Labrador Down

I've never been to Labrador before, yet I've fought to stop Muskrat Falls in the courts and outside them for five years. It seemed the right time, and many people there encouraged me to come (see Facebook) so my wife and I set out ready to support the "land protectors" with everything we had. One ominous message on Facebook suggested something different though:

"...he is a politician trying to get attention." That came from Charlotte Wolfrey, Status of Women Coordinator, Nunatsiavut Government.

An interesting statement to be sure. While some may remember my foray into Newfoundland politics back in early 2011 and 2012, I have primarily been focused on defeating Muskrat Falls during and since that time. So I found Ms. Wolfrey's statement a little strange. That being said we arrived in Goose Bay Sunday to lend a hand. Literally within 30 minutes of arriving and chatting with some trappers and other folks at the Muskrat Falls gate an irate lady started tearing into me that she did not want me there. After a fair bit of prodding I was able to find out she also worked for the Nunatsiavut government. I tried to calm her, but she wouldn't leave me alone and followed me throughout the demonstration site day and evening. Shortly after that incident a man named Roy Blake began yelling my name and came after me publicly for sending messages to my friend who was with the land protectors inside Muskrat Falls. He too ended up being an elected member of the Nunatsiavut Government. (he subsequently apologized to me several times which was honourable). However, a certain trend was beginning to stick in my mind.

Perhaps these attacks on me were coming from my opposition to Universal Helicopter ferrying in workers to the Muskrat Falls site while the protesters laboured below to stop workers coming in? That's initially what I thought, but then some other conversations on the side started to point in a different direction. Truthfully, I don't view myself as a person with a high profile. I approach people in that way. People were telling me though that the Nunatsiavut government considered my profile a threat (to their control of the protest apparently). I only relay this story because it points to the rest of the story - the betrayal of Labrador at the hands of its Aboriginal leadership.

You see, the story of Labrador's betrayal lies in control. Control of the many by the few. I spoke to many of the people at the main protest camp and gate and got a good feel for their position. They were worried about their way of life. Period. Hunting, fishing, living off the land. That was their concern. That is why they were there and that is what they were fighting for. However, in the background scurrying amongst the protesters were what I would call "organizers". These organizers were the ones that came after me. Their job, evidently, was to shepherd the crowd about, keep tabs on what was being said and feed information about. In other words, they were controlling it. At least most of it - the Innu seemed quite independent and doing their own thing. Some people complained that Todd Russell was nowhere to be found unless a camera was there, and others were upset that the Grand Innu Chief said Nunatsiavut was simply looking for money by way of an Impacts and Benefits Agreement for the methylmercury poisoning. Mark me down as agreeing with her position on that one.

There is no question that the Nunatsiavut Government used the methylmercury issue, at the last moment, to try and strong arm the government for money (or an IBA as the Grand Chief of the Innu said). They tried to control every aspect of the protest, including criticizing the hunger strikers methods of protesting - which given its effectiveness and popularity was somewhat suspect. Their organizers on the ground shunned the idea of people camping in the flood zone which would have been a much more effective way to protest and stop flooding. A group of Innu finally took it upon themselves to do just that by setting up tents on the North Spur on Monday. Furthermore, the leader of the group of land protectors inside the Muskrat Falls camp was an Innu - David Nuke. From my perspective on the ground the Innu were the least boisterous, but most serious of the aboriginal groups in their opposition. It was evident.

Finally of course there were the "settlers", which basically encompasses anyone living in Labrador that isn't Aboriginal. They didn't get a voice at the table when Ball met with the Aboriginal leaders, yet some of them were the people that originally started the protest. By way of example, David Nuke was asked to give an inspirational speech to the original few protesters by a "settler". That one speech ended up getting him inspired enough to join and in many ways lead the group that entered the Muskrat Falls camp. The bottom-line for most protesters I spoke to was stopping the flooding so their way of life would not be ended. Most were extremely sincere. A few, it was obvious. were cheer leading more than believing.

Then disaster struck. With the backing of the country, and even encouraging statements from the Prime Minister (finally) that science must prevail, the three Aboriginal leaders met with Premier Ball. The result? Catastrophe for the people of Labrador. The flooding will proceed of the initial 25% of the reservoir. The promise? To drain that 25% in the spring if science dictates it should be done. This would be laughable if it wasn't so tragic. It is a known scientific fact that the moment the water becomes trapped in the reservoir, and begins interacting with the soil, that mercury is released from the soil and is converted to methylmercury. That's the science. It's pretty basic. The agreement these leaders agreed to was to unleash methylmercury into the river, and then "possibly" drain that area after the fact and remove the soil and trees. As if somehow there would be no poisoning of the river by these actions. It is bizarre. Here is the demands of the Nunatsiavut President 5 days before the "negotiations" started:

“Unless all vegetation and soil is removed the threat to our health, culture and way of life remains,” he says. “Nalcor should also be directed to delay plans to begin initial flooding of the reservoir (which would see water levels rise from 18 to 25 metres) to allow for the removal of trees, vegetation and topsoil. Initial flooding is expected to take place within days, and once you flood the land the damage has been done. There’s no turning back then.”

