Doctor Andrew Furey, son of Senator Furey (Chair of the Senate of Canada), Surgeon, Philanthropist, humanitarian, and family man. Have I missed anything? This is how Furey is being sold to the people of Newfoundland and Labrador, and all of it is true to one degree or another. However, and it's the biggest however I can give you, that is only one side of Andrew Furey. The other side of Furey, the one that is driving his coronation as Liberal leader and therefore Premier, couldn't be more different. That side of Furey is all business, friends in business, and back room wheeling and dealing. The two seem impossible to reconcile on the face of it, but facts don't lie.
To understand the backroom deal made to bring Furey in as Premier you have to understand that in the realm of the backroom. or the darker side of politics shall we say, there exists a schedule. When a person such as Furey "suddenly" emerges onto the scene, and has this sudden swell of support, you need to understand that it is not spontaneous. It involves years of grooming and positioning by handlers and fixers. Anyone remotely close to Furey's position has both - normally close to their inner circle. They also have financial backers to pay for organizing it all, and to fix those problems that come up along the way. Furey has these folks, and in the following parts to this expose I will be laying them out in detail for the people of the province.
Another important fact to remember is that the soil which has fed the political and business roots of Furey's life has been supplied by his father - Senator George Furey. In itself, there is nothing wrong with that, and all of us might hope our Dad would do the same for us. However, in the context of the rise of Andrew Furey, and the business interests that he has surrounded himself with, it is important to note that his father has been in the general area, so to speak.
All of that generally brings us to the backroom dealings to bring Furey into the Premiership of the province. Without getting into too much detail in this part of the expose, suffice it to say several clues were put out there to show people what happened. The first thing you need to understand is that backroom deals appointing Premier are across party lines - ie: in this case the backroom of the PC Party has decided to throw Ches Crosby on the proverbial pitchfork, and the PCs will be relegated to opposition with a caretaker leader - as per the schedule.
The first clue a move was under foot, from the general public's perspective, was the decision by the Liberal government not to proceed with a public inquiry into the Humber Valley Paving scandal. Frank Coleman, who was at the time owner of the company, and anointed leader of the PC's (Premier in waiting actually), was a long-time business associate of not only Andrew Furey's father, but also Brendan Paddick, John Risley, Peter Woodward, Rex Anthony, and Danny Williams. Other major business people with links to Andrew Furey, and or his father, include people such as Paul Antle and especially Mark Dobbin (as you will see later). Here's a little taste of what's to come on this:
The Fish Merchants Battle For the PC Leadership
Rock Solid Politics, March 30, 2014,
https://rocksolidpolitics.blogspot.com/2014/03/the-fish-merchants-battle-for-pc.html
"
Coleman was educated as an economist. He was the senior economist for Newfoundland and Labrador Hydro (before there was a Nalcor), and had a private consulting business known as Atlantic Consulting Economists Ltd. Strangely, he wrote a study in 1993 on the economic feasibility of the Trans Labrador Highway - which his company is now paving. But there are many more twists along this road.
It goes back to the fishery, strangely enough. Back to the days of FPI. FPI was a company formed by the provincial government from the assets of a number of failed fishing companies in 1984. Then, in 1987 under Premier Peckford, FPI was privatized. Previous to the privatization, a number of fishing corporations that were competitors to FPI put forward proposals to take it over, but the government wouldn't relax the rule of a maximum 15% ownership per entity. The predecessor to Iceland Group PLC was one of them. The Risley Group (Clear Water) was another. The proposals were refused by the government, and John Risely blamed the Williams government for meddling in the deal, and killing it. http://www.cbc.ca/news/canada/newfoundland-labrador/government-meddling-hastened-fpi-s-demise-risley-1.652838
In any case, Bill Barry of the Barry Group (the other PC leadership candidate) thought he had secured a deal to buy FPI's Newfoundland assets - so much so that it was made public: http://www.theglobeandmail.com/report-on-business/fpi-reaches-deal-to-sell-local-operations/article676850/
But, the Williams' government didn't go with Mr. Barry. Instead, the assets were sold off to Ocean Choice International which was owned by Ches Penney of the Penney Group. National media were so perplexed by Penney's move that they speculated he could be the front man for an Icelandic company: http://www.theglobeandmail.com/report-on-business/who-is-this-guy-and-whys-he-investing-in-fish/article1077331/
The other successful bidder was High Liner Foods Inc of Nova Scotia - which bought a plant and FPI's US marketing arm.
What was left of FPI became FP Resources Ltd. (FPR) FPR's membership is a who's who of the Newfoundland and Labrador business establishment : Peter Woodward (Woodward Group); Rex Anthony (Anthony Group); Frank Coleman (Coleman Group); and previous members John Crosby and George Furey. International players are: Iceland Group PLC; Glitner Banki hf (recently stripped of its bank status in Iceland and in the midst of serious issues); Eric Barratt (Sanford Limited New Zealand); and Randy Bishop (Whitecap International Seafood Exporters). John Risely and his Risely Group of Nova Scotia round out the list.
FP Resources took its cash from the fishery and began investing in the Caribbean. Specifically it began investing in a company called CFFI Venture (Barbados) Inc. (CFFI). CFFI in turn invested in Columbus Communications Ltd, a privately owned telecommunications company that provides retail, cable and internet services to Jamaica, the Bahamas, Trinidad and Grenada, and broadband connectivity to Caribbean countries. Columbus is run by Newfoundlander Brendan Paddick. He was also the CEO of Persona Communications, which some of you may remember being at the centre of a $15 million contract controversy (Williams' government gave Persona an untendered $15 million contract to deliver cable services to Labrador). http://www.cbc.ca/news/canada/newfoundland-labrador/tax-dollars-boosted-persona-for-sale-reid-says-1.678159 "
By dropping the judicial/public inquiry into Coleman and his company, the Liberals signaled a deal had been done. Within a week Dwight Ball resigned as Premier. The media in the province is spinning Ball's departure as an uprising within the caucus against Ball. The truth is that certain cabinet ministers within the caucus, acting in conjunction (more or less orders) with the backroom, deliberately undermined Ball to make room for Furey. Furthermore, there is evidence the federal Liberal party is up to its neck in the Furey coronation (later in parts to come). Suffice it to say that the political/business establishment is behind the "sudden rise" of Andrew Furey.
