Stan Marshall? Not at this cost!

Oh come on media - where are you?

After such a big miss on the energy monolith - one might expect for the media to be on their toes.

After a complete miss on Muskrat and all the information freely provided by citizens was ignored - the damning truth was forced on them and all of us.

In comes Stan Marshall - instant messiah treatment oozed out of dull swords of ink painfully reminiscent of the coming of Danny Williams.

Stan Marshall's appointment was swift with few details. One available was Marshall would accept the same as Ed Martin but with no severance option.

Time went by and no contract.

Then the contract appeared to be stalled in negotiation.

Marshall won. We lost.

His employment is in complete conflict.

There are no excuses - no spinning - no exceptions that make this okay.

The media has disappeared. The media will not take Marshall on the same way they avoided Williams.

Martin's contract dealt with Conflict of Interest. Here is the clause:

3 (c) The Executive shall not acquire, directly or indirectly, an interest in any firm, partnership, association, entity or corporation, the business or operations of which would in any manner, directly or indirectly, compete or conflict with the business of operations of Nalcor and without limiting the generality of the foregoing, neither the Executive nor any family member (this term having the same meaning as defined in Newfoundland and Labrador's Conflict of Interest Act, 1995 shall directly hold any shares in the Fortis Inc. group of companies including Newfoundland Power excepting however interests acquired in a publicly traded corporation through retirement mutual fund(s) investment vehicles.

Marshall's contract deals with Conflict of Interest. Here is the clause:

4 (a) The Executive shall not acquire or hold, directly or indirectly, an interest in any firm, partnership, association, entity or corporation, the business of operations of which would in any manner, directly or indirectly, compete or conflict with the business or operations of Nalcor, NLH or a company considered to be a subsidiary of Nalcor in accordance with Section 13 of the Energy Corporation Act, with the exception to the foregoing being that the Executive may own 5% or less of the shares of a publicly traded company;

Here's the deal - Marshall is allowed to be in a potential conflict of interest. This defies all logic and pith and the purpose of same.

Unfortunately but understandably Marshall nor his family want to be interfered with as that relates to personal financial affairs. Unfortunately this means Mr. Marshall does not qualify to sit as the head of our Crown Corporation.

When a government starts making exceptions to Conflict of Interest guidelines, laws, and intent we are already on the wrong side of right.

We have experienced too much of this. We need change.

Marshall - despite his professional qualifications - has decided not to relinquish his other interests - same for his family - some of which conflict.

Marshall should resign or should be replaced.

In our desperation to replace Martin - we must not be forced to forego conflict of interest protection - regardless the candidate. 

Tomorrow we delve into this contract and terms further.

Investigative Journalism needed following O'Brien affair

People need to know - and our real democracy needs the answers.

The Kevin O'Brien - Breakfast with Tiffany's Only - fiasco is the tip of the iceberg.

Right now every journalist worth their salt will dig in and find out how widespread this behavior is.

Every municipal councillor, every mayor, all Chambers of Commerce members and all volunteers in community organizations should be given an opportunity by our media to have a confidential conversation with them.They should use their journalists right to keep sources confidential and give us - the public - an overview of how vindictive this government really is.

We need to know if Cabinet members are abusing their authority and using inappropriate influence for political gain. We need to understand how much pressure community leaders are put under and whether they believe their community would suffer by actually losing support for infrastructure, employment programs, or development.

We also need to know if business owners or individuals have been coerced in the same fashion.

While the O'Brien story is sensational and headline grabbing - it has greater legs than what we've seen.

I - as one citizen and consumer of news in Newfoundland and Labrador - wants to know if this government should be investigated further and real action be taken.

Danny Willams - Alderon - Muskrat Falls

What's your opinion?

Code of Business Conduct and Ethics - Alderon 

Below please find a section under: Third Party Relationships - Conflict of Interest
 
Conflicts of interest arise where an individual’s position or responsibilities with the Company present an opportunity for personal gain apart from the normal rewards of employment, officership ordirectorship, to the detriment of the Company. They also arise where an individual’s personal interests are inconsistent with those of the Company and create conflicting loyalties. Such conflicting loyalties can cause an employee, director, officer or consultant to give preference to personal interests in situations where corporate responsibilities should come first. Employees, officers, directors and consultants of the Company shall perform the responsibilities of their positions on the basis of what is in the best interests of the Company and free from the influence of personal considerations and relationships. (emphasis added)

Quote by Danny Williams to Board of Trade - Reported by CBC Newfoundland and Labrador

"I most certainly would not jeopardize years of working for this province or my own personal reputation for the sake of Muskrat Falls or a mining company"

2011 Annual Report Alderon

Section: Management's Discussion and Analysis of Financial Condition and Results of Operations

Alderon depends on a single mineral project.

