When listening to the radio, watching television or reading the newspapers about events in this province, there seems to be a missing link. One that bridges all that information together and provides a way for people to contribute, express or lobby their concerns in their own time. After-all, this is our home and everyone cannot fit in Lukie's boat and paddle their way to Upper Canada, nor should we!
Since 2006 Sue's Blog has been warning through posts about the disastrous Muskrat Falls project.
Bits and pieces of the Inquiry refer to critics of the project - not being experts.
Let's take that at face value and reflect upon the experts.
Clearly the highly paid experts were wrong in many areas of assessment. Clearly they failed initially to project and overcome engineering and design difficulties regarding the site. Clearly the project is a failure on every measurable level.
Miraculously the non-experts were right in many areas of assessment. Miraculously the non-experts did not miss the peculiarities of the site engineering. Miraculously they were successful in assessing the Muskrat Falls deal was horrific.
Now the other non-experts (politicians) were clearly incapable of understanding what the experts were concluding. They were clearly unable to see the massive flaws in the deal and the engineering. They were clearly non-experts listening to paid experts -most of whom will not likely suffer from this boondoggle.
For what use is an expert - if the person acting on an "experts" advice would not be independently be able to see the potential flaws? What's worse - the politicians refused to listen to critics - ignored or worse subjected the non-experts to terms such as partisans, naysayers, and conspiracy theorists.
There were opportunities to engage the citizenry but they were not afforded.
Citizen groups should have been provided funding throughout the processes from conception to sanction. This funding could have provided the non-expert politicians with real concerns, real hazards, and real findings from the non-expert citizenry.
Further this size of a deal should have gone through a referendum process where - the citizen non-experts were given the opportunity to promote and educate regarding their points of view and real concerns.
You see if the non-expert politicians felt expert enough to make the legislative commitment - they should have allowed the non-expert citizenry a real opportunity to be heard.
None of the politicians did this. No political party did this.
Declining population, increasing efficiencies in housing and appliances, closure of two mills, numerous fish plants, schools, clinics etc are examples of reasonable considerations to determine future power supply requirements.
Muskrat Falls versus the entire Lower Churchill or even Gull Island begged the question why choose Muskrat.
Emera owning ANY part of our domestic distribution system is illogical and not to our benefit. It will increase prices.
Dealing with Emera - a company that could be the subject of a hostile or welcome takeover - particularly when Hydro-Quebec is the touted enemy - and could easily consume Emera minus Nova Scotia Power - was a poor choice.
The critical removal of alternate energy sources into the future was naive at best and corrupt at worst.
The engineering challenges - poorly thought out, considered, or even dealt with was another red flag for a layman.
The power needs of Labrador - routinely and as is usual dismissed including but not limited to plugging an industry of substance into the new supply - another red flag.
The continued interference with the Public Utilities Board - when they are the stop gap for consumers - yet another red flag.
Budgets that were routinely over - became the norm - raising another red flag.
The lack of knowledge of many MHA's regarding the history of the hydro-potentials in Labrador was and continues to be a very disturbing situation.
The obvious angst of indigenous peoples despite the approval by some of their leaders should have been addressed.
This is but a short list of how a citizen could have been and some citizens were very concerned about this failed project.
The decision by Dwight Ball and the Liberal government to push through the remainder of the project without thorough analysis and public input into other options - just continued the madness that is Muskrat.
The Inquiry is a political decision to thwart anger of consumers and taxpayers away from the current government and will do nothing to demonstrate the mess that occurred after they took office.
The EXperts they say? Funny how the naysayers, conspiracy theorists, partisan hacks, and all other names given to critics of the project - were miraculously right.
As I write today the folly continues and we are made to look more the fools than we already are.
James McLeod presented a news story on October 7th in the Telegram.
It was headlined "Nalcor audit won’t be done before retirement: AG"
As usual - pose a question - get an answer - print answer. No follow-up, no definitions of terms used, and no independent thought respecting the answer.
I'll get into Auditor General in another post - but for now - let's watch this "journalistic" masterpiece unfold.
The conversation between the two must have wandered into the need for a forensic audit. McLeod reports as follows on that question:
Paddon
was cautious when talking about a potential forensic audit for Muskrat
Falls. He said he knows it wouldn’t be cheap though.
“I’m not quite sure that the word ‘forensic audit’ is
appropriate. I mean, I think really what people are looking for is for
somebody to go in and look at, perhaps, the decision-making process and
the execution process, and those sorts of things,” he said.
“It would take a lot of time and a lot of resources. The outcome? I have no idea what the outcome would be.”
IN MY OPINION HERE IS WHAT SHOULD HAVE BEEN ASKED AND ANSWERED:
1. Paddon was cautious but did say it wouldn't be cheap though. Question: what's cheap? why are you cautious?
2. Paddon was not quite sure that the word 'forensic audit' is appropriate.
Question: why is it not appropriate? what part of a forensic audit would be inappropriate?
3. Paddon believes he knows what critics are calling for - decision making and execution process Question: how does that fall out of the purview of a forensic audit? Why do you believe "people" are only looking at those components?