It is also evident that once Furey is made leader of the Liberal Party (officially), and Premier (officially), that he will call a summer election. The first clue for this is the temporary spending bill just passed in the House of Assembly that funds the government until June. The second clue is that Furey will be an un-elected Premier, which has never happened in the province's history, and therefore its a good excuse to call an election so he can "have a mandate, blah, blah...". You get the idea.
Other signs to look for:
1. The media, especially the CBC, spinning stories that make Ches Crosbie look bad or ineffectual;
2. Media, or Liberal spinners (yes, like you Lori Ann Oates), stressing the need for a new economy in the province based on technology rather than resources (as if the place doesn't need every single cent it can squeeze from any rock available...)
3. Key words like "transformational"and "generational" and "fundamental" "change" coming from the media, business, and/or previously mentioned shills. These words are a clue to what Furey and his business backers/friends have in store for the province. They're trying to get people thinking along those lines before they bring in their plans;
4. A heavy emphasis on the state of the economy and the desperate need to act - to create fear in the public, and condition them for saving solution; and
4. Marginalizing of critics publicly.
These are some of the things you can expect. There may well be others for the same purpose. The important thing for you to know, as a Newfoundlander and Labradorean, is that you are being played yet again by the business elite of the province - as disgusting as that is. Muskrat Falls made some in the business community very rich. They took what little money you had, and then they mortgaged you for generations, but they got their piece. Now they are about to do it again. This time it will involve technology. The "transformation" that Furey referred to in his opening address has to do with digitizing the province, artificial intelligence, and selling people's genetic information - most notably to an American corporation. All the players mentioned above have a hand in it. Most have formed corporations to profit from it. It's happening exactly the same way Muskrat Falls happened: an arranged political coronation that has at its core people with vested interests that will cost the people of the province whatever they might have left.
The parts coming up in this expose will be the detailed breakdown of the business people involved in this "transformation", their relationship to Andrew/George Furey, and the detailed breakdown of the corporations and organizations they have established over the last decade to get ready for this moment. You've been warned. Be vigilant. Be informed. Let others know the truth. If you question whether I'm telling you the truth ask yourself this: "Was he telling us the truth about Muskrat Falls?"
Showing posts with label Frank Coleman. Show all posts
Showing posts with label Frank Coleman. Show all posts
Sunday, March 8, 2020
Wednesday, November 26, 2014
The Death of the PC Empire in Newfoundland and Labrador
Seven by-elections later, without success, the ruling Tories in Newfoundland and Labrador resemble the old Iraq war slogan "shock and awe". Last night it was clearly visible on the faces of the defeated candidates and the cabinet ministers that campaigned on their behalf. It's not that they don't understand what's happening to them, it's just that they don't understand what happened to them.
For the PCs all roads lead to Muskrat Falls. After previously sacred Danny Williams got his Muskrat Falls deal he resigned - mere weeks later. That shattered the "God" image so carefully crafted. The population was left unstable as if it had lost its father, and its foundation had been shaken. Such is the danger of iron man rule - all men are mortal.
Then there was the viscous battle on the airwaves and in the social media over the wisdom and value of the project. The PCs hired expensive communication firms, and stalled requests for information on the project. When that strategy appeared to crack the Tories turned to their normal practice: legislation. They created Bill 29 to amend the Access to Information Act. Typically that would be shuffled off as no big deal. It's not as if the public are filing access requests. However, the press, smelling a rat, went ballistic. Muskrat Falls opponents and the opposition parties grabbed onto the issue, backed by the press, and even forced a multi-day filibuster. More importantly the image was sealed. The PCs couldn't sell the bill as just normal legislation, and the public began seeing it as an act to cover-up Muskrat Falls dealings. That was when the trust was violated.
Thereafter the PCs, generally speaking, lost public trust in their word, but not necessarily in the project. Newly appointed leader Dunderdale and her team, which included Williams' brother, decided to attack the Muskrat Falls opponents rather than address the core public trust issue. She termed opponents as "nay-sayers, known critics of the government" etc... Her arrogance, and that of her colleagues, was so palpable the public became repulsed. When the PUB refused to give the project an unfettered endorsement, the PCs went crazy with indignation - including Williams who derided not just opponents, but also the PUB. It was war in a way. The problem for the PCs was their guns were focused in the wrong direction. As distrust grew, the people began taking opponents accusations seriously, and so an attack on the assertions of proponents began to be an attack on the people themselves.
It always was, and remained a battle for hearts and minds. The PCs refusal to alter their strategy of arrogantly attacking those opposed to their vision, and instead addressing the core issue of trust, resulted in a solidification of the view that "the PCs were out of touch". A natural result when a government can't see the core issue and instead shoots the messenger. So great was the vitriol that Dunderdale became almost detested by the public. The PC caucus decided their poll numbers were bad enough to fire Dunderdale, and they did just that. However, by this time, the public considered them, rightly so, as all infected by the same affliction - arrogance.
As if to emphasize the point the PCs, led on the outskirts by Williams, attacked leadership candidate Bill Barry (a reformist-type candidate) and coronated a pro-Muskrat Falls businessman - Frank Coleman. At one time an endorsement by Williams would have guaranteed a candidate acceptance among the public, but this time it back fired. The endorsement hung around Coleman's head like a guillotine, and in the end the blade came down. Coleman's company, HVP, was quietly released from a money losing government contract in Labrador, and the $18 million dollar performance bonds that were meant to guarantee it. After months of agony, and accusations "Danny's Man" was simply implementing "Danny's Will", Coleman resigned before he was even sworn in.
