The Coronation of Andrew Furey - Part 2, Brendan Paddick

1986 was a defining year in the province's cable history. Prior to 1986 there were a number of scattered cable companies all over the island of Newfoundland. Everyone is familiar with former Premier Danny Williams involvement in those early days, but there were others. On May 13, 1986 the CTRC brought down its decision on which one of four cable companies would control cable vision in rural Newfoundland. Danny Williams' company Eastern Cable was in the bidding. So were Shellbird Cable (formerly Western Cablevision of Corner Brook), Central Cable and N1 Cable. HPhil Keeping, N1's founder, and personal mentor to twenty something Paddick, succeeded in convincing the CRTC to grant his company the coveted licence.

Shortly after that fateful decision, Williams' Atlantic Cable bought all the losing companies except N1. A young Brendan Paddick, fresh  from MUN's commerce program, was hired by Keeping to sell N1 to the collection of towns and villages granted to him by the CTRC. During an interview with Atlantic Magazine, Paddick opined on the old days, but his tale also tells us something about him:

"As a salesman for N1, whose business model was to build a rural cable TV network where there wasn't one, I knocked on the doors of literally every home in 151 towns. That was thousands of doors. I knowm people used to look at me and say, 'Well, now, look there's Paddick with a business degree no less, going door-to-door, couldn't find a real job.' But, you know what? In my first year oof doing that, I made about $150,000. Of course, I kept it very quiet..."

The camera pans back to the young door-knocker and his homemaker customer. Remember, he tells her, to stick her yellow copy of the cable work order in the window facing the road. That way, when the technician rolls by later, he'll know which house he's supposed to service. After all, he laughs, street numbers in these rural towns can be hard to find.
'The next thing I knew,' he says, 'is I'd have kids stopping me in the street saying, Mom wants one of those yellow things for her window. It had nothing to do with cable. It was pure peer pressure. Before I knew it, there was this groundswell. They all wanted yellow slips for their windows."

What these statements say, at least to this author, is that Paddick is an aggressive, motivated, manipulative, and ruthlessly determined individual whose primary focus is making money and using the basest means to do it. As he says:"It had nothing to do with cable. It was pure peer pressure," and "Of course, I kept it very quiet". Remember those comments for later.

Despite the aggressive expansion of its business, and re-branding to Regional Communications, the company was having great difficulty in remaining in business. It was not meeting all its debt obligations, and Paddick managed to talk the Board into allowing him to become the company's new president when the original gave his notice.

Then, in 1991, a truly fortuitous moment happened in Paddick's life - he met Wayne Myles. At the time Paddick was running his own company named Research Associates, a market research company. Myles approached Paddick to join the Board of the Victorian Order of Nurses (Myles Chaired the Board - More on Myles the Rotarian in the next part of this series). Once Paddick agreed. Myles became involved in his life helping him to negotiate a concession package, and restructure of the debt of Regional Communications. This allowed for the rebranding of Regional Communications to Persona Communications - as most people are familiar with it. Persona continued on with varying degrees of success until it went public in 1998. After the IPO Paddick became President of Persona.

Myles describes it:
"When he became CEO, we did a number of complex deals for them...in my firm which was then known as Benson Myles. So we did work for Persona across Canada and established a fairly deep relationship with him and his team."

In 2001, Myles hooked up with John Risley (much more on him in next parts), owner of ClearWater Seafoods. At the time, Risley was attempting to take control of FPI, but the Newfoundland government (Brian Tobin) would not give control of more than 15% of the company to any non-Newfoundland entity. The solution was to place Paddick as a Board member. Risley was then successful, on his second attempt, to take over FPI. After that time Myles, Risley and Paddick collaborated in each others' business:" Risley as an investor in Persona; Paddick as a board member of the Risley-founded Clearwater Seafoods public company; and Myles as legal strategist for both."

In 2002, as President of Persona, Paddick purchased a 25% share in Cable Bahamas from his old mentor Phil Keeping. As the Globe and mail noted, in 2002, Paddick did quite well by his new acquisition:
"A walking tour through Persona's management proxy circular and assorted financial statements presents a few curious tourist attractions. Here's one: Brendan Paddick, Persona president, is the happy recipient of a $1.1 million (US), interest free loan. The money, according to the proxy, was used "to finance the purchase of his new personal residence. And where is the new residence? In the Bahamas, lucky him."

By 2003 Paddick faced  a shareholders revolt over his Caribbean wanderings - they accused him of not being focused on Persona's core operations. So, in 2004, Paddick agreed to sell Persona to a group of wealth funds fronted by Dean MacDonald. The wealth fund that purchased Persona could not, however, own holdings outside of North America, so Persona's interest in Cable Bahama became immediately available. Paddick scrambled to buy it before anyone else moved in. He personally did not have the money to purchase it, but his friend John Risley did. As Risley put it:
"We had decided what our launch had to be. We originally thought it (Cable Bahamas) carried a price tag of US $35 million. At a dinner in Toronto, it became apparent that it was going to be US $50 million, and I went home angry and disappointed. Brendan told it was 50 or we weren't going to get going, so I agreed."

According to Paddick:
"Risley actually wired US $50 million to my personal chequing account in the Bahamas without a piece of paper, a demand note or a lawyer involved. We closed the deal after regulatory approvals in February 2005 and the rest is history."

By that same year, despite a seven year rule for citizenship in Barbados, Paddick was a Barbados citizen. Also in that year, Paddick and Risley had run out of their own money after buying the Cable Company of Trinidad and Tobago. Hankering back to his early door-to-door, dogged, pavement-walking days, Paddick and Risley tried to raise funds in New York, but failed. As providence would have it, or just good intelligence, billionaire Michael Lee-Chin and Michael Dell (Dell Computer) came to their rescue. They paid $130 million for a sub sea cable network called New World Networks, which became Columbus Networks. Over the years of purchasing, amalgamating, and selling cable companies in the Caribbean, Paddick established 30 corporations through a law firm owned by one Andrew V Thornhill in Barbados. The disclosure  of these tax haven accounts was made as part of the giant leak of tax haven accounts collectively known as the "Paradise Papers" to the International Consortium of Investigative Journalists. For your information, the 30 accounts and their details can be read here:

https://offshoreleaks.icij.org/search?utf8=%E2%9C%93&q=paddick&e=&commit=Search

It is unclear whether or not any of Paddick's businesses or income have paid any taxes in Canada, and specifically Newfoundland and Labrador, in ages. He remains a citizen of Barbados, and his income fund remains there too.

In November, 2016, Brendan Paddick was named Chair of Nalcor Energy, despite having no background in utilities or mega projects, other than being the "cable guy".

Exactly six months later, Wayne Myles, lawyer, chief connector with a large empire of his own, was named as Chair of the Newfoundland and Labrador Liquor Corporation.

The next part in this series will focus on John Risley, Wayne Myles, Mark Dobbin with a few others, and their ties to Doctor Andrew Furey. The alarming agenda behind the coronation of Andrew Furey.