4. Paddon believes it would take a lot of time and a lot of resources. Questions: How much time would this forensic audit need? How much would it cost. Cost relative to what? What might be the cost of NOT doing it?
5. Paddon has no idea what the outcome would be. Question: is that perhaps why people want one done? Is the reason you can't speculate on the outcome because you do not know what perimeters would be set?
and of course: Based on the doubling of the costs, hidden documents, continued extension on time-table for completion, independent contractors information hidden from shareholder. Don't these things present a red-flag to an accountant?
AFTER THIS MCLEOD SHOULD HAVE SOUGHT ANOTHER ACCOUNTING SOURCE AND ASKED THE SAME QUESTIONS.
Now let's do a bit of research ourselves and see if a forensic audit is exactly what we are asking for and know that we need.
Forensic auditing is a specialization within the field of accounting, and forensic auditors often provide expert testimony during trial proceedings. Most large accounting firms have a forensic auditing department.
The audit covers a wide range of investigative activities performed by accountants. The process may also include serving as an expert witness in a fraud trial.
The investigation process follows a similar path as a regular audit of financial statements. The steps can include planning, review and a report. If the investigation was undertaken to discover the presence of fraud, evidence is presented to uncover or disprove the fraud and determine the amount of the damages suffered. The findings are presented to the client — and possibly the court should the case go that far.
During the planning stage, the forensic auditing team establishes
objectives, such as identifying if fraud has been committed, how long it
has been going on, the parties involved, quantifying the financial loss
and providing fraud prevention measures. While gathering evidence, the
team collects evidence in the proper manner in order for it to be used
in a court case. There are various techniques used to gather evidence. A
report is produced for the client with the findings. Lastly, those
involved in the forensic audit may be asked to present their findings to
the court.
Forensic audits uncover several types of fraud. The most common involves
theft, including cash, inventory and fraudulent payments. Another type
of fraud is corruption, such as a conflict of interest, bribery and
extortion. The last major category is financial statement fraud. This
relates to misstatements of the financials of a company.
There are many other sites - but this should suffice to ensure that what we are asking for is exactly what we want and need.
This blog has already posted the RED FLAGS post on the need for a forensic audit.
McLeod should have put to a few known critics - the responses of the Auditor General and get another take on it.
This - let me find a source who has a title and a designation - and I can write a news piece is flawed and can lead to the readership relying too much value on the information presented.
This is the spin of spin and is yet another artificial deterrent to completing a forensic audit and attempting to curtail increased calls for a forensic audit.
It seems to me there are many people who just want this whole sordid mess to disappear. Unfortunately for them - social media is alive and growing.
Russell Wangersky should know better. He likes to wax poetic. He likes to believe that his columns are of intellectual value. His current column titled: 22 words with a very big bite is not intellectual but is naively romantic.
This is yet another example of Telegram employees giving a pass to politicians regarding Muskrat.
Since Dwight Ball orated - to an elite corporate community - that his government will conduct a public inquiry on the boondoggle - Telegram employees have been joining in an attempt to calm the seas of public dissent. When I say joining - I don't mean collaborating - I mean they are buying the government spin.
His piece begins with the sentence: "The single dirtiest trick played on electrical customers in this province hasn’t hit home yet. But it will."
Wangersky's assumption that the Muskrat disaster is a dirty trick played on consumers is downplaying the obvious gross negligence, the continued and often deliberate obfuscation, the real engineering concerns, the failure of equipment before the project is even finished, the doubling of the budget, the unending changes to project completion dates, and the number of red flags that demand a forensic audit. It also negates the real possibility of criminal negligence, fraud, and bribery.
When the World Bank blacklisted SNC Lavalin and its subsidiaries in 2013 from "bidding on its global projects under its fraud and corruption policy" - while Wangersky proclaims "..dirtiest trick.." - is irresponsible.
Muskrat Falls stinks to the high heavens - it must be stopped. How do we know that documents are not being shredded as we speak?
There remains a number of executives at Nalcor who have been there since sanctioning. How is this even possible? How is it possible that we paid a king's ransom for Ed Martin?
So when Wangersky describes this fiasco as a dirty trick - he brings to mind events like fooling a candidates supporters into showing up at the wrong location. This is not a dirty trick.
The most offensive and irresponsible part of this column is his concluding thought: "It’s water over the dam. The money’s gone anyway. The best thing we can
do is to learn from the mistake, allow for independent oversight and not
step in a pile of crap like this again."
I can only conclude that this intelligent and thinking human being must be bored with Muskrat, be suffering writers block, or simply and inexplicably buying the Tobinesque spin delivered by Dwight Ball.
Learn from this mistake? How? By suffering bankruptcy? It's water over the dam? How does Russell know what we would be responsible for if illegal activities were found during a forensic audit? How does Russell know that the assets could not be used for another deal? He doesn't know.
The Upper Churchill is a fiasco because of the contractual and economic contracts. The Upper Churchill is significantly successful in it's construction. It was on time and on budget. It stands as one of the best hydro facilities in the world.
So here's what we learned. What we did right in development of the Upper Churchill - on time and on budget - we completely reversed for Muskrat Falls. The stinging and gross minimal return for Newfoundland and Labrador on the Upper Churchill - we repeat for Muskrat.