That led to another leadership race, after the first one was quietly swept under the carpet like it never happened, and Paul Davis was anointed the new PC leader. Davis immediately came under scrutiny for political ties to his old employer, the RNC provincial police. At the core of the issue were campaign donations that were banned by the RNC Act. (to this day the 2013 Political Contribution List has not been released publicly - although it has been ready for 7 months I'm aware of). Furthermore, an apparent political deal reached between himself and perennial political opportunist Steve Kent still hung in the air as Kent was appointed Deputy Premier. The public smelled the same-old Tory contempt for democracy that had its roots in the Muskrat Falls battles, and Davis was labelled. Then came consummation of another apparent political deal when Senator Manning's (a Davis leadership supporter) niece was appointed to cabinet as an unelected Justice Minister.
Every action has a reaction. Every move the PCs made over the last four years did the exact opposite of what they intended. They reinforced the perception created by the Muskrat Falls battles that secrecy and power were the poison of choice for the PCs. They never adjusted from having a front man that could sell ice to Eskimos. They never saw the effect of the 5th column that battled them at every turn over Muskrat Falls. They never realized that the core issues with Muskrat Falls would stick and become the core issues against the government. There are none so blind as those that refuse to see. So it went with the PCs. All their roads led to Muskrat Falls.
For the PCs all roads lead to Muskrat Falls. After previously sacred Danny Williams got his Muskrat Falls deal he resigned - mere weeks later. That shattered the "God" image so carefully crafted. The population was left unstable as if it had lost its father, and its foundation had been shaken. Such is the danger of iron man rule - all men are mortal.
Then there was the viscous battle on the airwaves and in the social media over the wisdom and value of the project. The PCs hired expensive communication firms, and stalled requests for information on the project. When that strategy appeared to crack the Tories turned to their normal practice: legislation. They created Bill 29 to amend the Access to Information Act. Typically that would be shuffled off as no big deal. It's not as if the public are filing access requests. However, the press, smelling a rat, went ballistic. Muskrat Falls opponents and the opposition parties grabbed onto the issue, backed by the press, and even forced a multi-day filibuster. More importantly the image was sealed. The PCs couldn't sell the bill as just normal legislation, and the public began seeing it as an act to cover-up Muskrat Falls dealings. That was when the trust was violated.
Thereafter the PCs, generally speaking, lost public trust in their word, but not necessarily in the project. Newly appointed leader Dunderdale and her team, which included Williams' brother, decided to attack the Muskrat Falls opponents rather than address the core public trust issue. She termed opponents as "nay-sayers, known critics of the government" etc... Her arrogance, and that of her colleagues, was so palpable the public became repulsed. When the PUB refused to give the project an unfettered endorsement, the PCs went crazy with indignation - including Williams who derided not just opponents, but also the PUB. It was war in a way. The problem for the PCs was their guns were focused in the wrong direction. As distrust grew, the people began taking opponents accusations seriously, and so an attack on the assertions of proponents began to be an attack on the people themselves.
It always was, and remained a battle for hearts and minds. The PCs refusal to alter their strategy of arrogantly attacking those opposed to their vision, and instead addressing the core issue of trust, resulted in a solidification of the view that "the PCs were out of touch". A natural result when a government can't see the core issue and instead shoots the messenger. So great was the vitriol that Dunderdale became almost detested by the public. The PC caucus decided their poll numbers were bad enough to fire Dunderdale, and they did just that. However, by this time, the public considered them, rightly so, as all infected by the same affliction - arrogance.
As if to emphasize the point the PCs, led on the outskirts by Williams, attacked leadership candidate Bill Barry (a reformist-type candidate) and coronated a pro-Muskrat Falls businessman - Frank Coleman. At one time an endorsement by Williams would have guaranteed a candidate acceptance among the public, but this time it back fired. The endorsement hung around Coleman's head like a guillotine, and in the end the blade came down. Coleman's company, HVP, was quietly released from a money losing government contract in Labrador, and the $18 million dollar performance bonds that were meant to guarantee it. After months of agony, and accusations "Danny's Man" was simply implementing "Danny's Will", Coleman resigned before he was even sworn in.
That led to another leadership race, after the first one was quietly swept under the carpet like it never happened, and Paul Davis was anointed the new PC leader. Davis immediately came under scrutiny for political ties to his old employer, the RNC provincial police. At the core of the issue were campaign donations that were banned by the RNC Act. (to this day the 2013 Political Contribution List has not been released publicly - although it has been ready for 7 months I'm aware of). Furthermore, an apparent political deal reached between himself and perennial political opportunist Steve Kent still hung in the air as Kent was appointed Deputy Premier. The public smelled the same-old Tory contempt for democracy that had its roots in the Muskrat Falls battles, and Davis was labelled. Then came consummation of another apparent political deal when Senator Manning's (a Davis leadership supporter) niece was appointed to cabinet as an unelected Justice Minister.
Every action has a reaction. Every move the PCs made over the last four years did the exact opposite of what they intended. They reinforced the perception created by the Muskrat Falls battles that secrecy and power were the poison of choice for the PCs. They never adjusted from having a front man that could sell ice to Eskimos. They never saw the effect of the 5th column that battled them at every turn over Muskrat Falls. They never realized that the core issues with Muskrat Falls would stick and become the core issues against the government. There are none so blind as those that refuse to see. So it went with the PCs. All their roads led to Muskrat Falls.
Friday, June 6, 2014
Frank Coleman and Lies of Omission
What to say on the Frank Coleman/Humber Valley paving story? It's a story of greed, politics and deal making. A tale that one might expect to read from yesteryear, but not in today's "transparent" world of politics. An agreement founded in such arrogance, and so contemptuous of the people of the Province, that you couldn't be blamed for having a hard time believing it could happen today - even given the murky waters of Newfoundland politics. Yet, here it is.
