Tuesday, February 13, 2001

OTTAWA - Today Democracy Watch, backed by the nation-wide Government Ethics Coalition, called in an open letter on federal Ethics Counsellor Howard Wilson to issue his long-overdue rulings on four complaints about possible violations of ethics rules filed by Democracy Watch since last spring (Please see set out below letter to Howard Wilson). The Government Ethics Coalition, organized and coordinated by Democracy Watch, is made up of 31 groups from seven provinces and the Northwest Territories representing over two million Canadians.

Democracy Watch also called on the Prime Minister to strengthen the ethics code for Cabinet ministers, and called on the Liberal government to pass similarly strong ethics rules for all MPs and Senators. In a vote today at 6:45 pm, Parliamentarians will decide whether to pass a motion by Canadian Alliance leader Stockwell Day that the Ethics Counsellor be given independence and effective investigative powers, and be required to report to Parliament, as the Liberals promised in the 1993 election. The Liberals are requiring Liberal members to follow the party line and vote against the motion.

"Instead of governing with integrity, as they promised to do in the 1993 election, the Liberals have been governing fraudulently by breaking fundamental promises to establish an independent and effective ethics watchdog, and ethics rules for all MPs and Senators," said Duff Conacher, Coordinator of Democracy Watch, "Any Liberal with integrity will vote in favour of the motion for an independent Ethics Counsellor today."

The Ethics Counsellor has also recommended still-secret changes to the current ethics code for Ministers and their staff. Democracy Watch called for clear ethics rules, and strong penalties, to prohibit any MP or Senator and their staff (especially Ministers) from lobbying any government agency on behalf of, or against, any private person or organization. Public officials should be required to help private interests find the government office they want or need, but prevented from in any way lobbying for or against any private interest, or selling access directly or indirectly. "Allowing public officials to lobby for or against private interests is a recipe for corruption that encourages those interests to use any means to influence officials, and encourages officials to sell access and influence," said Conacher.

Democracy Watch has been waiting for months for the Ethics Counsellor to rule on several ethics complaints, most involving Ministers helping private interests, and private interests helping Ministers. Wilson took only four days to rule on a complaint filed during the election about the Prime Minister's role in securing a loan for a hotel in his riding. "When the Prime Minister wants his activities to be given a rubber stamp of approval, the Ethics Counsellor heels on command," said Conacher, "But when presented with clear evidence about situations that are controversial and embarassing to the government, the Ethics Counsellor becomes a lapdog who can't get anything done for months."

Democracy Watch's four outstanding ethics complaints to the Ethics Counsellor are as follows:

1. a letter dated March 20, 2000 called for an investigation of whether fundraising activities by Prime Minister Chrétien, Finance Minister Paul Martin, Health Minister Allan Rock and their ministerial staff for any political party, riding association, or other private organization violated the ministers' ethics code;
2. a letter dated April 13, 2000 called for an investigation into whether junior finance minister Jim Peterson violated the ministers' ethics code, and whether lobbyist and former Liberal MP Barry Campbell violated the Lobbyists Code of Conduct, when Campbell organized a fundraising event in September 1999 that raised about $70,000 for Peterson; the letter also called for an investigation of whether other similar events have occurred for other ministers;
3. a letter dated September 25, 2000 called for an investigation into whether then-Industry Minister John Manley and and senior public office holders at Industry Canada violated ethics rules by having Industry Canada join and participate in BIOTECanada, the registered lobbying association for biotechnology companies, and whether BIOTECanada violated the lobbying code by allowing the participation; and
4. a letter dated November 9, 2000 called for an investigation into the Liberals' Transitional Jobs Fund (TJF) grant approval process in Quebec, which involved ministers, Liberal party officials and party members and raises serious questions about whether the ministers and others involved have broken the ministerial ethics code and the lobbying code.

Ethics Counsellor Howard Wilson has not even acknowledged receipt of any of the complaint letters, and has not ruled on any of the complaints, even though several months have passed.

