Friday, 16 October 2015

When the Conservatives Began the Comeback

The article below was written by me in 2004.  Still pertinent today.  And this doesn't even begin to cover the Karlheinz Schreiber incident, which is the plum on the top of Mulroney's cake (where he was caught red-handed taking kickbacks in cash from Schreiber, income tax fraud, and still didn't do any time).

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In our most recent federal election, the Liberal Party won a minority government, which made me extremely happy. They've had a majority for a decade, and it's about time we have some forced accountability. However, the official opposition now is the Conservative Party, an amalgam of the Reform Party (whose policy was created by the utterly insane Preston Manning) and the old Progressive Conservative Party. It's no secret that this was an effort to "unite the right", and that the old PCs are the driving force within the party. And that the PCs could manage to get 80+ seats in this election is very disturbing to me. VERY disturbing.

Doesn't anyone remember the last Progressive Conservative government, under Mulroney from 1984 to 1993? EASILY the most corrupt government in North American history, possibly in the history of the western world? Well, since Canadian voters have a terrible memory, I thought it would be worthwhile to remind everyone about that government. And remember that it was only a decade ago, and many of the principle characters are still the same.

Joe Clark won a minority government for the Tories in 1979, and I personally always felt Joe was a good man. But he tried to pass a budget that included a 16 cent per gallon increase in gas tax (insane to try with a minority) the ensuing loss of confidence motion allowed Trudeau's Liberals back into power. Then in 1983 Clark was defeated in a very close party leadership race with Brian Mulroney, who then took over the PC leadership. Mulroney was a Montreal lawyer who since 1977 had been the president of the Iron Ore Company of Canada. He was well-to-do but far from rich, and he was the infusion of new blood the Conservatives felt they needed.

In the next federal election in 1984, Mulroney and his party ran a great campaign. Everywhere you looked you saw Mulroney, and he was always trashing the Liberal Party with great effectiveness. There were a few factors that led to the Liberals crushing defeat in that election; the slickness of the PC campaign, the recent retirement of Trudeau, the selection of John Turner to replace him (Turner was neither a good leader or a tremendous intellect) and the “patronage” issues of Trudeau's government. Mulroney's Conservatives steamrolled to the largest majority government in Canadian history. They won 211 of 282 seats in the House of Commons, showing the Canadian people were ready for a change after 16 years of Liberal leadership (with only that brief 9 month interruption by Joe Clark).

The corruption of the Mulroney era was about to begin.

The primary issue Mulroney campaigned on in 1984 was patronage. Trudeau had made a habit of appointing primarily Liberals and Liberal sympathizers to government positions during his tenure, at a rate of almost 80%. Mulroney promised to change this situation, and end patronage altogether. Canadians loved to hear this, but Mulroney made it clear from his his earliest days in office that it was a bald-faced lie. The nickname "Lyin' Brian" was born, and would never go away. Within 6 weeks of being elected, Mulroney fired almost 500 federal government lawyers across the country and replaced them with members of the PC party. Anyone who was even suspected of being a Liberal sympathizer was removed. Six weeks later, Mulroney fired 11 members of the board of directors of PetroCan and replaced them all with prominent Tories. Within another couple of months he had fired and replaced ALL port authority chairmen and 13 of 15 of the Air Canada board of directors. The carnage was almost beyond belief. In his first six months in office, Mulroney had made NINE HUNDRED new appointments, almost universally to PC sympathizers. When questioned about this in the press, Mulroney always pointed to the TWO non-partisan appointments he had made.

Two of nine-hundred.

And the end of 1988 he'd also appointed 112 new federal judges. All Tories.

Other appointments included making his best buddies highly paid counsel to him. He made Bernard Roy his principle secretary (Roy was Mulroney's law school chum and had been the best man at his wedding). His university buddy Fred Doucet became his policy advisor. Neither Roy or Doucet had ever had any government experience.

Mulroney's cabinet had an unheard of 40 positions (Trudeau's' biggest caucus had been 26). He also appointed a chief of staff to each department (when only two departments actually needed one). In effect, he doubled he cost of his cabinet with these moves, and offered Canadians no explanation. Then he made Guy Charbonneau the Speaker of the Senate. Charbonneau had been his fundraising strategist. He also appointed 3 new board members to Security Intelligence Review Committee (all former colleagues) who had no intelligence experience whatsoever.

