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News Release

Today, House Committee must ask federal Commissioner of Lobbying Karen Shepherd 30 questions about Lobbying Act and Code loopholes, and her very weak disclosure and enforcement record

Commissioner has worse disclosure record than disgraced former Integrity Commissioner, and equally bad enforcement record

Wednesday, March 23, 2011

OTTAWA - Today, Democracy Watch released the letter (en français) it sent Monday to the House Access, Privacy and Ethics Committee setting out 30 accountability questions they must ask federal Commissioner of Lobbying Karen Shepherd today concerning her very weak disclosure and enforcement record over the past three years, and the many loopholes in the federal Lobbying Act and Code.  Commissioner Shepherd is testifying before the Committee today from 3:30 to 4:30 pm as the Committee begins its mandatory five-year review of the Act.

"If the House Committee members fail to ask Lobbying Commissioner Shepherd the thirty questions, they will continue to let her off the hook for a worse disclosure record, and equally bad enforcement record, as the former disgraced Integrity Commissioner, and they will continue to hide the huge loopholes in the federal lobbying disclosure law," said Duff Conacher, Coordinator of Democracy Watch and Chairperson of the nation-wide Government Ethics Coalition 
(To see details about the loopholes, click here).

Half of the 30 questions are aimed at having Commissioner Shepherd finally disclose publicly, and in detail, what she has done with at least 100 cases of alleged violations of either or both the Lobbying Act or Lobbyists' Code of Conduct that Democracy Watch estimates she has become aware of since she became Commissioner in 2008.  Almost half (43) of the cases are more than three years old, and were inherited by Commissioner Shepherd from former Registrar of Lobbyists Michael Nelson (including five complaints filed by Democracy Watch between 2001 and 2004).

Commissioner Shepherd has released only three public rulings in the past three years (finally, in mid-February, one ruling about two lobbyists involved in the September 2009 Lisa Raitt fundraising event, the other about a lobbyist who failed to register in 2004, and just last week another ruling on Democracy Watch's complaint filed in October 2009, a ruling that concluded that a fundraising event held by Conservative MP Rick Dykstra in 2009 did not violate Rule 8 of the Lobbyists' Code). 

In testimony before a House committee in December 2010, Commissioner Shepherd 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).

The other half of the 30 questions are about the huge loopholes in the Lobbying Act, and problems with interpretations and applications of the Act's and Code's measures by Commissioner Shepherd that have created other huge loopholes.

It is not true, as many media outlets have reported in covering the Bruce Carson scandal, that the Lobbying Act prohibits former political staffers from lobbying government for five years after leaving office.

The Act only prohibits former political staffers from being a registered lobbyist for five years.  Because of three huge loopholes in the Act, it is legal to lobby without registering (if you are not paid to lobby, lobby only about the enforcement and/or administration of laws, or lobby for a business less than 20 per cent of your work time).

Because it is legal to lobby without registering, it is actually legal for any federal cabinet minister, ministerial staff or adviser, Cabinet appointee or senior government official to leave their job and lobby the federal government (in secret, without registering) the next day.

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, and sent a 12-page letter to Commissioner Shepherd and the Auditor General on February 22, 2011 setting out details and rulings Democracy Watch believes Commissioner Shepherd has been legally required to disclose publicly in the past three years in order to properly perform her duties as an Officer of Parliament.

"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 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

To see details about former Public Sector Integrity Commissioner Christiane Ouimet's poor enforcement record, click here

Democracy Watch's Government Ethics Campaign

Democracy Watch's Money in Politics Campaign

Democracy Watch homepage

Commissioner of Lobbying Karen Shepherd's weak enforcement record
(NOTE: Democracy Watch urged the Oliphant Commission to recommend strengthening the Commissioner's enforcement in its May 2010 report)

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 Democracy Watch's February 23, 2011 news release, and 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 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.

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Changes needed to ensure transparent and ethical federal government lobbying and to ensure the Commissioner of Lobbying enforces rules effectively
(To see details, click here)
(NOTE: Democracy Watch urged the Oliphant Commission to recommend all of the following changes in its May 2010 report)
  • close the loophole that currently allows corporations to hide the number of people involved in lobbying activities (employees of corporations who lobby less than 20% of their work time are not required to be listed in the corporation's lobbying registration);
  • require lobbyists to disclose their past work with any Canadian or foreign government, political party or candidate;
  • require lobbyists to disclose all their government relations activities (whether paid or volunteer and on no matter what issue (NOTE: currently unpaid lobbyists are not required to disclose, nor lobbyists who lobby about the enforcement of laws) involving gathering inside information or trying to influence policy-makers (as in the U.S.) -- or require all government decision-makers to disclose all their contacts with anyone trying to influence them (as the Conservatives promised they would in the 2006 federal election);
  • require lobbyists to disclose the amount they spend on lobbying campaigns (as in 33 U.S. states);
  • the search page for Lobbyist Registry must be changed to allow for searches by any data field in the registry (currently, the database can only be searched by the name and client(s) or organization of the lobbyist, the department being lobbied and the subject matter, and the lobbying time period);
  • prohibit lobbyists from working for government departments or serving in senior positions for political parties or candidates for public office (as in New Mexico and Maryland), and from having business connections with anyone who does;
  • close the loophole MPs added to their MPs Code in May 2009 that allows lobbyists to provide unlimited volunteer services of any kind in secret to any MP without any conflict of interest being created, and make the MPs Code a law;
  • ban all senior politicians, staff, appointees and senior government officials from lobbying (paid or unpaid) for five years for anyone they had dealings with during their last five years in office (currently former senior politicians and only full-time government officials only have to sit out for one to two years), and ban all junior politicians, staff appointees and officials from doing the same for one to three years depending on their decision-making power;
  • anyone participating in the "employment exchange program" (who are mainly people from large corporations) must be covered by the five-year ban on senior public office holders becoming lobbyists;
  • ban lobbyists from becoming members of Cabinet for at least four years after they are elected as a federal politician;
  • the Commissioner of Lobbying must be required to conduct random audits of everyone covered by the Lobbying Act and the Lobbyists' Code of Conduct;
  • prohibit the Commissioner from giving secret advice;
  • ensure that the Commissioner must investigate and rule publicly on all complaints (including anonymous complaints) and empower the Commissioner to investigate and rule on complaints even if the police are investigating the lobbyist for a violation of another law at the same time;
  • require the Commissioner to disclose the identity of rule-breakers (although Democracy Watch's position is that she is legally required to disclose this information in her annual report), and empower the Commissioner to penalize rule-breakers, even for violations of the Lobbyists' Code;
  • ensure all Commissioner decisions can be reviewed by the courts;
  • give opposition party leaders a veto over the appointment of the Commissioner of Lobbying;
  • the Commissioner of Lobbying must be required to submit public, bi-annual reports to a parliamentary committee that include details about the wrongdoing alleged in each complaint; the date each complaint is received; when each investigation began and finished; when the Commissioner received the investigation report; when the Commissioner/courts ruled and ruling details; how many people formally trained/informed by the Commissioner's Office; number of information requests received by subject and other core operational information;
  • have Parliament (as opposed to Cabinet) approve the Commissioner's annual budget (as is currently the process for the Ethics Commissioner);
  • as with the Conflict of Interest and Ethics Commissioner position, any person nominated and chosen to be the Commissioner of Lobbying must be required to have legal experience enforcing ethics rules or laws to ensure proper enforcement of the Lobbying Act and the Lobbyists' Code of Conduct, and;
  • make the Lobbyists' Code a law.
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