If you went back 20 years and said we are going to repeat the mistakes of Churchill Falls - politicians would have been politically lynched.
Now that the main stream media in Newfoundland and Labrador have been exposed for their unquestioning support of Danny Williams Muskrat fiasco - the line is "water over the dam"?
Let's watch the same media as they spin the lines of the current failed administration. Watch as they play dirty tricks and marginalize the critics of this continued boondoggle. Watch as they contort to explain that giving away Gull Island to Quebec is going to be a good thing.
Telegram employee James McLeod has come out with a challenge - wait no - more than a challenge - an ultimatum "..put up, or shut up".
Yes the "reporter" who appears to have a similar love-hate relationship with Tweeters to that of one Mr. Trump - has determined what our real problem is.
All "serious, credible.." people need to step up and run for political office. They need to give up their "...paycheque, your own reputation, your own comfortable lifestyle" and throw their hat in the ring. If they do not - McLeod demands they be honest and go away out of it.
First of all the "people" James talks about as credible - are as determined by him. They are people who have a paycheck apparently a comfortable one and a "reputation" - supposedly good. There are many of them according to our newspaper sleuth - he's talked to dozens.
Then there is this jewel: "There are other reasons to stay on the sidelines, too: the demands of an
unsympathetic press corps, ..."
1. the demands of an unsympathetic press corps
There was a break in my writing here - my belly was hurting from laughter.
Which definition of unsympathetic is James using?
a) not feeling, showing, or expressing sympathy
Can't be that one. I would suggest that rightly most express sympathy when a politician has a family or life event of tragedy.
b) not showing approval or favor toward an idea or action
Maybe that one - in which case I would say the majority of media have been very sympathetic both of Muskrat Falls and the current fiasco of a Public Inquiry - as the project continues to motor on.
c) not friendly or cooperative; unlikable
Maybe this one - but again the opposite is true. Many of our "reporters" "journalists" "columnists" and "announcers" are very cooperative and friendly to politicians. They have actually fawned over many of them - like Danny, Tom, Danny, the other Brian, Danny.
The "unsympathetic press corps" he speaks of does not exist in Newfoundland and Labrador.
Well no - that's not true - they are a very unsympathetic press corps to critics of the government - critics of Muskrat Falls. Many of them have tried in every way to marginalize such critics and have used words such as partisans, naysayers, and conspiracy theorists. How nasty....
I can assure Mr. McLeod - that many good private citizens - who have given freely of their time, effort, and intelligence to try and persuade a fawning media and public to beware of things like our current Muskrat boondoggle have risked their reputations, their paycheques, their "comfortable" lives and that of their families. The political parties, their trolls, their indoctrinated, their minions have on many occasions joined with or used the media to disparage "good" people.
He concludes this meandering thought by saying "politics is hard". Hard? Hard how? Hard to go to BBQ's in the rain? Hard to pound your hands in the House of Assembly? Hard to vote ignorantly on legislation? Hard to file for your allowances? Hard to keep up with Twitter or to block people from their Twitter accounts? Hard? Hard to make changes to your own pension plans? Hard to walk the streets once every 4 years? Really James - is that what you call hard? Hard is - an announcement like: I have ordered the shutdown of Muskrat Falls until a forensic audit and a review of project engineering is complete. It is really really easy to say - got to finish it now - cause it's almost done.
If you want to do a journalistic piece - I can recommend several.
1. Research and compare the various proposals to develop the Lower Churchill or any part thereof.
2. Research and compare the various hydro projects completed in Newfoundland and Labrador - their costs, engineering, contracts, the generation and associated transmission.
3. How did Danny Williams and Ed Martin pull the wool over media eyes regarding the many excuses for Muskrat Falls.
4. Do a complete expose of political parties in Newfoundland and Labrador and how they control the pool of MHA's and keep good people out.
5. Investigate and report on the Federal - Provincial Fiscal Arrangements Act and how Quebec has used/uses Hydro to their advantage while our province watches on the sidelines.
I can ascertain from your articles that you know very little about the real history of Hydro and are therefore unable to ask the questions necessary to get information the public needs. This is true of the majority of your colleagues in the "press corps".
I challenge you and your colleagues to research your topic or stop writing.
I believe having a robust, knowledgeable, and fearless media would go a long way to improving the lot of our province. It might help "good" people feel more comfortable about running.
As for "good" people running. The media of Newfoundland and Labrador chased Danny Williams year after year until he ran. He was promoted without test, he was glorified by the media before "past the overpass" had ever laid eyes on him. He was touted by the media - he was put on a pedestal by the media - before he ever ran. I get the feeling you're gearing up to promote another messiah as perhaps leaked to you by the Liberal Party. The media in Newfoundland and Labrador are famous for creating messiahs and the childlike rumour mills for one millionaire after another.
The media has virtually controlled the sound bites,
the desired quotes, and the forum in which "good" people could
communicate. The good news is that Twitter, Blogs, and Facebook make
communication among citizens much more accessible.