But Brian promised to end patronage, right? Right.

Other blatantly partisan appointments included Justice Minister John Crosby's two sons as legal agents in St. Johns, Finance Minister Michael Wilson's cousin receiving a multi-million dollar finance contract and External Affair Minister Joe Clark's brother being named lead council for the Calgary Olympics. A former Mulroney law client, Jaques Blanchard, was appointed to the board of directors of Air Canada in 1985, and then given a federal judgeship in 1986. Another law colleague, Jean Sirois, was appointed chairman of Telefilm Canada, despite having zero experience in the field.

Mulroney cost Canadian taxpayers millions of dollars relocating a planned federal prison to his own home riding. His government gave a $1.3 billion maintenance contract to Canadair rather than Bristol Aerospace despite a significantly higher bid. Please keep in mind that Canadair is based in Quebec, while Bristol is based in Winnipeg (the western province where Tory support was weakest). By 1987 the RCMP was investigating the federal bidding processes because of the number of contracts and leases not going to the lowest bidder – going instead to bidders that had a vested interest in Mulroney or the Conservative party.

One of my favorite Mulroney moves was when the government paid Dalhousie university $100,000 so that they would give Deputy Prime Minister Don Mazenkowski an honorary law degree (Maz had never even gone to college). If you were a good Conservative, Mulroney made sure you got something for your partisanship.

But if Patronage was all Mulroney had done that was suspect, I would be inclined to not worry about it, and pass it off as the Tories finally getting some of their own after 16 years of being on the outside looking in. But the corruption went much deeper. And started even earlier.

During the 1983 Leadership Convention where Mulroney won the PC party leadership from Joe Clark, all 12 candidates had agreed prior to the campaign that they would make their campaign finances public. Eleven of the twelve did. Guess who didn't? Mulroney's campaign cost twice as much as anyone else's and was much more high profile. To encourage the candidates to keep everything on the up-and-up, the PC party gave $30 000 grants to each candidate who made their finances public. Mulroney was the only one that didn't receive this payout - obviously he was covering up far more than $30K in additional money. A few years later the former president of the PC party said on a CBC show (Question Period) that it was very obvious that Mulroney was receiving offshore campaign contributions. So Lyin' Brian's campaign money went unexplained.

But now I am getting to the kickback schemes and conflict of interest concerns, the corruption for which the Mulroney Government truly made itself legendary.

In 1985, a landholder named Andre Hamel sued the government because he had paid a $50 000 kickback the the PCs so the government would rent his building for the offices of the Employment and Immigration department. The government had taken the bribe, then failed to some through on the agreement. Hamel showed how he had been billed the $50K through Mulroney's old law office, Oglivy Renault.

Shortly thereafter The Globe and Mail broke the story that the Tory government had given a $2 million a year government advertising contract to two Toronto men (Roger Nantel and Peter Simpson) who had little advertising experience, but who were PC party members. Nantel told the paper that he'd been forced (as a part of the deal) to kick back a part of his fee to the Conservative Party to secure the contract.

In December 1988 a Tory MP named Michel Gravel pled guilty to receiving $97,000 in bribes and kickbacks for government contracts. He had somehow gotten his hands on a copy of the government's Lease Book, with all 5000 government office leases. He contacted many of them and extorted money from them to ensure the lease renewals. Initially he pled Not Guilty, but in order to prevent the publicity of a trial, the PC party arranged a "no jail time" plea bargain for him..... and then paid all of his legal bills out of their operating budget. Nothing to hide here, right Tories?

Another Tory MP, Richard Grise, won a $250,000 grant to build a community center in his riding. He got the contractor, the air-conditioning installer, plumber, electricians, and other suppliers to kick back money to him to work on the project. He also skimmed tens of thousands of dollars from his $165,000 annual Member of Parliament office budget through false receipts (which all came to light when one of his employees blew the whistle on him). Once all of this came out in the press, Grise resigned his membership in the PC party, but not his seat in the House of Commons. He stayed on as an independent, but stopped going to Ottawa at all for House operations. He still collected his salary and office expense fee (over $200k/year) for another full year before being fined $20,000 with no jail time. And the employee that blew the whistle was murdered and their house burned down three days after blowing the whistle. Now I'm not suggesting the party did it...... but it is certainly interesting.

