Monday, May 12, 2003

OTTAWA - Democracy Watch today reacted to John Manley's disclosure of donations to his leadership campaign, noting that many of the donations place the Deputy Prime Minister in an apparent breach of ethics rules.

"Given the apparent conflicts of interest revealed in the donations to Manley's campaign, it's fair to ask what conflicts are being hidden by Martin and Copps who continue to receive donations in secret," said Aaron Freeman, Board member of Democracy Watch and Chairperson of the nation-wide Money in Politics Coalition.

Several companies making large donations to Manley's campaign are registered to lobby the government on a wide range of issues.  The corporate lobby firm Capital Hill Group, for example, contributed $20,000 in cash and another $30,000 in kind, covering staff salaries.  Other lobby firms on the list include Global Public Affairs ($1,500) and Hill and Knowlton ($1,500), as well as industry lobby associations, such as Canada's Research-Based Pharmaceuticals Companies ($9,000), the Canadian Advanced Technology Alliance ($1,500), the Brewers Association of Canada ($3,000), Railway Association of Canada ($1,500), and Association of Canadian Distillers ($1,500).

Several companies registered to lobby the government, including Bell Canada Enterprises (BCE Inc.), CanWest Media, Canadian National Railway, Telus, Magna International, Davies Ward Phillips & Vineberg, and Torys LLP each contributed $25,000 to his campaign.

Major government contractors, such as Bombardier ($25,000), PriceWaterhouseCoopers ($10,000), Fujitsu Consulting ($1,500) and Veritaaq Technology House ($1,500), also appear on the list.  In addition, the Corel Centre, which would have benefited enormously from hockey subsidies that Manley has repeatedly advocated, gave $1,500.

Both Sheila Copps and Paul Martin continue to give their donors the option of hiding contributions through blind trusts, under rules devised by Ethics Counsellor Howard Wilson that Democracy Watch believes violate the Conflict of Interest and Post-Employment Code for Public Office Holders.  The Code prohibits donations and gifts to ministers not "within the bounds of propriety, a normal expression of courtesy or protocol or . . . hospitality" or donations that would "bring suspicion on the public office holder's objectivity and impartiality" or would "compromise the integrity of the Government" (section 21).  Public disclosure of any donation of $200 or more to a minister is also required (section 22).

The conflicts of interest in the financing of the Liberal leadership race highlight the need for an independent ethics watchdog to meaningfully enforce ethics rules.  Democracy Watch called on Copps and Martin to disclose all of their donations without further delay.  The organization also called on MPs to close the serious loopholes that remain in Bill C-24, the government's proposed political fundraising law.  The bill allows secret donations to MP trust funds, and fails to place spending limits on leadership races.

The 50-group, nation-wide Money in Politics Coalition, coordinated by Democracy Watch, will continue to push the federal government to correct these undemocratic flaws in Bill C-24 before it is passed by Parliament.