Hook line and sinker comes to mind with the flurry of media reporting positively on the announcement of a Public Inquiry into the Muskrat Falls debacle.
Ironically - they too are taken off the hook for the disastrous, corrupt, misleading, inefficient, and incompetent boondoggle.
Most media here in the province acted as a facilitator for all the Muskrat spin of the Tories and now that the "naysayers", "partisans", and "conspiracy theorists" have been proven right - the media - like the politicians just want it to go away.
The media are wearing a bit of this fiasco and it would be very convenient for them - to have those memories fade.
Was Tobin in for the dinner? Did he help out with this media spin farce? After all the 3 amigos are known for this type of thing.
In either case let's take a review. Pam Frampton's article ends with this sentence: "All I can figure is that the 29 per cent who support Davis are the same
misguided lot still waiting for Danny Williams to return as our one true
messiah." This follows Frampton's own headline, "Hallelujah — Muskrat Falls inquiry’s a go".
Handel would be proud.
Frampton could have and should have mused about the venue for the announcement and the audience it was personally delivered to.
The Muskrat frenzy continued in earnest - while chowing down the meal the latest Messiah had prepared for them. For them religion is money - the Messiah is the facilitator of the money - and the Hallelujah is the message that the money will continue.
Frampton stayed away from the obvious - that is - this type of announcement on a situation that has all the potential of bankrupting the province should have been done in a public forum.
Frampton then waded into the latest polls on the politico and marched right up on the pulpit and decreed that 29% of people who support Paul Davis must be the same "misguided" ones who supported Danny Williams.
That is laughable - the "misguided" ones? Is that the percentage who supported Danny Williams - or was there a tremendous number of more "misguided" people at the time? You are making fun of them?
I'd say it's a tad likely that the media were as enthralled with that Messiah as the "misguided" ones you speak of.
Frampton's jubilation regarding the reactionary - too little to late - non-detailed - Tobinesque announcement that happened to be given to an elite Muskrat skinned audience - is naive. It is not an acceptable response of a journalist, a political commentator, or a columnist.
There were so many questions that needed - no begged - to be asked.
1. Why is it too late to stop the project? - details please
2. Why not begin with a forensic audit? - details please
3. How does any of this protect the indigenous people? - details please
4. Why is the Premier using a political fundraiser to announce a Public Inquiry?
5. Why did the Premier change his mind on the timing of the Inquiry? details please
6. What are the plans with Gull Island and Quebec? details please
7. Why are you not stopping the project until Inquiry is complete - considering the continued and serious questions regarding the North Spur - and the potential to uncover corruption or fraudulent activity? details please
and so many more...
The fact that a significant number of Newfoundland and Labrador media fall in the category that Frampton calls "the misguided lot still waiting for Danny Williams to return as our one true
messiah" - albeit more focused on the Galway messiah and Costco's second coming - demonstrates one reason as to why we are in this mess now.
Ball needed an exit, Frampton needed to believe that in some way her much too late need to question the Muskrat boondoggle - played some role in getting an Inquiry called, the Muskrat elite needed reassurance, and the media generally just want the past to go away.
Next up - James McLeod and his call to so-called naysayers, partisans, and conspiracy theorists to prove their love of Newfoundland and Labrador - followed by Wangersky's learn from our mistakes lecture.
Last night was a spectacle to behold. Dwight Ball's Muskrat dinner was something to forget - if we could.
First let me thank some of the media for tweeting the latest Liberal Party function. Last night was a show of support for Dwight Ball by the party - thereby connecting themselves fully to his disastrous performance on the job.
From a media perspective - any journalist who is willing to portray that what the public (used to be naysayers, partisans, and conspiracy theorists) wants is an Inquiry is ignoring the so-called longstanding opposers to the project.
The indigenous people want the project to stop completely and they want specific material on the North Spur.
The longstanding opposers to the project want and are demanding a forensic audit now.
I believe most want the project to stop until an audit is complete so as the people can review all options for Muskrat Falls.
There is a strong belief that there is corruption, incompetence, straight up lies, hidden information, and incomplete data - regarding the project.
VOCM's question of the day - treats the public as if they got what they wanted with the announcement of an Inquiry. Then it encourages the public (based on that false assumption) to say what they want to find out from an Inquiry. Table #8 was Steele Hotels.
Then there is the permanent speaking note for Ball. "It's too late to stop it now". Then couched in - if I could I would tomorrow. Dwight Ball is just lying here. He uses Stan Marshall to back him up - so that he won't be responsible for that decision.
An Inquiry is going to review a project that will destroy us economically. An Inquiry is like reading a postmortem report. This is not what's going to get us out of this fiasco.
Next thing Ball's managers do is craft a little bit of we will get our way out of this through a new relationship with Quebec. In plain language - we are going cap in hand - completely vulnerable - to a savvy hydro giant to seek help. It means we are giving something else away.
Unbelievably but yet so - the amateur drafter of the speech must have been told that Newfoundlanders and Labradorians are so gullible that if we throw in a Donald Trump reference - it will dissuade the discussion of looking at new political options. It must have taken Dwight's administrators some time to get him to understand how he could use the "specter" of "populism".