"There is no turning back then" His words, not mine, even though it is blatantly obvious to anyone with grade 12 science. Here is the link . Yet, after 12 hours of negotiation he completely capitulated. He wasn't the only one. The Innu and Nunatukavut leader did the same. The promise they received was a spot on an "advisory committee". Having served on an advisory committee federally I know that these committees do nothing more than give advice in the end - which can be totally ignored. Ball said as much when he admitted to the press that the government doesn't give up the power of decision making to advisory groups. Translation: We flood the reservoir exactly as we wanted; we'll think about maybe emptying it in the spring to clear all the soil and trees; and we'll look at what your advisory committee suggests for the rest of reservoir, but no promises as we'll make the final decision. In other words, all the people that protested, went on hunger strikes and generally put themselves out there (including getting arrested) wasted every moment of their time and energy in doing so. They were betrayed at the last minute when they knew their position was strong and determined.

There are only a few ways this scenario can go after this: more compliance or more protest. The people that live along the river, and in the area, will see the end of their way of life unless they want to risk being poisoned. The Aboriginal leaders will have their little advisory committee and no doubt dollars to fund their own contributions to it. The settlers will be stuck in their usual position - afraid to raise objections for fear of being tagged as meddling at best or racist at the worse. Either way, this is the end of something beautiful that Labrador had to offer its people, and others from around world. This is Labrador down.

Quebec Owned Newfoundland

"Owned" in the sense of being utterly defeated by one's enemies. Quebec owned Newfoundland, and now all of Labrador is up for grabs. That was recently thrown out there in a rather arrogant and disrespectful way by former Hydro-Quebec big shot F. Pierre Gingras. A short version of his commentary in La Presse: "Give us "back" Labrador and we'll throw 1000 MW of power to you." The proverbial "crumbs to the vanquished". Words that were meant to send a message to Newfoundland's elite. Or, in simpler terms: "you are done like dinner".

This is no great surprise to me. Rather, it's simply a sad confirmation of the warning I've given over and over to the Newfoundland back room types that have paraded to my door in Hickman's Harbour "for coffee". Yes, believe it or not, the same people that have ridiculed me for half a decade really want to know what I think - just not publicly. I suppose to do otherwise would be having to admit they don't know what the hell they're doing, and need help from the guy they decided to publicly humiliate here. Oh well, the wheel turns. A big thank-you to my wife who barely holds her contempt for them while they sip their Tim Hortons in the living room.

I've always been a Newfoundland patriot. I moved here to be that person. To rediscover my Newfoundland roots, and to offer what I could to the place. I suppose that's what most people do when they move somewhere. For me it was personal though. My Grandmother was a Newfoundlander, and I loved and respected her dearly. However, my Grandfather was a Quebecer, who I never knew as he died before my birth. My father was a by product of both - an Irish home where English was all that was spoken, immersed in a culture of French vs. English politics. I grew up with an understanding of the Newfoundland fighting spirit and the French strategic thinking. Obviously, like any child born in a "mixed marriage", I chose a side that was closest to my heart, and moved to Newfoundland.

That being said, the very first thing I became aware of was the complete lack of strategic thinking in Newfoundland. Essentially all fight and no thinking was the over arching theme I found here. I saw the pied pipers leading the people here down the garden path and right into devastation. Not just financial devastation, but also territorial devastation. The complete abyss. that is the real reason I ran for the PC leadership back in 2011. The uppity come from away who thought he knew better than the Newfoundlanders already in place. It's the same reason I ran for the Liberal leadership a short time later - albeit with more invites to run there than within the PC crew. The bottom line is I was desperately trying to stop what is now taking place today - essentially throwing myself under the bus for the place. That sounds soppy, but the truth is the truth. There will be those that say "Oh Cabana's getting on with his Messiah complex", but I say to them: Who was right and who was wrong. Giving everything means you care enough to.

