Whistleblower Bradley Birkenfeld, who exposed billions of dollars of tax evasion and fraud, began a 40-month jail sentence. Activists are outraged, arguing that it punishes the messenger, calling it “an insult to every honest American who must work hard and pay their taxes,” and noting that it will “have a radical chilling effect on the willingness of other bankers to step forward and expose fraud.”
Swiss Banker Blows Whistle on Tax Evasion
New York Times, January 18, 2010
Summary: Rudolf Elmer continues to disclose the inner workings of Julius Baer — one of many Swiss institutions that investigators say help clients evade billions of dollars in taxes by routing money through offshore havens in the Caribbean and Switzerland.
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Karlheinz Schreiber Goes on Trial in Germany
Schreiber trial begins in Germany
CBC News, January 18, 2010
Summary: The trial has begun for Karlheinz Schreiber, a German-Canadian businessman extradited from Canada to Germany last summer to face charges of tax evasion over his role in a political financing scandal dating back to the 1990s.
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Workplace Bullying
Bullying in the Workplace
CBC Radio, November 30, 2009
Summary: The Ontario Government is considering a bill that would out-law bullying in the workplace. As part of our on-going series Work In Progress, CBC Radio’s producer, Howard Goldenthal, delves into the forms that workplace bullying can take, assess the damage it can do and the strategies for dealing with it. (Note: this is a podcast)
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