Systemic Corruption

Posted on by Pete Cross

Insidiously, it seeps just below the surface,  swirling in and around every level of the Canadian mosaic. Currents of malfeasance, some large, some small, quietly percolating. Lapping endless waves of cronyism, nepotism, parochialism, patronage, influence peddling, graft, and embezzlement. 

In some countries it is prevalent to the point of being part of a daily existence; places where all daily activities take into account the need to pay forward the corruption.  In the other more “privileged” or affluent countries, like Canada, we smugly point at those living in that third world of undeveloped and often corrupted governments as we shake our heads in disbelief at the levels of criminality. 

The problem with corruption, besides the obvious, is that the slow trickle of misconduct eventually begins to erode societal morals and principles. It begins to gnaw at the very bonds of society.  We, as a society, need to believe in the stability and honesty of a government and those that have been appointed to lead.  We hope that there is an inferred sense of fairness in the vital portions of our society. 

Without it, discontent with one’s position in that society begins to fester. Discontent is followed by disbelief—  one begins to question the “system”.  If doubt in the system gains a foothold, this further undermines the structural pins of decency and respect. 

There are some that contend that systemic corruption combined with the gradual extinction of the middle class is the biggest problem currently facing the democracies of the West. There are some that believe that if not addressed it could indeed prove fatal to our current system of government. 

After all the power of corruption is absolute. One only needs to watch the now besieged authoritarian government in Belarus. This corrupt government which has been led for 26 years by the authoritarian Alexander Lukashenko is now in retreat—the streets now teeming with violent protest. 

Lukashenko pronounced an election victory— one that was clearly rigged in his favour —proved to be a final and ultimate straw for the citizens of that country.  His government’s corrupt practises over the years has now launched daily protests of 200,000 people. As many as 7000 have been arrested and detained as he clings to power and calls on his ally Putin to come to his aid.  Europe’s “last dictatorship” is now in rightful peril. 

Clearly there are levels of corruption around the world. 

Tradingeconomics.com actually compiles a “corruption index” of countries. Belarus, surprisingly considering its problems, is only 66 on the list of 180, 1 being the best, and 180 being the worst. (Somalia has the distinction of being the worst and Denmark is listed as being the least corrupt country in the world)  

Canada is number 12 on the list. (We were 9th in 2016) but due to its slight deterioration Canada is now considered a country “to watch” alongside Saudi Arabia and Angola.

On the surface this seems like a good number, but how do we measure corruption in this country? Let’s consider some recent Canadian examples. 

The underground economy in Canada is estimated by Statistics Canada to be about $45 billion— $16 billion in Ontario alone. Current estimates suggest that this “irregular” economy may account from 10-25% of reported Gross Domestic Product, and that this illicit part of the economy is actually now growing faster rate than the GDP. 

In a poll a couple of years ago, a group of Canadian executives found that twenty per cent of these business leaders believed bribery and corruption were “widespread in this country”.

Recently, in British Columbia the Money laundering Inquiry is for the first time officially looking into what most people have known in this Province for a long time; that illicit funds have for many years been continually funnelled into real estate and high end vehicles; millions of dollars using the casinos as an easy conduit.  

Criminologist Stephen Schneider said that “while criminal organizations have traditionally laundered the proceeds of crime as part of their broader operations, separate money service businesses are now facilitating them”. He goes on to describe the Vancouver “model” which centres around “professional money laundering”. He flatly states that British Columbia is simply “an attractive place to do that”.

When describing financial crimes like securities fraud or stock market manipulation Schneider said that Canada “has never been very good at addressing them”. In summing up an overall picture he describes the obvious “low-hanging fruit” which is the street level drug trade;  but the real danger occurs “within commercial crimes that may be committed by corporations and private businesses that appear legitimate”.

Another recent example which is slowly falling from public view is the SNC Lavalin affair. We should remember that this large Canadian once reputable organization pled guilty to fraud for work in Libya and has now agreed to the paying of a $280 million fine. They were caught having paid $127 million in bribes and laundered millions to win contracts in Libya. A large chunk of that money, some $47 million was paid to Saadi Gadhafi, son of the late dictator Moammar Gadhafi.  Suffice to say that this Canadian company was playing with the upper echelon of the world criminal sphere. 