Yet another Tory MP, Andre Bisonette, somehow found out that a Swiss Arms manufacturer was relocating to Canada, and that they had looked closely at only one parcel of land. Bissonette bought that land immediately, then sold it to the arms manufacturer 11 days later for a profit of $2.1 million. No conflict of interest charges were brought by the government, despite the obvious infraction.

Industry Minister Sinclair Stevens appointed Trevor Eyton to the board of the Canada Development Investment Corporation. In itself, not a big deal. But ONE week later, Eyton refinanced all of Stevens's personal holdings in the York Center. These guys didn't even try to cover their tracks. Yet no charges were brought and the appointment was not overturned. So Stevens figured he had free reign, and he appointed 2 brokerage houses as advisors to the Canada Development Investment Corporation at the very same time the York Center was soliciting their financial help. Even writing this I am shaking my head at how bloody BLATANT this all was, yet nobody did anything to stop it.

During Mulroney's first mandate, EIGHT of his cabinet ministers (CABINET MINSTERS) were forced to resign over kickback scandals or conflict of interest issues. One of the good ones, Environment Minister Suzanne Blais-Grenier, went to Mulroney in September 1987 and told him the kickback schemes were massive and embarrassing to the party. Mulroney did nothing, so four months later she went to the newspapers with the story. She gave the names of four Montreal area businessmen and their recent complaints about forced kickbacks as evidence. Mulroney's reward for her courage and determination to stop corruption was to boot her out of the caucus, and steadfastly refuse to answer in the press for any of the allegations. What a douchebag.

Around the same time, it went public that you could actually purchase a dinner at 24 Sussex Drive, along with the PM and any number of cabinet ministers. All it took was a large contribution to either Mulroney, or the PC Canada Fund. Those taking advantage of this were almost entirely super-rich businessmen. It came out later that the PC Canada Fund had issued a document in 1986 recommending that canvassing for money should be limited to, "....chartered and other banks, insurance companies, trust companies, CA firms, lobbyist firms, major oil companies, automobile manufacturers, the most wealthy Canadians, breweries, transportation, steel companies, mining and resources, pulp and paper and major American Corporations." That is a direct quote from the document. So these folks make major contributions, come to dinner and rub elbows with the senior members of the federal government, and what do they expect in return?

If I have to tell you, I have a bridge in Brooklyn for sale that I'll let you have real cheap.....

…..they were looking for their zoning issues to go away. They were looking for favorable rulings in court or findings by government commissions. They were looking for the government to scratch their back, and everyone knew it. The first type of business the document recommends going after for contributions is banks. Does anyone recall a little issue regarding the Canadian Commercial Bank around this time? They were major lenders but in order to maintain growth rates had begun to lend to very unsafe borrowers. By the time Lyin' Brian decided the bank could use a little help, they were over $500 million in the red. The PC government ended up spending over $1 billion Canadian tax dollars to try to bail this little venture out, and then the bank ended up folding anyway.

Did any of the board members of this independent and privately held bank ever have dinner with Brian in his Sussex Drive home? I'll give you three guesses and the first two don't count..... Such is the nature of the Canadian Progressive Conservative party, and always has been.

Need more proof that these guys were stinking with corruption? In 1987 another one of Mulroney's cabinet ministers, Stewart McInnes, was found to have actively managed his own stock portfolio..... despite being business partners with a member of the Canadian Council Investment Committee. The CCIC managed a $160 million dollar endowment fund and any financial move they made always radically affected market prices due of the sheer size of their purchases. McInnes would buy into everything the fund was about to buy into, and then would and sell just before they sold.

When they found out about it, the PC Party was so incensed that they spent hundreds of thousands of dollars to find out who leaked the information to the media. Eventually they brought down a Scotia McLeod director for the leak. This director was able to eventually prove that he'd had nothing to do with it, but the PCs had accomplished their mission, which was to get McInnes off page 1. Not only did McInnes serve no time for insider trading, he was never even charged.

