Democracy Watch Files Complaint About Martin Conflict Of Interest

"Democracy Watch believes that a lobbyist that donates large amounts of money to a politician puts the politician in a conflict of interest in violation of federal ethics rules for lobbyists and politicians," said Duff Conacher, Coordinator of Democracy Watch. On July 11, 2002 under guidelines introduced by Prime Minister Chrétien on June 11th, Cabinet ministers Sheila Copps, John Manley and Allan Rock disclosed donations they had received to their Liberal party leadership campaign funds. At the time, the Ethics Counsellor stated publicly that he had required each of the ministers to return some donations because the source and size of the donation created a conflict for the minister. Wilson stated that each minister had been required to return less than $50,000 total, and that donations of $5,000 or more caused conflicts of interest. Wilson did not disclose the identities of the donors. Democracy Watch believes that the lobbyists involved violated Rule 8 of the Lobbyists' Code of Conduct, which states that "Lobbyists shall not place public office holders in a conflict of interest by proposing or undertaking any action that would constitute an improper influence on a public office holder". Democracy Watch filed a complaint about the donations, and the Ethics Counsellor's ruled that the donations do not violate Rule 8. Democracy Watch is challenging the Ethics Counsellor's ruling in Federal Court. Democracy Watch is now filing a similar complaint about donations which have been disclosed since July 2002. Paul Martin received donations or services of $5,000 or more from more than 600 corporations and corporate law firms. Of these, 60 corporations or corporate law firms are registered to lobby the federal government, and 30 of the 60 donated or gave services worth $25,000 or more (Total that 60 donated - $2.05 million; Total value of services - $499,287). Among the registered lobbyists are such corporations as: Imperial Tobacco Canada Ltd., Westcoast Energy, CanWest Global, Magna International, Bombardier (Aerospace), Hollinger Canadian, BCE Inc., Alliance Atlantis, Canada's Research-Based Pharmaceutical Companies, Inco, Brascan, United Parcel Service (UPS) Canada Ltd., Canadian National, Talisman Energy Inc., ING, and Telus Corporation (Please see full list in attached letter, and please note that the Ethics Counsellor's webpage listing the Martin donations is so poorly maintained that Democracy Watch believes that many donations are listed twice or more, as the total of donations listed for Martin adds up to more than $18.2 million, $6 million more than Martin himself claimed as his donations total). As a result, Democracy Watch believes that Martin is currently in a conflict of interest when participating in any discussions or decisions concerning tobacco, energy, media, transportation, telecommunications, health care and pharmaceuticals, environmental, postal, banking and corporate responsibility issues. In addition, Martin accepted more than $65,000 of in-kind services from the Earnscliffe Strategy Group. As a result, Democracy Watch believes Martin is in a conflict of interest when participating in any discussions or decisions concerning any of the subjects for which Earnscliffe lobbyists are registered to lobby the federal government. As well, Paul Martin accepted donations and in-kind services from several law firms. As a result, Democracy Watch believes that Martin is currently in a conflict of interest when participating in any discussions or decisions concerning legal services contracted out by the federal government, and concerning any interests represented by these law firms. "Democracy Watch believes Prime Minister Paul Martin is in a conflict of interest on tobacco, energy, media, transportation, telecommunications, health care and pharmaceuticals, environmental, postal, banking and corporate responsibility issues," said Duff Conacher, Coordinator of Democracy Watch. "Martin's multiple conflicts of interest raise the serious question of whether he can uphold the public interest in any of these areas, and whether Martin can even remain as prime minister." John Manley received donations of $5,000 or more from 19 corporations, corporate lobbyists and corporate law firms, including Canadian National Railway, Bombardier Inc., Research in Motion, Alliance Atlantis, Torys LLP, Davies Ward Phillips & Vineberg LLP, and the Capital Hill Group lobbying firm. Sheila Copps received donations or services of $5,000 or more from 8 corporations and corporate law firms, including Telus, Magna International, Bombardier, Alliance Atlantis, McCain Foods Ltd. and Borden Ladner Gervais LLP. The Ethics Counsellor, in his legal position as enforcer of the Lobbyists' Code, is required by the Lobbyists Registration Act to investigate if there is a reasonable belief that there has been a violation of the Lobbyists' Code, and to file a public ruling in Parliament. Democracy Watch is filing the complaint with federal Ethics Counsellor Howard Wilson despite the fact that it believes that Wilson is biased in his legal position as enforcer of the Lobbyists' Code of Conduct because Wilson also holds the separate legal position of compliance officer for the Public Office Holders Code (a position completely controlled by the Prime Minister). Democracy Watch filed an application in Federal Court last December challenging a past ruling of the Ethics Counsellor and the legality of Wilson holding both positions. The case is proceeding through the Federal Court. Among its rules, the Conflict of Interest and Post-Employment Code for Public Office Holders (the Public Office Holders Code) requires public office holders to "arrange their private affairs in a manner that will prevent real, potential or apparent conflicts of interest from arising . . ." (Part I, sub-section 3(1)) and to "take care to avoid being placed or the appearance of being placed under an obligation to any person or organization . . ." (Part II, subsection 23(1)). Parliament extended the principles upon which these rules are based to political donations when it passed Bill C-24 in June 2003. Bill C-24 prohibits donations to parties and candidates of more than $1,000 from corporations and other organizations, and of more than $5,000 from individuals. In addition, Canadian courts have clearly established that decision-makers such as politicians cannot be in even apparent conflicts of interest. As a result of these rules, Democracy Watch believes that federal politicians cannot accept donations or services worth $5,000 or more from anyone who lobbies the federal government (especially donations from lobbyists who lobby a minister's department). "If Paul Martin wants to govern with integrity he should clear the air concerning these conflicts of interest, and what federal ethics rules for politicians and lobbyists permit and prohibit, by immediately referring these complaints to the Supreme Court of Canada for a ruling," said Duff Conacher, Coordinator of Democracy Watch. - 30 - FOR MORE INFORMATION, CONTACT: Duff Conacher, Coordinator of Democracy Watch Tel: (613) 241-5179 Webpage of links to lists of donations to Liberal Party leadership candidates - http://strategis.ic.gc.ca/epic/internet/inoec-bce.nsf/vwGeneratedInterE/h_oe01264e.html Democracy Watch's Government Ethics Campaign - http://www.dwatch.ca/ethicdir.html ******************** Duff Conacher, Coordinator Democracy Watch P.O. Box 821, Stn. B Ottawa, Ontario K1P 5P9 Tel: (613) 241-5179 Fax: (613) 241-4758 Email: dwatch@web.net Internet: http://www.dwatch.ca