It starts with a sudden coup in the Premier's Office as Kathy Dunderdale is forced from office by a caucus revolt - that was January 22, 2014. The, on February 11, former premier Danny Williams stepped out of the shadows and smeared the position of PC leadership candidate Bill Barry:
"Bill Barry would definitely not have my support. Absolutely not... He indicates that he's interested in privatizing energy..Nalcor, Hydro, he has an interest in privatizing health care, and he has an interest in privatizing education. Well, he doesn't stand for anything that I support, so Bill Barry is off my list. That's probably the clearest thing I can tell you."
Barry's response was direct, but diplomatic:
"Unfortunately, he (Williams) talked about a letter I sent to caucus which, in my view, he totally mischarasterized (sic). I certainly didn't say Nalcor would be privatized and health and education would be privatized. That's not what I said at all."
Barry's response was tame, because he should have called Williams' comments outright lies, with the somewhat obvious purpose, given the context of the rest of his commentary, to destroy Barry as a PC leadership candidate. These were the first shots so to speak.
By sheer coincidence no doubt, two days later Frank Coleman is interviewed by the Telegram on "rumors" he may be running for the leadership. It's actually a most interesting and foreshadowing interview as it turns out. Coleman's comments then:
" It (running for leadership) depends on me having a fairly robust discussion with my partners in the businesses that I am involved in about if I do make a run at this.."
" I am heavily involved (in the business) and there is a bunch of things we are in the middle of, and we are trying to work our way through."
" There is a bunch of things I'm working through...if they transpire the way I hope they do, great. If they don't, it will be somebody else's mantle, not mine."
Cryptic, very cryptic words given the time and what was about to transpire. Coleman admits several things here: 1. That his running for leadership depends on "working things through" with his businesses; 2. That the conversation involves his business partners; and 3. That he is personally working these things through. A man very deeply involved. Now consider, at this very moment in time, his business Humber Valley Paving (HVP) is in trouble with its largest contract - the $19 million paving contract for the Trans Labrador highway. He is losing money, had to get a year extension to complete it, and had personally guaranteed the performance bonds to finish it. In other words, Coleman was a man in a serious bind. Can it possibly be that the words he says above do not refer to such a bind? A reasonable person would conclude they refer to the exact situation Coleman was facing with his government contract, the bonds and HVP.
Then, the very next day no less, Coleman contends he resigned as President and CEO of HVP. That's odd for a number of reasons, the least of which being: Why would the President and CEO of a company, that had just admitted he was "working things through" suddenly resign the next day? Is it reasonable to think that a man with his name on a $19 million bond, and with that company apparently unable to finish the job, would simply walk away from control of that situation on blind faith that something might come down the road to save him? Not only is that unreasonable, it simply defies imagination. The only logical conclusion is that he knew the issue would be resolved in his favour.
Then, on March 10, Coleman contends he resigned as a "director and shareholder". His words. To my knowledge, there is no way to resign as a shareholder. The only logical interpretation of that statement is he sold his shares in HVP. Considering his controlling interest in HVP, that can only mean he sold the company. That begs this question: Who would sell their control of a company if that company's performance of its work on a contract (in this case the Labrador highway) could mean being personally accountable for up to $19 million of your personal wealth? Not just that. Who would buy a controlling interest in a company that was about to default (possibly) on a $19 million contract? Then there are the issues that accompany any sale of a business like: negotiations; due diligence; legal work; and closing, etc. All of this would require much more than the month timeline that Coleman has put out there officially. Again, that defies any reasonable logic.
The obvious conclusion, of a reasonable person, would be that Coleman had full knowledge that his name would be removed from those bonds before he sold his shares - which would mean before March 10. In his words: "..if they transpire the way I hope they do." Apparently they did. Three days later, Coleman's son, apparently representing the new ownership, contacted Minister McGrath to have the contract cancelled, and thus remove the need for the bonds. Seven days later the contract was dissolved and Frank Coleman was released from his $19 million bonds.
Perhaps there is a hint of the truth when, during an interview with Fred Hutton at VOCM on May 9, 2014, Coleman made the following statement:
" I've been in this race for 6 months.."
Six months. That's an interesting statement considering at the time of the interview that would put Coleman's involvement at about the beginning of December, 2013 - or just before Dunderdale was forced to resign by her caucus. For Coleman, that means he would have had to been involved in the ouster of Dunderdale in some way. After all, how could he be involved in a leadership race that didn't exist at the time? There is only one answer for that - it was a backroom plot to dump Dunderdale, and that plot had to have involved Coleman in some way. His words, not mine - "I've been in this race for six months".
The CBC uncovered all this and broke the story. At first it was reported as a $9.5 million bond. Then it was discovered to be two $9.5 million bonds, equaling a total commitment of $19 million. Then it was discovered that Coleman had to sign for the bonds personally. All of this had to be dug up by the media. Coleman never proactively disclosed any of it, even when he knew the exposure was more than was being reported, and even though he new he had personally endorsed them.
Then, as the walls started to close in on him and McGrath, the stories started to trip themselves up. Coleman refused to be forthcoming with who the new owners were of HVP. He even refused to tell the media who he sold his own shares to. He began to trip himself up in his own lies. One such example:
" I don't believe that representatives of the company dealt directly with the Minister...My son, and other members of our company would have spoken directly to the officials. This would have been a decision by officials within the department to make the decision, and they would have made recommendations to the Minister."
As it happened, that wasn't true, and Coleman's media representative got back to the reporter:
"... (Coleman) did not intend to deny that his son, Gene, spoke to Minister McGrath."
Well, it wasn't just an intention to deny the meeting, it was a statement that there wasn't one. In fact, Coleman's son did the negotiating, and was still a director, if not a shareholder as well, of HVP.
Then, on April 30, McGrath made the following statement:
"We don't want to put a company out of business, because if you take their bonds away they would easily be put out of business for future work."