Then how about Tory Senator Jean Bazim, who had billed Ottawa over $750 000 in legal fees through his own law firm, despite never doing any work for them? When this came out he didn't even try to fight it - within two hours of the press making it public he had resigned his Senate seat and left the parliament buildings. No charges brought. No repayment ever made.

And did anyone notice when Mulroney's personal investment councilor was banned for life by the Toronto Stock Exchange for insider trading? I did. Nobody seemed to care that Mulroney's personal holdings were being managed by a crook....

My personal favorite is the saga of Roch LaSalle and Frank Majeau. LaSalle was a Conservative MP, and Majeau was his business partner. Now stay with me here.....

Under Joe Clark's 1979 minority government, LaSalle was a defense cabinet minister. He arranged for tenders for a $5.5 billion defense contract to purchase 138 fighter jets. The two companies that it came down to were General Dynamics for their CF-16 and MacDonnell Douglas for their CF-18s. LaSalle's partner Majeau approached MacDonnell Douglas and told their senior executives that for a kickback of $10 million, he would use his influence to ensure they received the contract. MacDonnell Douglas approached the FBI who along with the RCMP tried to entrap Majeau, but he caught on and managed to escape with nothing bruised except his reputation. He then went into the strip club business in Toronto with Real Simard, a known Montreal hitman responsible for at LEAST four mob-related hits. Simard worked in Montreal for the Cotroni family, and the two began running cocaine from Montreal to Toronto on the traveling strippers. The RCMP has a photo of Majeau and Simard in a phone booth with Hamilton mob boss Johnny Papalia and the phone records show they were calling Cotroni in Montreal. Within a couple of months two hoods tried to horn in on the coke supplying business in Toronto and Simard killed them in their hotel by shooting both execution style. Unfortunately for him, one survived and fingered him to the cops.

After all this Mulroney still supported LaSalle's 1984 candidacy, even throwing a $20,000 fundraiser for his campaign (LaSalle was still Majeau's partner at the time, unbelievable as that may seem). After being elected to the house in 1984, Frank Majeau was named to the Harborfront Committee with a government-paid salary, and was also named policy advisor to LaSalle. McLean's magazine did an expose on this guy, and also showed that when Mulroney appointed him to Harborfront that he had already failed the standard RCMP security screening. When this came out, Majeau was fired. He sued the government for wrongful dismissal and McLean's for libel. McLeans won their part of the case, but the government settled with Majeau, offering him a six figure payout. For being a crook.

Now how about Mulroney's personal freedom in pissing away tax dollars to his own delight? In six months in 1985 and 86, Mulroney spent $811,000 for trips to New York, Washington and Paris. The Paris trip alone cost over half a million dollars. Many of his 52 person entourage stayed in $3400/day suites, spent $109 000 on chauffeured cars, bought 50 high cost ballet tickets, and Mulroney's wife Mila personally spent $9000 in the hotel's boutique. When this became public, the PC Canada Fund tried to cover many of the bills, but it was obvious that Mulroney expected Canadians to pay for everything.

In May 1986 Mulroney and his cronies went to Hong Kong, which cost over a million dollars, and cost and additional $300K for a video crew filming the government mission (which was simply diplomatic). Among the people Mulroney took along at the taxpayer's expense were his personal butler and maid. They stayed in their own luxury suites as well as everyone else. At one other point, Mulroney and crew went to Japan for 11 days. Cost to the taxpayers? $1.1 million. On top of that, daily expenses for the group were $76,000. After the trip was over, Mulroney submitted vouchers to be reimbursed for $26,000 he had spent himself on the trip and that he claimed was for government business-related activities. $26K. In 11 days. Lynch this man please.

In 1987 Mulroney went to California for ONE day for a speech. Cost to the taxpayer? $95,000.

And what of the previously mentioned Senate Speaker Guy Charbonneau? Well, his oldest business partner was an architectural firm called LaValle Engineering. In 1987 LaValle was awarded a $250 million contract to develop new computer software for the Canadian government. The other software companies that had bid for the contract were stunned. LaValle is an engineering company – and had never done any software development whatsoever. After a couple of years of aborted efforts, they failed to provide a system that could work for more than a few seconds before crapping out. A quarter billion tax dollars down the drain.