Finally let's look at the forum used to make such an announcement. Ball did not look to the media for live air-time to talk to the people and present factual data on why the project cannot be stopped or why an Inquiry is better than a forensic audit. He did not use a live appearance to explain why doing a forensic audit now and then being guided by those results to look at options - one being an Inquiry is not the right choice..
So Ball decided - or it was decided for him (he does not make decisions) that a Liberal Party fundraiser was to become a de facto branch of government that can be used when necessary to conduct government business. This is not an issue for the party - it is an issue for the province and her people. This was a disrespectful, idiotic, arrogant and despicable choice of forum.
As $500 a plate meals were served to those thriving off Muskrat - Ball thought he was talking to the people? No he was simply reassuring the corporate elite that despite what the people want - the project would continue and a forensic audit would be avoided right now.
All in all this was a kick in the face to the people of Newfoundland and Labrador - and Ball does not mind being used to do this.
Dwight Ball lied last night. Dwight Ball lies all the time.
After he takes his knocks for this - the Party will present an alternative to his leadership - so they can carry on.
As for Siobhon Coady - her absence from all these "decisions" is an attempt to preserve her for another term.
Why Dwight Ball is doing this? I'd have to really look at who he is indebted to and for what. I can assuredly and confidently tell you he is a liar.
The combined collection of material from those opposed to Muskrat Falls is starting to become a file that ends up on a shelf to collect dust.
There are enough reasons to demand the immediate shut down of the project and the immediate start-up of a forensic audit.
This will not be accomplished through this blog, any other blogs, tweets of discontent, letters to the editor, or calls to a radio program.
The only way to accomplish this is to provide new leadership - now. The coming together of people for a common goal - regardless of their past political stripes or non-stripes.
Being right is not a happy place right now. Many of us were right in our past assessments of Muskrat Falls. It is actually miserable to be right and will remain so until some real change occurs.
Dwight Ball - Danny Williams and the elite making a killing off this project and have thick skin with respect to keeping this "boondoggle" going.
They do not fear repercussion - Danny's already out of politics and Dwight will soon be. The Corporate elite just want to keep taking our money and the money of our kids and grand-kids and great grand kids The debt, the burden, and the mess will remain long after they are deceased from old age - unless we stop it now.
A - alliance of like minded people
C - coordination of action required
T - target the politicians who want to be re-elected
I - imminent understanding that they will be thrown from office at next election
O - onslaught of activities designed to raise awareness and participation
N - network with people from all around Newfoundland and Labrador
I like George Murphy - always have. Right now he is encouraging all of us to write the PUB to protest the Hydro proposed increase. It is an action and it will be felt - however this will not rid us of the burden - it will simply shift the debt from the ratepayer to the taxpayer. We need action to rid us of Muskrat Falls and do what we can to mitigate losses.
So the day of action is here. Who is going to stand up and join with others to provide leadership and a future for Newfoundland and Labrador?
The taxpayers of Newfoundland and Labrador cannot afford the burden of a 30 billion dollar debt. This is what successive governments have done to us - and we are allowing it.
Demand the immediate cessation of Muskrat Falls until a complete forensic audit and financial investigation is complete on the project to date. Then we can look at what alternatives and choices we have. Anything short of that is philosophical discussion that nets us nothing more than an historical record of misery - just like the Upper Churchill.
You know the old saying If you repeat a lie often enough, people will believe it.
We are the proverbial people spoken about.
Lie 1
We need the power
Lie 2
This is the cheapest alternative
Lie 3
We need to get around Quebec
Lie 4
Holyrood will be eliminated
Lie 5
It will cost 7-8 billion dollars
Lie 6
We need it for industry
Lie 7
We will own the transmission line to the Island
Lie 8
Ed Martin quit/retired
and now the biggest whopper of them all
Lie 9
We can't stop Muskrat now
For each and every lie above we had head-bobbing from ignorant MHA's and Ministers, we had a media in report but not research mode, and we had and have leaders who lead us down a garden path.
Each and every one of these lies was repeated, reported, repeated, reported, and repeated and reported.
Each and every one without a modicum of real and unfettered independent investigation.
The first big whopper - "we need the power" was one leader and the last big whopper "we can't stop Muskrat now" from our current leader.
Both of them have tried to back up the statements with "input" from experts. The current expert Stan Marshall - riddled with government exempt conflict - has proclaimed "this is a boondoggle" but "we can't stop it now".
The first part of his statement "this is a boondoggle" is something that should be used in the Captain Obvious Hotels.com commercials. The second part "we can't stop it now" is coming without real proof or true independent review - that should be demanded by the people.
We suspect there has been/is some form of corruption going on. We know for certain incompetence has been abound and continues. We know we were lied to. Any reasonably minded person would say - it is time to stop the boondoggle, forensically audit the boondoggle, review the results publicly, and then look at all options.
Not here though. Lie repeat. Lie repeat. Lie report repeat.
It is unfathomable.
A lie told often enough becomes the truth.
Vladimir Lenin Read more at: https://www.brainyquote.com/quotes/quotes/v/vladimirle132031.html
A lie told often enough becomes the truth.