That was original excuse for dissolving the contract - to save the company and its employees. McGrath added that in order to have the job done on time and budget that it was necessary to cancel the contract as going after the bonds was unreliable. That lasted until the national association responsible for bonding agencies accused the Minister of misleading the public by giving false information regarding how bonds work. Yet McGrath still had his whole save the company and the jobs argument floating. Coleman remained silent on the issue of saving the company and the jobs. He never once said the company was in trouble. In fact, he called it "a great company". He bristled at the accusations that this "great company's" bonds were traded off for his agreement to run for leadership - May 6:
" No, I did not benefit personally from this whatsoever. It is incomprehensible to me that somebody would infer that I benefited personally from this."
That was until the media disclosed Coleman personally signed for the bonds, and would have been responsible for their having to be enforced. Then, despite not having mentioned one word of this before publicly, Coleman came out and said this:
" The option that the company would have had its bond pulled is not necessarily the right conclusion to reach. The company would have had other options, either to complete the work or to sell the work."
As usual in this saga, Coleman attempts to cover one lie with another twist. His problem though is his cover story only adds significantly to the drama. Consider his words. There was no urgency to cancel the bonds. The work could be finished or sold. Take him at his word on this for a moment. If those things are all true, then why did the Minister dissolve the contract and release Coleman from the bonds? That would only benefit one person, Frank Coleman. Not the employees. Not the company. Coleman's own defence to personally benefiting was there was no need to release him - so why did Coleman's son request it and why did McGrath do it? See, that's the problem with lies. We even tell our children this as they grow up. Lies only beget more lies, and eventually they all fall. I will leave you with this last Coleman quote, which I believe is the biggest lie of all:
"I can absolutely tell you there is nothing untoward here."
Sunday, March 30, 2014
The Fish Merchants Battle for the PC Leadership
I started my research on Frank Coleman, because he wants to be premier of this province. We haven't had a whole lot of success in that department, so a closer look is certainly warranted. In my previous post, Frank Coleman's potential conflicts of interest were outlined. They aren't his only areas of potential conflicts, and as you peel this onion a few more start to appear. I want to state from the start that this post is not about demonizing Frank Coleman. It is about shining a light on his past and current dealings for the dual purpose of informing the public, and changing our system of democracy for the better here.
Coleman has been passed off in the press as a successful grocery store business type. That's true on a very superficial level, but not nearly a complete assessment. As Coleman himself said on the CBC show "On Point", he is a long time friend of Danny Williams and Tom Marshall. That is a fact. His companies Coleman Management Services Ltd. and Humber Valley Paving gave Marshall almost $23,000 in election contributions in the last ten years, and even chipped in $2,500 for Williams. Of course that raises questions considering that Humber Valley Paving was awarded the Labrador highway project, valued over $60 million, while Marshall was finance minister. It also raises issues around Marshall resigning his seat and "encouraging" Coleman to seek it in a bye-election. However, this post deals with the history, and there is a history.
Coleman was educated as an economist. He was the senior economist for Newfoundland and Labrador Hydro (before there was a Nalcor), and had a private consulting business known as Atlantic Consulting Economists Ltd. Strangely, he wrote a study in 1993 on the economic feasibility of the Trans Labrador Highway - which his company is now paving. But there are many more twists along this road.
It goes back to the fishery, strangely enough. Back to the days of FPI. FPI was a company formed by the provincial government from the assets of a number of failed fishing companies in 1984. Then, in 1987 under Premier Peckford, FPI was privatized. Previous to the privatization, a number of fishing corporations that were competitors to FPI put forward proposals to take it over, but the government wouldn't relax the rule of a maximum 15% ownership per entity. The predecessor to Iceland Group PLC was one of them. The Risley Group (Clear Water) was another. The proposals were refused by the government, and John Risely blamed the Williams government for meddling in the deal, and killing it. http://www.cbc.ca/news/canada/newfoundland-labrador/government-meddling-hastened-fpi-s-demise-risley-1.652838
In any case, Bill Barry of the Barry Group (the other PC leadership candidate) thought he had secured a deal to buy FPI's Newfoundland assets - so much so that it was made public: http://www.theglobeandmail.com/report-on-business/fpi-reaches-deal-to-sell-local-operations/article676850/
But, the Williams' government didn't go with Mr. Barry. Instead, the assets were sold off to Ocean Choice International which was owned by Ches Penney of the Penney Group. National media were so perplexed by Penney's move that they speculated he could be the front man for an Icelandic company: http://www.theglobeandmail.com/report-on-business/who-is-this-guy-and-whys-he-investing-in-fish/article1077331/
The other successful bidder was High Liner Foods Inc of Nova Scotia - which bought a plant and FPI's US marketing arm.
What was left of FPI became FP Resources Ltd. (FPR) FPR's membership is a who's who of the Newfoundland and Labrador business establishment : Peter Woodward (Woodward Group); Rex Anthony (Anthony Group); Frank Coleman (Coleman Group); and previous members John Crosby and George Furey. International players are: Iceland Group PLC; Glitner Banki hf (recently stripped of its bank status in Iceland and in the midst of serious issues); Eric Barratt (Sanford Limited New Zealand); and Randy Bishop (Whitecap International Seafood Exporters). John Risely and his Risely Group of Nova Scotia round out the list.
FP Resources took its cash from the fishery and began investing in the Caribbean. Specifically it began investing in a company called CFFI Venture (Barbados) Inc. (CFFI). CFFI in turn invested in Columbus Communications Ltd, a privately owned telecommunications company that provides retail, cable and internet services to Jamaica, the Bahamas, Trinidad and Grenada, and broadband connectivity to Caribbean countries. Columbus is run by Newfoundlander Brendan Paddick. He was also the CEO of Persona Communications, which some of you may remember being at the centre of a $15 million contract controversy (Williams' government gave Persona an untendered $15 million contract to deliver cable services to Labrador). http://www.cbc.ca/news/canada/newfoundland-labrador/tax-dollars-boosted-persona-for-sale-reid-says-1.678159
FP Resources also owned 19.24% of High Liner Foods, which received the FPI's old US marketing arm (many said this was the most valuable part of the company). It sold that interest in 2010 for $20.5 million.