Now we've seen what happens when the Tries are paying out (free money for supporters), but what of when they're selling? Let's look at the Falconridge radar base in Sudbury, for example. When the base was shut down, the 290 hectare plot of land was valued at $5.2 million. The federal Tory government sold it to PC party member Henry Shepherd for $140K. He sold it a few months later for almost 4 million dollars. The Moisee radar base in Quebec was very similar, also on a 290 hectare plot. It was valued at the time the government sold it at $6 million (much of it is right on the Moisie river). It was sold to a former Tory MP candidate (Guy Lefebvre) for $187,500.

Need more corruption? You got it! Mulroney personally worked very hard to secure both a $9 million grant and a $85 million federal loan for Curragh Resources, a Toronto based mining company. Mulroney was friendly with their board members. There was fierce opposition to these financial moves because of concerns of the mine's safety. In 1992 it exploded and then collapsed, killing 26 men.

Jon Stewart, Mulroney's senior advisor on appointments (who was also on the board of the ACOA, which awards government grants and loans) was tried in 1994 for having $500K of unexplained cash in the bank, and also for filing false tax returns when he was a member of Mulroney's government. In 1987 when he claimed an income of $23,000, the auditors found it was actually $125,000, in 1988 he claimed $41K on an actual income of $244K, and in 1989 he claimed $21K on an actual income of $243K. All of this money was from kickbacks for grants and loans, and it landed from offshore accounts. Stewart was simply too stupid to hide it once he had his hands on it. A senior Tory. A senior asshole.

In his 1984 campaign, Mulroney's campaign chairman was a fellow named Norm Atkins. He eventually started a company called Camp Associates Advertising. Most of the largest government advertising contracts then went to one company. Can you guess which one? I bet you can.

In 1992 Mulroney appointed George Vari to the Security Intelligence Review Committee. Vari was Mulroney's oldest personal friend and a man he described as being a second father to him. Good qualifications for the job – he had no other background in the intelligence arena.

Mulroney often told the press he wasn't looking for a free ride, and that he bought his own groceries for his home. In fact he did write checks for $4000 every six months to defray grocery costs. That is $8K per year (for a family of 6), or $171 a week. In his final year as PM, Mulroney's official bills for food and alcohol at his residence were $153,000, all but $8k at taxpayers expense. Lyin' Brian strikes again. On top of that, for his home on Sussex drive (himself, his wife and their four children), Mulroney decided they required a full-time staff of 12 people, with annual salaries of over $340K. Guess he didn't want Mila to have to iron anything......

Notice how I've stayed completely away from Mulroney's policies? I'm just focusing on the corruption around his governement. But Mulroney, whose party was at a 7% approval rating in 1987, managed to get re-elected to another Majority (165 seats this time) in 1988 on the strength of the free trade deal with the USA. His campaign was massive, INCREDIBLY expensive, and funded almost entirely by corporations that desperately wanted the free trade deal to go through. They managed to convince the majority of Canadians that free trade would be beneficial, because for some reason Canadians believe what they read. There were two-page gate-fold ads in every national newspaper almost daily telling how great free trade was going to be. I was one of many who didn't fall for it, and told anyone who'd listen that it would destroy factory work in Canada. Once he was re-elected and the deal sealed, within 6 months 400,000 high-paying blue-collar jobs went south to the states, never to return. Factory employment is virtually non-existent in Canada now, and blue collar employment has never come close to fully rebounding. Since not everyone is good in school, this basically screws 10% of the population for life, no matter how badly they want to work. It plunged the nation into economic chaos for nearly a decade, and only now is the total number of jobs exceeding what there was at the time of the deal.

Have I said I hate Mulroney? Man, do I ever. But that he is still alive is proof positive that no Canadian politician will ever be assassinated. If anyone ever begged for it, it was Lyin' Brian.

In 1988 in preparation for the upcoming federal election, the riding of Hull-Aylmer invited all local party members to elect their candidate for the election. 72 people showed up and cast ballots. 79 ballots were cast. Think about that for a second. The PCs even screw their own party!