Vladimir Lenin Read more at: https://www.brainyquote.com/quotes/quotes/v/vladimirle132031.html
This guest feature by PlanetNL certainly has no problem getting our power rates to 30 cents - even while using conservative estimates.
As Sue's blog has pointed out many times - population - is and has been a real problem since the Fisheries Moratorium. That one disaster cost our province at least 100,000 people between the 1992 and now. It was the destruction of a resource fundamental to us being solvent and growing.
The PlanetNL feature has not yet accounted for that part of the problem.
30-35 cent power does not yet include the out-migration - that will absolutely grow exponentially as power becomes unaffordable.It does not yet include the significant numbers of those who will move to fixed income status as our population ages abnormally - without offsetting numbers of babies and youth.
None of the soon-to-be pensioners have a plan that accommodates 4 or 5 times increase in power rates. None of the government administered programs such as CPP or the OAS were designed to deal with this runaway price on an essential such as power.
Any attempt by government to subsidize those on low fixed incomes means that those taxpayers/ratepayers left will be subject to even more expense.
Small to Medium size businesses - not in the industrial sector - will be unable to pay the electric bill without passing it to a consumer who cannot afford to pay it.
I expect the next installment from PlanetNL to contain pretty catastrophic projections for cost of power as the author includes some of these other factors into the equation.
I won't say I look forward to reading it - but I look forward to seeing real data and realistic projections finally coming to the fore. We as a people are closing our collective eyes - holding our breath - as we await the boom about to fall directly on top of us. It is likely to suck all the goodwill, hope, and trust out of us as we try and find a way to save this place from complete devastation.
How do we fix this?
Well as a province that has the 4th largest utility in the country and the second largest underground power station in the world - and possessing first class natural renewable and non-renewable natural resources - we also - unarguably - have had the worst management of those resources.
To fix this - we must stop Muskrat Falls now. We must show the fortitude necessary to withstand corporate leeches who will be up-in-arms that their undeserving gravy train will end. We must conduct a forensic audit and use all the legal tools necessary to rid ourselves of the Emera deal.
Finishing Muskrat and continuing on with this fiasco means we will have to give away our remaining resources - rightfully belonging to our future generations - to simply stay afloat. Pushing this out is not an alternative.
This is going to need read leadership, guts, and tenacity. This is going to require a wholesale change in our thinking and if the current politicians will not do it -They must be told to get out of the way.
Stan Marshall - who has some qualifications for success in the sector (primarily in regulated utilities with reasonable guarantees of profitability) has been of little value here as:
1) he failed to replace some executive in Nalcor,
2) he remains in an otherwise (government exempted) conflict of interest situation with his personal interests in competing entities.
3) he failed to report existing reports in a timely manner
4) he has not demonstrated the extreme due diligence needed right now (does not know enough about independent contractors)
5) he has failed to call for a forensic audit despite the red flags
6) he is not engaged enough to make Nalcor his only and first priority
The entire executive of Nalcor must be replaced and we must name a new Board of Directors. The government must stop Muskrat Falls immediately and bring in forensic auditors. When that is completed - government must review all options and lay them on the table for the people and then utilize a referendum on those choices.
In the coming months we should expect to see government trying to bail itself out with a new potential regarding Gull Island. Do not let them explore touching this asset until we have decided a complete course of action for Muskrat. They will GIVE AWAY another resource if we let them.
This is a time when we need all our people to pull on the same oar and use our brightest minds to seek a solution - not based on 4 year elections and inadequate solutions.
Right now Dwight Ball is not engaging with all such people. He is playing a political game with lots of spin to save his political hide and whatever else he may be engaged in.
The Corporate Muskrat world is working hard to find a suitable replacement for Ball - should he not be able to continue to deliver for them while maintaining the ability to be reelected.
The MHA's in the House of Assembly had better buckle down and demand answers and become at least somewhat educated on hydro-power and our history. As it sits now they are woefully ignorant of the situation we are in and possess no ability to fix it.
Do you want a future for your kids and grand-kids in Newfoundland and Labrador? If so speak now.
Either Newfoundland and Labrador will return to being a wonderful place for all of us to live and raise families in or it will remain a playground for the super-rich to extract more personal wealth from.
Time is not on our side.
When I see the media focus on the Dobbin/Williams racket or the where's Costco game - I acknowledge we are have a tough road ahead and the odds of us surviving are pretty minuscule.
A forensic audit is the process of reviewing a person's or company's
financial statements to determine if they are accurate and lawful.
Forensic audits are used wherever an entity's finances or operations present a legal concern.
Forensic audits are performed by a class of professionals with skill-sets in both criminology and accounting who specialize in following a money
trail, keeping track of fraudulent and actual balance sheets and
checking for inaccuracies in overall and detailed reports of income or
expenditures. If they find discrepancies, it may be the auditor's job to
investigate and determine the reason for it, or it may be the job of a
separate financial investigator.
Red Flags for fraudulent or questionable activity.
Unexplained variances between budgets and actual balances.
Significant internal control issues.
Unusual write-offs or unordinary transactions.
Infrequent or late financial reports and reviews.