Howard Wilson
Ethics Counsellor
66 Slater St., 22nd Floor
Ottawa, Canada
K1A 0C9
Fax: (613) 995-7308

February 13, 2001

Dear Mr. Wilson:

We are filing this letter to request that you respond with specific details and dates concerning when you will respond to the four requests for investigations Democracy Watch has filed since March 2000 concerning possible violations of the federal Conflict of Interest and Post-Employment Code for Public Office Holders (the Public Office Holders' Code), the Lobbyists' Code of Conduct (the Lobbyists' Code) and the Lobbyists Registration Act CHAPTER L-12.4 (R.S., 1985, c. 44 (4th Supp.). The Public Office Holders' Code covers all ministers of the Crown, ministerial staff and appointees such as deputy ministers and associate deputy ministers. The Lobbyists' Code covers all lobbyists required to register under the federal Lobbyists Registration Act, CHAPTER L-12.4 (R.S., 1985, c. 44 (4th Supp.).

During the same time period, you have found the resources to investigate far more complex, but no more serious, cases and issue rulings within days (or weeks at most) concerning whether those cases involve conflicts of interest. As a result, we find it inexplicable that you have not found the resources to investigate and rule on our complaints even though several months have passed, and we formally request that you provide an explanation for the delay, as well as a timeline for your response to each complaint.

Democracy Watch's four outstanding ethics complaints were filed with you as follows:

1. a letter dated March 20, 2000 called for an investigation of whether fundraising activities by Prime Minister Chrétien, Finance Minister Paul Martin, Health Minister Allan Rock and their ministerial staff for any political party, riding association, or other private organization violated the ministers' ethics code;
2. a letter dated April 13, 2000 called for an investigation into whether junior finance minister Jim Peterson violated the ministers' ethics code, and whether lobbyist and former Liberal MP Barry Campbell violated the Lobbyists Code of Conduct, when Campbell organized a fundraising event in September 1999 that raised about $70,000 for Peterson; the letter also called for an investigation of whether other similar events have occurred for other ministers;
3. a letter dated September 25, 2000 called for an investigation into whether then-Industry Minister John Manley and and senior public office holders at Industry Canada violated ethics rules by having Industry Canada join and participate in BIOTECanada, the registered lobbying association for biotechnology companies, and whether BIOTECanada violated the lobbying code by allowing the participation; and
4. a letter dated November 9, 2000 called for an investigation into the Liberals' Transitional Jobs Fund (TJF) grant approval process in Quebec, which involved ministers, Liberal party officials and party members and raises serious questions about whether the ministers and others involved have broken the ministerial ethics code and the lobbying code.

You have not even acknowledged receipt of any of the complaint letters, although you have confirmed to the media, for some of the cases, that you are undertaking an investigation.

All of these cases raise serious questions about whether Cabinet ministers and public office holders have violated the following rules, among others possibly, in the Public Office Holders' Code:

• Sub-section 3(1), which highlights the need to maintain "public confidence and trust in the integrity, objectivity and impartiality of government."
• Sub-section.3(2), which requires public office holders "to perform their official duties ... in a manner that will bear the closest public scrutiny, an obligation that is not fully discharged by simply acting within the law."
• Sub-section 3(7), which states "Public office holders shall not step out of their official roles to assist private entities or persons in their dealings with the government where this would result in preferential treatment to any person."

In addition, three of the four cases raise serious questions about whether various people and organizations have violated various provisions of the federal Lobbyists' Code of Conduct.

Overall, your delay in investigating and ruling on our complaints is not only inconsistent with your established complaint-handling process, but also unnecessary given the clear evidence we have provided or is available in all cases.

Therefore, we look forward to your prompt reponse not only to this request that you set out a clear timeline of when you will rule on our complaints, but also to the complaints themselves. Please contact me with any questions about this request, or any of the complaints we have filed with you.

Sincerely,

Duff Conacher, Coordinator
On behalf of the Board of Directors of Democracy Watch