The RCMP in Canada has over many years systematically dropped the proverbial ball in terms of pursuing these “white collar” types. But this lack of effort can not be totally blamed on the police. The prosecution services, the financial regulators and the corporate world are at the very least guilty of astounding willful blindness. 

As an example, in 2008 and in 2014, the Financial Action Task Force, a relatively unknown but influential international standards setting body called out Canada for a “significant set of deficiencies” specifically regarding our ability to determine the “true owners of private corporations”. This is referred to by accountants as “beneficial ownership transparency” and is the key factor in tracking down financial criminal activity and corruption. Our collective blindness once again at fault.

Finding corruption is in fact quite easy. Just follow the money. Pots of money will always draw the flies, those perpetrators and opportunists along with the ethically challenged corporate insiders. 

The criminal hawks are continually circling. Let’s consider the recent CERB cheques in Canada.  They have gone out to 7.8 million individuals. Statistics Canada then quietly noted, that even though 7.8 million people benefitted “only 5 million Canadians -employees and self-employed people–either lost their jobs or began working less than half their normal hours”.  Even with limited mathematical skills one can easily calculate that this  leaves one with a potential of 40% of the claims being fraudulent. With the announcement of no due diligence required, the fraudsters had to be salivating. Sadly, it has become equally clear that many Canadians have no problem in trying to “rip” the system. 

This leads us to the reverberations out of the WE scandal in Ottawa.  This drew in our own Prime Minister, the Minister of Finance and the Chief of staff of the Prime Minister. 

The Finance Minister, whose daughter was working for WE, and the Prime Minister whose wife, mother and brother had all been paid by the WE brothers in some form— apparently didn’t even know enough about business practises to understand the concept of recusing themselves.  Their sense of entitlement blinded them in their own deceit.  

It was also revealed recently that the WE executives referred to Mr. Morneau as a “bestie” in some back and forth emails. This same Minister quickly remembered, while walking to the very Committee hearing, that he “forgot” to pay back $40,000 in expenses for two rather dubious trips. 

At the time of this blog, Mr. Morneau has now been pushed to the curb, but undeterred is applying for the job of the head of the Organization for Economic Cooperation and Development. One has to wonder how that that job application will skirt around a couple of sticky ethics investigations, but pay no mind, because the Prime Minister is going to vouch for him. 

Mr. Trudeau, for his part, in the style of a tin pot dictator has now “prorogued” the Canadian Parliament, stopping all the activities of Parliament until September 21st. An apt parallel would be if you imagined Trump shutting down the Mueller inquiry. 

It effectively shuts down the various Committee investigations that were going on involving WE and the Liberals. 

But what may be the most disturbing to this writer is the lacklustre enthusiasm for pursuing the offenders in this country. What is it about the citizens of this country where there is no outcry against the white collar criminals?  No outrage or demand for accountability. 

This is a country that applauds the Hells Angels on their toy run, turning our heads from viewing their daily practise of extortions, and torture.  Beatings and killings of the innocent and the promulgation of the sex worker industry or the drug trade is ignored, as long as there is a stuffed bear attached to their handle bars. 

There was a massive outcry in the United States, cameras traipsing behind mediocre actress Lori Loughlin who was convicted in a nation wide college entrance exam cheating scandal for her involvement in getting her  “gifted” kids into University. The U.S. and Canadian media coverage was endless. 

While in this country, businessman, philanthropist, BC Sports Hall of Fame and former CFL’r David Sidoo was found guilty in this same scandal of cheating to get his two sons into college in Boston. He paid $200,000  to have a professional test writer use false credentials to impersonate his two sons to write their SAT’s. He even flew the fraud artist in to write one of the high school exams for one of his sons. Has there been massive shaming, has there been any calls for his removal from the Hall of Fame? Crickets. 

Commissioner Lucki, meanwhile remains in seeming isolation,  effectively distancing herself from the Coronavirus and any investigation involving the Liberals.  One should not expect anything to come out of the Ottawa RCMP corridors in terms of any investigations of wrong doing while under her oversight.

Remember when Ms. Lucki was asked about the investigation of obstruction involving the Prime Minister and the SNC Lavalin controversy? She replied that the RCMP “takes all investigations seriously, and investigate to the fullest”. That was in September 2019.  

