Wednesday, February 23, 2011

OTTAWA - Today, Democracy Watch released the letter it sent yesterday to federal Commissioner of Lobbying Karen Shepherd concerning her very weak disclosure and enforcement record over the past three years.

The 12-page letter reviews in detail her two annual reports and many committee appearances, and while it is very difficult to determine exactly because of vague and conflicting reports and testimony, it seems that Commissioner Shepherd has not disclosed details about what she has done with at least 100 cases of alleged violations of either or both the Lobbying Act or Lobbyists' Code of Conduct (almost half of which are more than three years old, and including six complaints filed by Democracy Watch -- five between 2001 and 2004, and one (the Rick Dykstra complaint) in October 2009).

As well, Commissioner Shepherd has released only two public rulings in the past three years (finally, just last week, one ruling about two lobbyists involved in the September 2009 Lisa Raitt fundraising event).  In testimony before a House committee in December 2010, she revealed that she had, with still secret rulings, let at least 16 lobbyists off the hook even though she had clear evidence that they had violated either the Act or Code (and she has not released any of the rulings nor disclosed the identity of any of the 16 lobbyists).

Democracy Watch is calling on Commissioner Shepherd to release within 30 days details of all complaints received, and reviews and investigations undertaken, and referrals to the RCMP and rulings made, since 2005, and to release all details of future cases and rulings in her future annual reports, and at least twice each year to a parliamentary committee.

Democracy Watch is also calling on the Auditor General to conduct a performance audit of the Commissioner of Lobbying office similar to that completed for the now disgraced former Public Sector Integrity Commissioner's office.

Commissioner Shepherd's annual reports provide less information about number of complaints received, and how each case was addressed, than the reports of former Integrity Commissioner.  And like the Integrity Commissioner, Commissioner Shepherd has failed to issue public rulings in dozens of cases, and seems to have let many lobbyists off the hook for violations.

"In Democracy Watch's opinion, the federal Commissioner of Lobbying must be audited by the Auditor General because her disclosure record is weaker, and her enforcement record is as weak, as the record of the disgraced former Public Sector Integrity Commissioner," said Duff Conacher, Coordinator of Democracy Watch and Chairperson of the nation-wide Government Ethics Coalition.  "Combined with huge loopholes in the law left open by the so-called Accountability Act, and the fact that the RCMP and Crown prosecutors have failed to charge or prosecute anyone for violating the lobbying law in the past 22 years, it is clear that the federal lobbying law and ethics enforcement system is an ongoing joke." (To see details about the loopholes, click here)

Commissioner Shepherd's annual reports are also less clear than the reports of her predecessor Registrar of Lobbyists Michael Nelson as he included summaries of cases, and details concerning number of cases dealt with each fiscal year (although his reports lack clarity in some ways as well).

It is clear from Registrar Nelson's last annual report for fiscal year 2007-2008 that he passed on to Commissioner Shepherd a total of 36 administrative reviews, six investigations and one case referred to the RCMP and Crown prosecutors (43 cases in total).

It seems from Commissioner Shepherd's reports and testimony up to the end of 2010 that she has undertaken at least 43 new reviews and eight investigations, and referred at least six cases to the RCMP and Crown prosecutors (57 cases in total, although again vague reports and testimony make the exact number of cases difficult to determine).

As a result, Commissioner Shepherd seems to have at least 100 cases on file about which details have never been released.

Commissioner Shepherd has been with the lobbying enforcement office since 2004, became acting Commissioner in July 2008, and full Commissioner in 2009.

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FOR MORE INFORMATION, CONTACT:
Duff Conacher, Coordinator of Democracy Watch
Organizer of the CoffeeParty.ca movement
Tel: (613) 241-5179  
dwatch@web.net

Commissioner of Lobbying Karen Shepherd's weak enforcement record

Changes needed to ensure transparent, ethical federal government lobbying and to ensure the Commissioner of Lobbying enforces rules effectively

To see the Commissioner of Lobbyists' 2009-2010 Annual Report, click here, and 2008-2009 Annual Report, click here

To see the Registrar of Lobbyists' 2007-2008 Annual Report, click here, and 2006-2007 Annual Report, click here

Democracy Watch's Government Ethics Campaign

Democracy Watch's Money in Politics Campaign

Democracy Watch's opinion is that Commissioner of Lobbying Karen Shepherd has not been acting properly as an Officer of Parliament, nor has she been effectively enforcing the Lobbying Act (Act) and the Lobbyists' Code of Conduct (Lobbyists' Code), as follows:

• as detailed in the above news release, Commissioner Shepherd's disclosure record of how many complaints she has received, as well as reviews and investigations she has initiated, and her rulings on each situation, is worse than the former disgraced federal Integrity Commissioner;
  
• Commissioner Shepherd does not randomly audit anyone's activities, including former public office holder's activities, to ensure they are complying with the rules she enforces that: require anyone paid to lobby to register and disclose details about their lobbying (sections 5, 7 and 7.1 of the Act); prohibit any registered lobbyist from being paid a contingency (success) fee (section 10.1 of the Act); prohibit former public office holders from being a registered lobbyist for five years after they leave office (section 10.11 of the Act), and; prohibit lobbyists from proposing or doing anything that puts a public office holder in a conflict of interest (Rule 8 of the Lobbyists' Code);
  
• Commissioner Shepherd has taken 1.5 years to rule on a complaint that included all the key facts about fundraising events held in September 2009 by Conservative Parliamentary Secretary Rick Dykstra;
• Commissioner Shepherd has taken more than three years to rule on five past complaints filed by Democracy Watch concerning favours lobbyists have done for past public office holders, and has not even contacted Democracy Watch about the complaints
• Commissioner Shepherd has misled the media, and the public, about loopholes in the Lobbying Act, and;
• Commissioner Shepherd has issued a legally incorrect, and incomplete, guideline on Rule 8 of the Lobbyists' Code of Conduct.