Columbus Communications Ltd. is now worth about $1.6 billion US http://en.wikipedia.org/wiki/Columbus_Communications
I suppose you could say that Frank Coleman is wrapped up in some heavy duty business. The question is: does that mean he shouldn't run for the position of premier. He could hand that business off to a blind trust, but it can't be influenced in any way by family members - including sons - as that is not arms length as required by law. He would have to recuse himself from any decisions regarding awarding of contracts for Muskrat Falls, international cable, groceries, liquor and all the other enterprises he is involved in.
The same would be true for Bill Barry, and the fishery. Barry didn't get Williams' nod of approval for leader of the PC Party - Williams actually, and very publicly, campaigned against Barry. Of course, Barry didn't get Williams' nod to take over FPI assets either. Perhaps there is a history there, who knows.
The problem I have with Coleman is his bid for the camp services contract on Muskrat Falls. In my mind, you simply can't run for the head of government when you are bidding on government contracts, and in fact holding $60 million worth of business in paving contracts with that same government. Then there is the Emera NL directorship. Coleman says he resigned, and in an email exchange, an Emera official stated the same:
"Mr. Coleman formally resigned from ENL's board of directors on March 14, 2014. This was confirmed with the Telegram and NTV News that afternoon."
That's all fine and good I said, but why hasn't Emera, a publicly traded company, issued a press release to that effect. Also, who is Coleman's replacement on the Board? The Emera spokesman's response:
A replacement for Mr. Coleman has not
been determined."
Coleman has been passed off in the press as a successful grocery store business type. That's true on a very superficial level, but not nearly a complete assessment. As Coleman himself said on the CBC show "On Point", he is a long time friend of Danny Williams and Tom Marshall. That is a fact. His companies Coleman Management Services Ltd. and Humber Valley Paving gave Marshall almost $23,000 in election contributions in the last ten years, and even chipped in $2,500 for Williams. Of course that raises questions considering that Humber Valley Paving was awarded the Labrador highway project, valued over $60 million, while Marshall was finance minister. It also raises issues around Marshall resigning his seat and "encouraging" Coleman to seek it in a bye-election. However, this post deals with the history, and there is a history.
Coleman was educated as an economist. He was the senior economist for Newfoundland and Labrador Hydro (before there was a Nalcor), and had a private consulting business known as Atlantic Consulting Economists Ltd. Strangely, he wrote a study in 1993 on the economic feasibility of the Trans Labrador Highway - which his company is now paving. But there are many more twists along this road.
It goes back to the fishery, strangely enough. Back to the days of FPI. FPI was a company formed by the provincial government from the assets of a number of failed fishing companies in 1984. Then, in 1987 under Premier Peckford, FPI was privatized. Previous to the privatization, a number of fishing corporations that were competitors to FPI put forward proposals to take it over, but the government wouldn't relax the rule of a maximum 15% ownership per entity. The predecessor to Iceland Group PLC was one of them. The Risley Group (Clear Water) was another. The proposals were refused by the government, and John Risely blamed the Williams government for meddling in the deal, and killing it. http://www.cbc.ca/news/canada/newfoundland-labrador/government-meddling-hastened-fpi-s-demise-risley-1.652838
In any case, Bill Barry of the Barry Group (the other PC leadership candidate) thought he had secured a deal to buy FPI's Newfoundland assets - so much so that it was made public: http://www.theglobeandmail.com/report-on-business/fpi-reaches-deal-to-sell-local-operations/article676850/
But, the Williams' government didn't go with Mr. Barry. Instead, the assets were sold off to Ocean Choice International which was owned by Ches Penney of the Penney Group. National media were so perplexed by Penney's move that they speculated he could be the front man for an Icelandic company: http://www.theglobeandmail.com/report-on-business/who-is-this-guy-and-whys-he-investing-in-fish/article1077331/
The other successful bidder was High Liner Foods Inc of Nova Scotia - which bought a plant and FPI's US marketing arm.
What was left of FPI became FP Resources Ltd. (FPR) FPR's membership is a who's who of the Newfoundland and Labrador business establishment : Peter Woodward (Woodward Group); Rex Anthony (Anthony Group); Frank Coleman (Coleman Group); and previous members John Crosby and George Furey. International players are: Iceland Group PLC; Glitner Banki hf (recently stripped of its bank status in Iceland and in the midst of serious issues); Eric Barratt (Sanford Limited New Zealand); and Randy Bishop (Whitecap International Seafood Exporters). John Risely and his Risely Group of Nova Scotia round out the list.
FP Resources took its cash from the fishery and began investing in the Caribbean. Specifically it began investing in a company called CFFI Venture (Barbados) Inc. (CFFI). CFFI in turn invested in Columbus Communications Ltd, a privately owned telecommunications company that provides retail, cable and internet services to Jamaica, the Bahamas, Trinidad and Grenada, and broadband connectivity to Caribbean countries. Columbus is run by Newfoundlander Brendan Paddick. He was also the CEO of Persona Communications, which some of you may remember being at the centre of a $15 million contract controversy (Williams' government gave Persona an untendered $15 million contract to deliver cable services to Labrador). http://www.cbc.ca/news/canada/newfoundland-labrador/tax-dollars-boosted-persona-for-sale-reid-says-1.678159
FP Resources also owned 19.24% of High Liner Foods, which received the FPI's old US marketing arm (many said this was the most valuable part of the company). It sold that interest in 2010 for $20.5 million.