Ms. Lucki is proving herself to be a plodding one trick pony. Diversity is clearly her one and only issue. It will also likely prove to be her swan song.

So what does the future hold. Well, the only thing for sure is that Canada on the afore mentioned corruption index is likely to slip further down the ratings. 

Canadians are now becoming a bit closer to Belarus than to Denmark. 

Photo courtesy of Christopher Dombres via Flickr Commons – Some Rights Reserved

Loved and Defunded…

Posted on by Pete Cross

My news intake has admittedly been reduced to an almost ignorant level. A few snippets in the morning and then nothing else for the rest of the day. A prescription for a blissful day and for the most part unabashedly content in that ignorance. No t.v., no Twitter, no Facebook, no radio intruding on rational thought. The world, or at the least the world of large capitalized headlines, temporarily pushed aside. 

Yet, the continuous carousel of causes swirls around and around, constantly exposing us, albeit inadvertently, to the special interest punch lines. The catch lines are designed to instil a reaction of fear or outrage. In turn the politicians continuously seek public affirmation. Constantly chumming the waters for us to bite and be hooked.

 Frustratingly— you once again find yourself having fallen into their trap. 

The bellowing cry to “Defund the Police” is one that has garnered the herd following, and like almost all of the ideas born by protestor insemination it seems to lack any real substance. There is no specifics on how this would work or any articulated policy flowing from this fragile concept. Of course this does not deter the politicos. Form and function is irrelevant.

In New York City, which commands the largest city police force in North America, the city counsel just “defunded” the police to the tune of a $1 billion. N.Y of course, is an enclave of democratic power, so it is not much of a surprise that they have reacted with knee-jerk reflexes and near sightedness. The polar fringes reacted with those on the left saying that it was “not enough” while on the other end of the spectrum, usually portrayed as “red necks” saying it was “too much”.

Nevertheless, this fashionable debate forces one to ponder what started this process, this lack of confidence in policing? How did the police manage to ostracize so many? Did we help to create this?  Is it wrong to look inward when things go awry? Should we just assume that all who level  criticism at the police are by definition fools?

How did we get here and how do the police get out? After all the police practise and policies during the last number of years has been driven by the  need to be “liked. Is it possible that the police in their attempts to be everything to everyone has completely backfired?

Managers of the various police outlets all adapted and were co-opted to the theory that the way to improve policing was to be accommodating, to be all encompassing to special interest groups. The new school of management preached in public administration that government bodies needed to be more imbued within “the social fabric”. All the problems that that would entail could be surmounted by an understanding police department. This was the birth of the politics of “inclusion”.

It’s explains how when the police hear the recent cries of “systemic” racism that it all seems so ludicrous. The police can not relate to these allegations. They have been living through this “new”age when the RCMP and other police forces have been extolling the virtue of the police being all good, all present, and all connected. 

Police departments sought out affirmation and were being directed to the goal of being loved by everyone; to be one with all members of society, no matter where you appeared on the economic or political spectrum, we wanted to see through your eyes. The police began hugging everyone in their immediate vicinity, crying when deemed appropriate by those that demanded empathy and conceded the need for retribution for all of the historic real or even perceived “wrongs”.

If you want the gay movement to like the police, march in their parades.  

 If you want children to like you, let them climb around your cars and hit the siren button. (That was learned that from the fire departments actually)

 If you want to relate to teenagers, put officers in the schools where they can be one of them; play basketball with them, or dance with them at school fund raisers. After all, officers dancing in the streets to some neighbourhood rap has become one of the favoured youtube draws. It plays.

Recently, a video showed a female officer in full uniform going down a “slip and slide” became a viral video; clearly aimed to garner love and “likes.  The police have been feeling the need to demonstrate to all that they are in fact humans too; we feel, we rejoice, we are sad. Or so was the theory.

This love and acceptance would lead us into a better policed world and therefore a better society, a “just society” to intone former Prime Minister Pierre Elliot Trudeau. They wanted to grow beards or wear tattoos as it would show that we were just like them. We would be “cool”.

The events of the past few weeks has proven that this theory which was to drive the police to a utopian acceptance –was entirely wrong. 

In the love/hate relationship with the media the pendulum has also been swinging with abandon. Modern thinking was that if you want the press to like you, then answer all and every question. Be at their constant disposal. Twitter out events as fast as you can— god forbid that the press didn’t have the latest police sound bite. In this quest the police have issued tweets that were about events before the police even got to the scene.