Remember Bais-Grenier? The cabinet minister that told Mulroney that the kickback schemes were huge and embarrassing, and Mulroney rewarded her by kicking her out of the caucus? She testified in a 1991 hearing that the PC party routinely demanded 5% of all lease values of grant/loan totals as kickbacks. This was to be paid through accounts in Luxembourg to wash the money for the party. Much of it, she testified, went into a "retirement fund" for Mulroney. These hearings resulted in 13 Mulroney associates being charged with conspiracy to commit fraud. Their lawyers (paid for from the PC Canada Fund) blinded the courts under such a blizzard of paper that it was determined the trials would be too costly to even hold. All charges were dropped. Gotta love this country.

Mulroney announced in late 1992 that he would be retiring soon. And he really kept himself busy for that last 6 months. His wife's best friend received an 5 year appointment to the Citizenship Court of Canada. Her only work experience had been as a secretary. Another Mila Mulroney buddy, Pat McCaffrey, was appointed to the Official Residences Council and her husband named to the Immigration and Refugee Board. Mulroney's notary Harvey Corn was given a position on the Canada Pension Committee, and Jean Dugre (who started the "Friends Of Brian" fundraising committee) was appointed to the Federal Parole Board. Mulroney's primary personal campaign fundraiser since 1976, Jaques Courtois, was named to the Security Intelligence Review Committee (along with Brian's 'second Dad', George Vari). Between December 1992 (when Brian announced he'd be retiring) and January 1993, Mulroney made 178 appointments to the Privy Council office (all to Tory party members). Don Guthrie, a PC Canada Fund board member, was named to the board of the Canadian National Railway. In December 1992 Mulroney's riding received a $120 million aluminum smelter grant, a $3 million grant for an environmental center and a $1.5 million grant for a new performing arts center.

On his last day in office, Mulroney appointed 4 new senators (even the PC party said this really should have been done after the upcoming election). In his final 60 days in office, he made 241 appointments, and in his final 6 months made a whopping 655 appointments.

FOUR of those 655 appointments went to non-Tories.

Mulroney then went on a world 'farewell tour' that cost Canadian taxpayers $600,000.

And what of Brian after he left office? Well, despite never earning more than $200K a year in his life (either as president of Iron ore or as PM), he and his wife bought a $1.7 million dollar home in Montreal, and spent over half a million dollars renovating it. Property taxes are $25,000 a year, and with a son attending Duke, a daughter attending Harvard and two kids in lavish private schools, his children's educations were costing him no less that $100K a year. Of course, the incoming PC prime minister (who was decimated in the massive defeat of the fall elections that year) had already appointed Brian to the ULTIMATE plum, on the board of Horsham Corporation, where he received 250,000 stocks (worth about $2 million) for signing on.

The parting shot he took at Canadians is unbelievable even for Brian. While Mulroney's new home was being renovated, Mulroney stored all of his furnishings at taxpayer's expense (as usual). Cost? $100K. When they moved into Sussex Drive, their personal appointments and furnishings were valued at $98K, but when they moved out there was 20,000 pounds of furnishings requiring four full-sized moving trucks (this according to the movers themselves). But the real kicker was when he submitted an invoice to the government for $150K for the furnishings they left behind. The government had it valued, and found it to be worth less than $20,000. They told Mulroney they weren't going to pay, and that he should come and get the furniture since it was so valuable to him. He didn't. It was (mostly) thrown away. But Brian showed he was leaving office in the same manner he entered it and how he conducted himself while he was there: he acted like tax dollars were his, and that all he had to do was try to some up with a way to get his grimy little sleazy hands on them.

Many of the principle characters of the Conservative Party are still the same. Yet in the last election (a month ago) they won 80 seats. Canadians, these guys are flat out crooks. Not all, but a large percentage. It's only been a decade, and they have not changed . Their new leader, Stephen Harper, is open with his admiration for Mulroney, and Lyin' Brian is considered a major senior spokesperson for the new party.

Do us all a favor. Vote Liberal. Vote NDP. Vote for the Bloc Quebeqois. Vote for the Green Party. Vote for the Family Coalition Party. Vote for the Libertarian Party. Vote for the for-God's-sake Rhino Party. But for your sake, my sake, and the sake of all Canadians, DO NOT VOTE FOR THE CONSERVATIVES. Ten years of screwing us was enough.