Democracy watchdog calls Liberal ethics law a “sad joke”
The founder of a leading ethics watchdog told MPs on Wednesday that Canada’s political conflict of interest laws are riddled with loopholes.
The founder of a leading ethics watchdog told MPs on Wednesday that Canada’s political conflict of interest laws are riddled with loopholes that allow top government officials, including the Prime Minister, to profit from their decisions secretly.
In testimony before the House of Commons ethics committee, Democracy Watch co-founder Duff Conacher described the Conflict of Interest Act as “a sad joke of a law,” and called for sweeping reforms to eliminate what he called the “dirty dozen” loopholes.
“Right now, 99 per cent of decisions by cabinet ministers are considered to apply generally, meaning it’s almost impossible to be in a conflict of interest,” Conacher said. “It allows the Prime Minister, ministers, and their staff to secretly profit.”
Conacher took direct aim at Prime Minister Mark Carney’s financial disclosures, which show ongoing ties to Brookfield Asset Management, where Carney previously served as vice-chair.
Carney holds a carried interest position in Brookfield’s global transition fund, meaning he could receive long-term payouts based on the fund’s performance.
“What’s missing are the holdings in this fund,” Conacher said under questioning from Conservative MP Michael Cooper. “Disclosure rules allow for secret investments, essentially.”
Conacher also dismissed the enforcement mechanisms used by the Office of the Conflict of Interest and Ethics Commissioner, such as blind trusts and ethics screens.
“Blind trusts are not blind. Office holders pick the trustee, know what’s in the trust, and can even receive updates,” he said. “And ethics screens are a smokescreen. They allow conflicts of interest to be hidden, not stopped.”
He added that Carney “knows he is in a financial conflict of interest, and there’s nothing in the law that penalizes that.”
Conacher also criticized current Ethics Commissioner Konrad von Finckenstein, alleging that the commissioner has helped weaken enforcement by creating new loopholes and failing to investigate apparent violations.
“He buried eight investigations in six months, and expanded exemptions that make the law toothless,” Conacher said.
The ethics committee is reviewing the federal Conflict of Interest Act for the first time since 2012.
A report is expected in the coming months.
Bloc Québécois MP Luc Thériault questioned whether individuals with major corporate holdings should be eligible to serve as prime minister at all.
“Do you not think there are certain profiles that are simply not compatible with being prime minister?” he asked.
Conacher replied that if the rules are not enforced with teeth, “we are not a democracy.”
The testimony comes just hours after Democracy Watch issued a scathing statement, accusing the federal government of enabling financial conflicts and secrecy.
The group urged opposition parties to introduce a private member’s bill if the Liberal government fails to act.
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