It is this incessant need to accommodate that led to the questions as to where was the Amber Alert in Nova Scotia? They want the press to love them, to come to some understanding of how hard they work, to not misunderstand them. They are doing good work, so how can you possibly write bad stories about us.   

This too clearly is not working. That damnable ungrateful press has now turned on them.

This overall theory founded on the need to be “liked” is clearly and universally flawed. The counter argument being suggested here is that the police do not in fact need to be liked by everyone and not all the time. 

But, they do need to be “respected”.

The way to gain and achieve that respect is to be seen as being objective, fair; both in their investigations and in their decisions. A police force should never be seen as being on one side of an issue no matter what the issue. The police can not be “political” and survive in a society made up of disparate and diverse groups.

It is impossible for the police to be seen as independent, fair, or objective if they are seen as being influenced by their political masters or favouring one political entity over another. They are there to enforce the laws, not to influence or pander to variations or interpretation and enforcement of those laws.

In all areas of policing, the police having been enamoured with inclusion and affirmative action politics have by necessity become political on multiple levels. The once arms length approach to the role of government and the political executive arms has disappeared.

In the RCMP Ms. Lucki and her mandarins have proven conclusively that they are under the direction of the current government. One does not have to look any further than the recent flip flops over “systemic racism”. But, there are numerous examples, some far more damaging in their outcomes. 

Does anyone believe that the RCMP will investigate with any fervour the corruption that is implicit in the recent awarding of almost $1 billion to the WE organization and its connection to the Trudeaus. Does anyone believe that any corruption on the part of the Indigenous would ever be investigated? Does anyone believe that SNC-Lavalin was investigated without prejudice?

The general population of Canada, watches and sees this clear political influence being exerted on an almost daily level on the police. They roll their collective eyes and shake their collective heads. The confidence of the public is wavering in the ability of the RCMP to conduct any investigation, not just the ones that require some level of sensitivity. 

So, if they want to defund the police, lets throw them some bones. Let’s defund the sections that are solely aimed at being “liked” and instead reinforce the investigative mandate.

Let’s get rid of all community policing officers and let’s get rid of all school liaison officers. Give that money over to the hiring of another school counsellor or some other community program. Let’s shut down those child safety programs, like the bike rodeos, or the pretend officer training programs. Let’s get rid of any program that are echoes of social work. Let’s get rid of the Safety Bear. 

Let’s get rid of all those media relations officers and all their respective units, including the “strategic” media units. From now on, officers on a case of particular importance can issue a one page press release if there is a need.  (Believe it or not this was easily done in the past). Let’s get rid of the Twitter and Facebook feeds. We should not be part of the social media universe with all its frantic and frenzied radicalism on both the right and the left. It’s an internet conversation and therefore those conversations are mostly ridiculous. 

Let’s not react to any 12 second video clip without conducting a full investigation.

Again, remember the public wants confidence in your fairness and your thoroughness. Prove through investigative results your case for the value of objective policing. 

Investigate all in a timely and fair manner.

If undue influence results, then the leaders of those investigative units must step forward and publicly call out any attempt to influence. The police leaders have to re-establish their independence from the legislative and administrative arms.

There is little doubt that this would take tremendous courage, which is admittedly in very short supply in these off-kilter days. The managers need to lead and not just post on Linked-In their leadership skills. There would be some “hills to die on”.

The public would eventually be on their side if that trust could be re-established. 

 Chief Adam Palmer of the VPD recently stepped forward after some hesitation to address systemic policing. It was a dangerous move with the left leaning NDP Mayor of Vancouver watching from a safe political distance. Maybe Chief Palmer was still angry over having his police budget cut by the bike lane loving mayor, but in any event he stepped up. He will likely pay an eventual price, but he did what was right. 

The people just want to have faith in their police force. It is really that simple. It will be difficult and will involve facing numerous hurdles, but it can be done.

The public wants to be assured of the police arrival, confident in the job that will do in a fair and impartial manner, without regard for race or community. The public want the police to be professional and above all else immune to all the faces of favouritism.

We do not need to like them.

Photo courtesy of Carole Raddato via Flickr Commons – Some Rights Reserved