Is this a Pork Barrel?

A pork barrel,The term is commonly used as a political metaphor for the appropriation of government spending for projects that are intended primarily to benefit particular constituents or campaign contributors.


Let's look at the situation in its very basic form.

According to government - they wanted to own strands on a fibre optic network.

According to Dean MacDonald a consortium of Persona - MTS Allstream - and Rogers wanted to build a second fibre optic infrastructure in the province.

Aliant currently operates one fibre optic facility.

If government wants to own strands - then issue a Request for Proposals outlining specifically what government wants - for how long - including what additional services and maintenance may be required.

No - not here - not in Newfoundland and Labrador - the place of Kings - where our piece of geography is essentially owned and controlled by various families.

There is no consortium! There is an owner of the new fibre-optic infrastructure (Persona) and clients purchasing/renting/leasing strands.

It was pointed out originally by government that the consortium of MTS Allstream - Rogers - and Persona required government investment. It was later learned - that was based on a consultant's (Electronic Warfare Associates - Canada Ltd.) report which stated in part:

"Persona has declined to disclose its financial statements for the reason that they are privately held company and that they are involved in many other projects in other parts of the country which are not of concern to this project."

I guess Bragg Communications had no problem having a look before they agreed to buy them right?

This is it in a nutshell - Dean MacDonald wanted Persona to build and own a fibre optic network in Newfoundland and Labrador. He found two parties who would buy/rent/lease strands from the new infrastructure - he then wanted the government to invest 15 million in the deal - thereby gaining another client for the strands and additional value for Persona. That does not include the maintenance management fee and risk for catastrophic failure + renegotiated positions in 20 years.

Dean asked his buddy's government for the investment and got it. Now Persona is being sold having just reached the legal deal with government for the initial investment and other services. Dean will gain personally from his buddy's government investment.

The government should not have travelled this route and should have issued an RFP. There is more than a potential conflict here - there is an ethical conflict.

Dean MacDonald having brokered the deal with his buddy's government - is now involved in the sale of that same company to a wholly owned subsidiary of Bragg Communications in Nova Scotia.

The best part is - they only just signed the legal papers - yet the network is almost built. The Auditor General is "reviewing" the deal - but the legal papers are signed.

Regardless of the advantages Williams or Taylor espouse regarding cost savings - there was no reason for an RFP not to be issued - and there is no proof that an RFP would not have netted a better deal.

We were clearly told that all parties who could be in this "consortium" were. First of all it is not a consortium - secondly - the entirety of Persona is being sold to Bragg Communications - why couldn't they be involved in the so-called original consortium.

This was a flipper for MacDonald who had just come off the sale of Cable Atlantic to Rogers - shortly after invested in the purchase of Persona - and is now flipping it in 2007 - with increased value partially paid for by the people of Newfoundland and Labrador.

What a crock - people - what a crock.

We have not seen the complete deal with Persona and there are many serious questions that need to be asked - regarding maintenance and equipment to convert the dark fibres to lit fibres - and the risks associated with catastrophic failure. Also - how much of the network (strands) percentage-wise will we but/rent/lease? Will the complete contract be released?

And Trev is on open-line trying to commend the deal.