Columbus Communications Ltd. is now worth about $1.6 billion US http://en.wikipedia.org/wiki/Columbus_Communications
I suppose you could say that Frank Coleman is wrapped up in some heavy duty business. The question is: does that mean he shouldn't run for the position of premier. He could hand that business off to a blind trust, but it can't be influenced in any way by family members - including sons - as that is not arms length as required by law. He would have to recuse himself from any decisions regarding awarding of contracts for Muskrat Falls, international cable, groceries, liquor and all the other enterprises he is involved in.
The same would be true for Bill Barry, and the fishery. Barry didn't get Williams' nod of approval for leader of the PC Party - Williams actually, and very publicly, campaigned against Barry. Of course, Barry didn't get Williams' nod to take over FPI assets either. Perhaps there is a history there, who knows.
The problem I have with Coleman is his bid for the camp services contract on Muskrat Falls. In my mind, you simply can't run for the head of government when you are bidding on government contracts, and in fact holding $60 million worth of business in paving contracts with that same government. Then there is the Emera NL directorship. Coleman says he resigned, and in an email exchange, an Emera official stated the same:
"Mr. Coleman formally resigned from ENL's board of directors on March 14, 2014. This was confirmed with the Telegram and NTV News that afternoon."
That's all fine and good I said, but why hasn't Emera, a publicly traded company, issued a press release to that effect. Also, who is Coleman's replacement on the Board? The Emera spokesman's response:
"Mr. Coleman was a member of the Emera
Newfoundland & Labrador Board until March 14. ENL is a subsidiary of Emera.
Emera is the publicly traded company on the TSX. EMERA's policy is to issue announcement
for board appointments and resignations to its board. The TSX would not require
such disclosure for a subsidiary board.
So Emera's policy is to issue an announcement but they aren't in this case, and the TSX can't force them to, because Emera NL is a subsidiary. Of course that doesn't explain why the section listing Emera NL board members suddenly left its website. The question left begging is why won't Emera publicly issue a press release on Coleman's "resignation"? That's a fair question. At the same time all this went down, Coleman's company Happy Valley Paving's website went down for maintenance, and finally came back up on line on April 2nd .
In my opinion, Frank Coleman is not a good choice for premier of this province. He is more of the same old same old. He is a Merchant. For that matter, so is Bill Barry - although I'm not aware of any contracts Barry Group may have with the government. This PC leadership wouldn't matter if the winner wasn't automatically going to be premier. We've had enough Merchants. We don't need another battle between two Merchants with a history, with a third Merchant trying to get his way - as usual. It's time this province was governed by and for the people. Anything less is unacceptable.
Wednesday, March 19, 2014
Frank Coleman's Potential Conflict of Interest
Frank Coleman, a successful businessman in Newfoundland and Labrador, has made it official that he's a candidate for the PC Party leadership, and therefore Premier. His campaign kicked off today at a golf course, after a week holiday in the sun. Rumors abound that he is a reluctant candidate. The Telegram interviewed him, and quoted Coleman as saying:
" The Danny Question?
'Danny and I are friends going way back,' he said. 'We've been friends for many years and I discuss my potential candidacy with him and he gave me his advice on what to expect and told me to do what was right for me and my family and for the party.'
Of course that follows Williams' comments on Bill Barry's, of Barry Group, candidacy for the same job:
" Bill Barry would definitely not have my support. Absolutely not... If I see someone like Bill Barry, who I obviously have issues with his policies and the way he handles himself, I'll state that. Otherwise I'm keeping my powder dry for now." He told reporters.
It seems quite clear that Williams, who seems to have a bit of a God complex (my opinion) wasn't quite able to take his own advice of 2007:
"I find it sad when former premiers comment on current administrations...I pray to God that I never do that when I finish politics...I certainly hope that I can make a commitment to the people of Newfoundland and Labrador that I won't provide gratuitous comments or opinions on someone who succeeds you - different times, different circumstances." He said.
Well, so much for Williams taking his own advice, as all he's done since leaving office is offer opinions etc on his successors or potential successors. Be that as it may, he certainly became involved in one way or another with the Coleman candidacy.
However, Coleman has a bigger problem than that. Whether he realizes it or not, or whether he cares or not, Frank Coleman is entering the world of politics, and in politics you have no private life. What you do and have done goes under the microscope, and that's where Coleman is today. In Newfoundland it's a very, very small goldfish bowl.
Frank Coleman heads the Coleman Group of Companies. It's a big organization within the province employing about 750 people. The primary core business for Coleman's is grocery. It also owns companies like Humber Valley Paving (HVP). Its primary company for running the business part of the Group is Coleman Management Services Ltd headquartered out of Corner Brook. Coleman is also involved in real estate, and sits on the boards of a number of companies - most notably Emera Newfoundland and Labrador Inc. ( a company formed for the Muskrat Falls hydroelectric project).
As I see it, there are a number of issues with Mr. Coleman running to be premier of this province. Firstly, and perhaps most importantly, his company HVP has an active bid in for the camp services contract for the Lower Churchill hydroelectric project. Now some erstwhile social media types have indicated a blind trust would solve this potential conflict of interest. They may be right. That would depend on who was in charge of the trust, and all those "devil's in the detail" type of stuff. Let's say everything being equal, the blind trust was sufficient to remove him from the business aspects of his company. The question remains, as it did for Williams and his offshore service companies, can he be truly unmoved by his known interest, and make a decision on the Lower Churchill project which would damage his business? That is known as a conflict of interest. Right now he is in a potential conflict of interest, because he hasn't won the PC leadership, and thereby the premiership, yet.
Then there is his directorship on the board of Emera NL. One would assume he has already reigned fro that position, but as yet I have seen nothing that would indicate that. Given Emera NL's relationship with the Muskrat Falls project this is an obvious potential conflict of interest.