The Kami Property accounts for all of Alderon's mineral resources and exclusively represents the current potential for the future generation of revenue. The costs, timing and complexities of upgrading the mineralized material at the Kami Property to proven and probable reserves may be greater than Alderon anticipates. Mineral exploration and development involves a high degree of risk that even a combination of careful evaluation, experience and knowledge cannot eliminate and few properties that are explored are ultimately developed into producing mines. Any adverse development affecting the Kami Property will have a material adverse effect on our business, prospects, financial position, results of operations and cash flows The successful start of mining operations at, and the development of, the Kami Property into a commercially viable mine cannot be assured.

Alderon needs to enter into contracts with external service and utility providers.

Mining, processing, development and exploration activities depend, to one degree or another, on adequate infrastructure. In order to develop a mine at the Kami Property, we will need to negotiate and conclude various agreements with external service and utility providers for rail transportation, power and port access, and these are important determinants that affect capital and operating costs. The inability to conclude any such agreements could have a material adverse effect on the Company’s financial position, results of operations and cash flows and render the development of a mine on the Kami Property unviable.
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Danny Williams sits on the Board of Directors Alderon

Was Paul Oram in a Conflict of Interest when Trying to Buy Businesses while Minister?

Yesterday Paul Oram, Former Minister of Business and Health decided he would weigh in on the pharmacy issue.

Important questions for Mr. Oram

1. When he was negotiating to buy pharmacies was he the Minister of Business or the Minister of Health?
2. Would he be in conflict when serving as either Minister while at the same time using the knowledge he has in those portfolios and applying that directly to business acquisitions?
3. When Mr. Oram says he would buy pharmacies then or now - what price is he talking about?
4. When Mr. Oram says the pharmacies would have to "adjust their businesses" what does he mean? Is he saying that services would have to be cut for seniors? Would there be mass layoffs? Would the hours and accessibility change?
5. Oram says not "every" rural pharmacy would close - what one's does he believe will close?
6. Did Mr. Oram divulge financial information to his colleagues in government that was attained confidentially? 

Mr. Oram remains a voice-box for government and where Minister Tom Marshall silenced all MHA's on the issue publicly (like a dictator) - the government is now going to send out ex-MHA's and ex-Ministers.

Below is the transcript from VOCM's Open-Line

PAUL ORAM: Yeah, the comments on the pharmacists, talking about pharmacies and so on. You know, we looked at buying a couple of pharmacies a few years ago. I can tell you that, you know, the negotiations stopped because the owners decided not to sell. And it was two independent pharmacies. And I can tell you right now that if the pharmacists and if anybody wants to sell me pharmacies today, I'm open for business. I'll buy them. I mean these pharmacies are making a whole lot of money. The generic drug business is making a whole lot of money. And yes, the margins may be cut a bit. Like everybody we have to adjust our businesses every day for different things to change our margins. But the reality is, these pharmacies are still worth a lot of money.

RANDY SIMMS: So you don't accept the argument from these independent pharmacists that in actual fact the loss of these professional fees or pharmaceutical rebates will mean the demise of their business. You don't believe that.

PAUL ORAM: Absolutely not. They may have to adjust their business somehow to make it work more properly or make it work differently. I mean the reality is that this is a law that's put forth in Canada. These rebates have been coming in and I think government turned a blind eye to it for years. That's the reality. But at the end of the day, they're making a whole lot of money. And should they make money? Yes, they should. I think everybody should make money, you know, and the more they make the better. But you know, the province has an opportunity here to save some money and save a lot of money, by the way. So we have to look at every possible way to save money. I mean this is not the demise of every small pharmacy in rural Newfoundland and Labrador, in Newfoundland and Labrador in general. I mean this is just, this is going to have to be an adjustment that's made by the pharmacies to ensure that they keep their business viable. And I believe these businesses are very viable and I heard some comments --

RANDY SIMMS: And you, Paul Oram, businessman, you're ready to buy a couple if they're willing to sell them.

PAUL ORAM: I want them. Ask them to give me a call. I'll buy them right now.

RANDY SIMMS: I got to end on that note, Paul.

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.