(Scapegoating) Where people are given a title but without actual responsibility, it can
effectively cover up what is going on with those who do have
responsibility or power in a situation.
The weakening or elimination of a watchdog (such as PUB) for the Corporation.
Staff whispers and rumors “that all is not right".
Budget for a project escalates on a recurring basis.
Contracting an outside accounting firm to validate specific things but not all things.
A major indicator can be the act of deletion or pressure on staff to
delete, remove or otherwise dump past records or conceal past reports following a senior management change.
Falsified estimates, reports, or projections.
There are any significant conflicts of interest present with senior executive and/or outside contracts/tors. In the case of a Crown Corporation - if any potential conflict of interest is or may be present with an elected official in Government.
Employing any external consultants or contracting firms who have been found guilty of fraud, bribery, or embezzlement in the past.
Any corporation that deliberately withholds information from its shareholders.
Questionable payouts or bonuses to Senior Executive where performance does not match results. (happened with Enron)
Be particularly concerned by any corporation that refuses to do an immediate forensic audit - when several warning signs are present.
In conclusion - I add to all MHA's - ignorance is no excuse when it comes to the law.
Whistle-blowers needed for Muskrat Falls. Send me a message.
There is no cost greater than a human life. This blog does not attempt to trivialize any loss of life resulting from the terrible hurricanes that have hit countries and are about to hit others.
Regarding the financial losses of a Hurricane such as Harvey and Irma currently and like Katrina in 2005 - we can make comparisons to our ongoing Harvey called Muskrat. Although it is man-made - the financial devastation will be similar.
Let's look at it this way. The cost to Texas from Harvey is the same as the cost of Hurricane Muskrat. The difference is we will experience this type of financial disaster year over year for the next 25 years.
Now the big question - who's going to help us?
Let me put this in perspective. There are 29 million people living in Texas and the government has said the disaster could cost $150 billion. That works out to equal $5200 per person.
There are 529,000 people in Newfoundland and Labrador - let's say Muskrat costs $13 billion - this works out to $25,000 per person. When this amount is attributed to ratepayers then the amount could be $68,000 per person.
That's 13 Harvey like equivalencies already.
Now envision this comparable:
The economy of Texas is the second largest in the United States. It has a gross state product of $1.616 trillion (2016),[10] the second largest in the U.S. As of 2015, Texas is home to six of the top 50 companies on the Fortune 500 list and 51 overall (third most after New York and California).[11] In 2012, Texas grossed more than $264.7 billion a year in exports—more than exports of California ($161.9 billion) and New York ($81.4 billion) combined.[12][13][14]
As a sovereign country (2016), Texas would be the 10th largest economy in the world by GDP (ahead of South Korea and Canada).[15] Texas's household income
was $48,259 in 2010 ranking 25th in the nation. The state debt in 2012
was calculated to be $121.7 billion, or $7,400 per taxpayer.[16] Texas has the second largest population in the country after California.
Newfoundland and Labrador has a GDP of $25 Billion and is falling. We are the home of 0 Fortune 500 companies. The economy of Texas is larger than that of Canada - so where would we sit? The unemployment rate in Texas moves between 4-5% while in Newfoundland and Labrador it sits between 14-16%. Texas tops the USA in population growth regularly while Newfoundland and Labrador continues to lose people with projections of losing another 40,000 over the Muskrat decades. On top of the Muskrat billions on the ratepayers backs - we have a provincial debt of about $23,000 per person while Texas shows up at $7400 per person. If we lose another 40,000 people and while increasing the percentage of an aging population - the remaining ratepayers could be up to $82,000 per person and the taxpayers remaining could increase each persons share of provincial debt by another $5000.
Now back to the "big" question - who is going to help us?
In the case of wealthy Texas - who by the way is the leader in medically uninsured people and whose leaders want to eliminate the affordable care act. A state which glorifies the "dog eat dog" far right economic system - is seeking funds and assistance from all over - particularly from socially democratic Canada and all kind and caring people. This might be a donation to the Red Cross or it could be the assistance from disaster relief personal. Insurance will cover another fair chunk of the $180 billion in losses and another chunk will be covered by the federal government.
Texas is able to afford it's own provision of essentials - including state assistance for income, housing, and food. They will however seek to do this through contributions from the private sector, caring individuals, and other states and countries. They will seek to minimize the costs to their own taxpayers. They don't like tax in Texas so they will try to mitigate their own human responsibility.
Meanwhile in Newfoundland and Labrador - we have nobody to help with Muskrat - its all on us. It is a man-made hurricane with no relief in sight - lest we sell off something else cheap - like Gull Island. That then ruins another 2 generations.
I hope that by comparing hurricanes to Muskrat - and by saying we will experience - per-capita - the costs of Hurricane Harvey over and over again like Muskrat (groundhog) Day for the next 25 years - that perhaps a few more people will get the seriousness of our mess.
At the start of the this post - I removed the element of human loss - as experienced by Texas and other hurricanes in the past - I must add that our human loss could be far greater - IF - the North Spur fails.
I bet many good people of Newfoundland and Labrador have already contributed to help people in Texas.