Then there are the massive paving contracts Coleman has with the provincial government. His company, HVP, secured nearly $60 million in paving contracts in Labrador with the provincial government over the last 2 years - not including 2014. Is a man this deeply involved with business interests in the government able to appear to be impartial in the decision making process for highways and the like? Is he too close? Again, at this time there is certainly a potential conflict of interest.
Finally, there is a somewhat troubling issue for me. Coleman, through his company Coleman Management Services Ltd, and HVP, has been a big donor to the PC Party. It breaks down like this:
2003 - PC Party - $5000.00 (election year)
Tom Marshall - $5000.00
2007 - Danny Williams - $2500.00 (election year)
Tom Marshall - $7500.00
2009 - PC Party NL - $5000.00
2010 - PC Party NL - $5000.00
2011 - Tom Marshall - $7500.00 (election year)
2012 - PC Party - $5000.00
You will note there are large donations to current interim premier Tom Marshall. Marshall other than a year or so from 2006 on, was finance minister for the province. He was in charge of the budget for all departments, including highways. During this period, Marshall and the PC Party accepted large donations while Coleman made large donations. What are the optics of this? What are the legalities of this? Is this the same ol same ol business as usual? Is this what we can expect from Frank Coleman as premier? It's interesting that so far, and I admit it's early, the media here has not cast any light on this at all. A man with an active bid on a Muskrat Falls contract wants to be in charge of the organisation that will make it? Etc, etc. Nothing surprises me when it comes to the cesspool of the PC Party here. However, I thought a man with Frank Coleman's experience would know when and when not to walk into this minefield. My advice to him - back out.
" The Danny Question?
'Danny and I are friends going way back,' he said. 'We've been friends for many years and I discuss my potential candidacy with him and he gave me his advice on what to expect and told me to do what was right for me and my family and for the party.'
Of course that follows Williams' comments on Bill Barry's, of Barry Group, candidacy for the same job:
" Bill Barry would definitely not have my support. Absolutely not... If I see someone like Bill Barry, who I obviously have issues with his policies and the way he handles himself, I'll state that. Otherwise I'm keeping my powder dry for now." He told reporters.
It seems quite clear that Williams, who seems to have a bit of a God complex (my opinion) wasn't quite able to take his own advice of 2007:
"I find it sad when former premiers comment on current administrations...I pray to God that I never do that when I finish politics...I certainly hope that I can make a commitment to the people of Newfoundland and Labrador that I won't provide gratuitous comments or opinions on someone who succeeds you - different times, different circumstances." He said.
Well, so much for Williams taking his own advice, as all he's done since leaving office is offer opinions etc on his successors or potential successors. Be that as it may, he certainly became involved in one way or another with the Coleman candidacy.
However, Coleman has a bigger problem than that. Whether he realizes it or not, or whether he cares or not, Frank Coleman is entering the world of politics, and in politics you have no private life. What you do and have done goes under the microscope, and that's where Coleman is today. In Newfoundland it's a very, very small goldfish bowl.
Frank Coleman heads the Coleman Group of Companies. It's a big organization within the province employing about 750 people. The primary core business for Coleman's is grocery. It also owns companies like Humber Valley Paving (HVP). Its primary company for running the business part of the Group is Coleman Management Services Ltd headquartered out of Corner Brook. Coleman is also involved in real estate, and sits on the boards of a number of companies - most notably Emera Newfoundland and Labrador Inc. ( a company formed for the Muskrat Falls hydroelectric project).
As I see it, there are a number of issues with Mr. Coleman running to be premier of this province. Firstly, and perhaps most importantly, his company HVP has an active bid in for the camp services contract for the Lower Churchill hydroelectric project. Now some erstwhile social media types have indicated a blind trust would solve this potential conflict of interest. They may be right. That would depend on who was in charge of the trust, and all those "devil's in the detail" type of stuff. Let's say everything being equal, the blind trust was sufficient to remove him from the business aspects of his company. The question remains, as it did for Williams and his offshore service companies, can he be truly unmoved by his known interest, and make a decision on the Lower Churchill project which would damage his business? That is known as a conflict of interest. Right now he is in a potential conflict of interest, because he hasn't won the PC leadership, and thereby the premiership, yet.
Then there is his directorship on the board of Emera NL. One would assume he has already reigned fro that position, but as yet I have seen nothing that would indicate that. Given Emera NL's relationship with the Muskrat Falls project this is an obvious potential conflict of interest.
Then there are the massive paving contracts Coleman has with the provincial government. His company, HVP, secured nearly $60 million in paving contracts in Labrador with the provincial government over the last 2 years - not including 2014. Is a man this deeply involved with business interests in the government able to appear to be impartial in the decision making process for highways and the like? Is he too close? Again, at this time there is certainly a potential conflict of interest.
Finally, there is a somewhat troubling issue for me. Coleman, through his company Coleman Management Services Ltd, and HVP, has been a big donor to the PC Party. It breaks down like this:
2003 - PC Party - $5000.00 (election year)
Tom Marshall - $5000.00
2007 - Danny Williams - $2500.00 (election year)
Tom Marshall - $7500.00
2009 - PC Party NL - $5000.00
2010 - PC Party NL - $5000.00
2011 - Tom Marshall - $7500.00 (election year)
2012 - PC Party - $5000.00
You will note there are large donations to current interim premier Tom Marshall. Marshall other than a year or so from 2006 on, was finance minister for the province. He was in charge of the budget for all departments, including highways. During this period, Marshall and the PC Party accepted large donations while Coleman made large donations. What are the optics of this? What are the legalities of this? Is this the same ol same ol business as usual? Is this what we can expect from Frank Coleman as premier? It's interesting that so far, and I admit it's early, the media here has not cast any light on this at all. A man with an active bid on a Muskrat Falls contract wants to be in charge of the organisation that will make it? Etc, etc. Nothing surprises me when it comes to the cesspool of the PC Party here. However, I thought a man with Frank Coleman's experience would know when and when not to walk into this minefield. My advice to him - back out.
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