Unfortunately - the path we are on - there will be no people left in our place. Unfortunately our children and grandchildren will be lost to another province or country.
The very first thing that must happen is Muskrat must stop. A forensic audit must be completed immediately to properly assess what options we may have on this fiasco of a project. We must recognize our debt crisis and unsustainable spending habits. We need to listen to people who have great ideas on how to spend less but deliver better services. We must virtually eliminate waste in our public institutions and eliminate rewarding incompetence - through bonuses or packages.
Our politicians who rely on continued electoral success as a career - should be unceremoniously fired at the ballot box and we must try to attract those truly interested in advancing our society as a contribution.
The latest round of Nalcor executive bonuses is reflective of the arrogance of our elected officials.
The province can stop these bonuses from occurring but have not.
This province is virtually bankrupt from the Muskrat Falls fiasco - and we the ratepayers, shareholders and taxpayers cannot afford these ludicrous insulting bonuses.
In my opinion - the Premier and the CEO of Nalcor are testing our resolve. They are testing the waters for what we will stand for and if we are willing to pull the plug on their stupidity and arrogance.
If we accept these bonuses - will we also sit like little lambs as the power bills soar?
Will we continue to demand a forensic audit?
There is not a truly reasonable consideration that would allow Gil Bennett and other executives to receive a reward for "performance".
Speak up now and be heard. What are you waiting for? The doubling of your power bill? The loss of another 40,000 people? The loss of your job?
If we were to implement the real costs of Muskrat on our bill now - would that make you stand up? I think Con O'Brien might be on to something when he says - put it on our bill now. In that way the following generations (if there are any left here) would not be paying for our mess. Perhaps if it was on our power bill now - you and everybody else would hit the streets in protest.
Right now - we should be demanding the retraction of these absurd bonuses - and force the government to take some action.
Call your MHA and say - no bonuses for Nalcor and demand a forensic audit immediately. Tell them your vote depends on what they do right now - today.
This is not from Captain Obvious Marshall - this is from those who predicted the problems with the contemplation of the deal and development going back to 2006.
Stan Marshall was hired to act as a CEO - his shareholders are the people. While Stan is used to dealing with very wealthy shareholders - right now he's been charged to deal with all of us as shareholders. As such we should be treated like shareholders of a publicly traded company and he should be seeking to maximize our investments and stop boondoggles with our money.
As we learn from Uncle Gnarley's post this morning - the latest executive choice to gamble or hedge $1.82 billion of public (us being the shareholders) money - did not fare well. I wonder if we spent let's say 65 million (equivalent to what we lost) on the USA Powerball, currently standing at 650 million, would we fare much better. We are losing our province and our youth to this mess and yet we carry on. We hope sometime in the future to have a public inquiry of the failure? Really? Are we completely mad? We have not been privy to much truth on Muskrat Falls and Nalcor/Government continues to keep us in the dark on this complete and total failure of a "project". We have transmission towers here there and everywhere - little signs on the highway sprinkled like salt in our wounds - telling workers where to turn off on the Muskrat Highway for the latest erection of metal. A forensic audit needs to happen today, not tomorrow, not next week but today. The findings of that audit need to be publicly reviewed. Then we need to look at all our economic and legal options as it relates to this province. These options must be vetted in full - transparently to shareholders. Then we need a referendum.
Will we stop and use the asset another way? Will we stop completely? Will we proceed with re-opening contracts and renegotiating our position? What are the potential legal obligations of any of these actions? What are the potential legal obligations if a forensic audit finds corruption, malfeasance, lies, deceptions, and or fancy accounting? Now that we've started to play lotto 649 with our money on hedge-bets - why not take a chance on gambling to find the truth? Sitting here and saying let's have a public inquiry when this mess is completed is insanity. Let's foreshadow this choice. 100,000 seniors sitting in the dark - if they want to eat that is - trying to follow an Inquiry via snail mail? Seniors and low income families unable to afford the internet, power, telephone, or television - will be shouting out to their neighbours to see if they heard from one of their kids or grand-kids on the mainland watching our public inquiry? Wake up and shake yourself off. We cannot now or ever afford this project and that's notwithstanding the real possibility that the structure may fail. If the dam does not fail - will the transmission system? Who are we finishing the project for? 1. Not for the ratepayers of Newfoundland 2. Not for the people of Newfoundland and Labrador 3. Not for required power 4. Not to eliminate Holyrood 5. Not for industry in Labrador Then who? 1. Galway? 2. Nova Scotians? 3. The corporate elite making billions? 4. Emera? 5. Hydro-Quebec?
So Dwight Ball and Stan Marshall - do your job for the people and the shareholders respectively. Stop this project until it is thoroughly reviewed by a forensic audit and a public inquiry - NOW.
As for this latest finance disaster on the hedge bet - we don't need a forensic audit or inquiry. Fire the executive of Nalcor and put Ball on notice.
Our only choice may be greater than Liberal PC or NDP in 2019.
As for Nalcor gambling in the "futures" market. That is what they have failed at consistently since 2006. Our future. Meanwhile we are charging grandmothers and journalists for trying to have a peek?