Now, with the recent decision in Quebec Superior Court (which was predicted and totally predictable), Quebec has its hands at our throats. Williams and Dunderdale always spewed that they had to "break the stranglehold" of Quebec over the development of Labrador, but the reality is they simply handed Quebec our throats. With our Water Management Agreement now utterly useless, and the project still being built, Quebec can hardly believe that Newfoundland's elite has been frankly that stupid. They are rubbing their hands in glee, and mocking Newfoundland now: "Here, we'll throw you that 1000 MW of power you always wanted, now get out of our Labrador". Literally, they are laughing at us, but who wouldn't. Our political elite gave it to them.

Williams recently appeared in the media screaming about Hydro-Quebec visiting the Muskrat Falls site, and warning of a cave in to Quebec. It reminded me of PC leader Paul Davis's warnings during the election that the Liberals would lay off civil servants and cut programs, when in reality he knew full well he left them few options but to. Williams defiant comments that we are " not roadkill" and should not be "on our knees" to Quebec strike the highest note of irony considering it was his "strategic" moves that placed us in that exact position. All totally foreseeable, except for those who refused to see - which was almost everyone in the province.

So now the piper must be paid, and the big question is how. How to recuse a white elephant that may cost $15 billion, and can only produce about 150 MW without that Water Management Agreement that we just lost out on in Court - although the b'ys here still don't have the courage to admit that to the people of the Province. Stan Marshall simply lied in a teleconference about it, and when chased by reporters with specific questions the line for the teleconference suddenly went dead. Dwight Ball hasn't spoken on it once to the media. The greatest court loss in the province's history and no comment. Instead, Williams is right on this one thing, our brain trust are on their knees over at Hydro-Quebec's office in Montreal, and the Prime Minister's office in Ottawa. They're trying to pull the old "come on b'ys, we're loveable, give us a break here, there must be something we can do to make all this go away". The answer came from Gingras: "give us Labrador". We hold all the cards. We own the Prime Minister.

Now all the people of Newfoundland hear is deathly silence. Nalcor says boldly: "we will appeal that decision", and in somewhat more hushed tones "but we will abide by the decision in the mean time". Like they had a choice. The elite in Quebec have set Newfoundland up, and they aren't about to play boy scout and let Newfoundland out of the trap. Harper's gift of a federal loan guarantee was always, and obviously, a poisoned chalice. The man hated Newfoundland. That just wasn't that difficult to see. They handed this province a rope and we hung ourselves - or perhaps more accurately our "elite" hung us for the riches they would receive. The truth is there are now no longer any good options. There are only bad, and really bad options. Surrender Labrador of bankrupt all of Newfoundland and Labrador - then Quebec will come in and pick it up for a cent on the dollar. Surrender the Upper Churchill and Quebec will control Labrador in every way but name. Etc.

There is of course the independence movement in Labrador that is being fanned covertly by Quebec. Most people don't realize that Quebec has its own "intelligence service". It is in every location where Quebec has strategic financial interests - including places like China where Hydro-Quebec is deeply involved. Its service targets the decision makers and influencers in these strategic markets to further its overall goals. One of those very important goals is Labrador. In case you didn't realize it, after the French language, the territorial goals of a "greater" Quebec rank a close second. In other words, Quebec will stop at nothing to take Labrador. To think otherwise is to seriously underestimate the enemy. There is already a great deal of evidence on the ground that Quebec's "intelligence service" is fully engaged, under the radar, promoting Labrador separatism. By the way, check out the recent court decision in Quebec for a hint of where Quebec is at with Labrador. The deciding judge refers to the "Government of Newfoundland" through out his decision. There is no "and Labrador" attached to the title...

For me, I suppose, it was a fight worth having, but you can't help those who won't help themselves. I recall being labelled a "dangerous zealot" by a certain radio host here over my fight to stop what's happening now. When you're labelled that way by those you consider dear, and fellow patriots, it's hard to take anything more from the conversation. I sacrificed financially, and my family sacrificed much more, in the fight to stop this. Now all that is left to do is watch the surrender of our province - which is a hard pill to swallow.

Racism in Newfoundland

Racism is always a tough topic to talk about, because it speaks to the ugly base emotions of the human condition. It is tribalism. It is virulent, and it is widespread here. Of course, Newfoundland is not alone in that department, but it takes a particularly nasty bent here - especially when money is involved. A fairly recent example was the case of Randy Simms, mayor of Mount Pearl and previously a radio show host on the provinces number one radio show. While having a debate with an Innu chief, over caribou herds, Simms referred to Innu people and aboriginals in general as "you people" and that they were "stupid". If you can stomach a tirade. that ought to turn your stomach, I've included two of the rants here . That was the most recent and publicly available example here in the province - until now.

Last week the Nunatsiavut government, representing the Inuit people of Labrador, presented a study conducted by Harvard University, which very specifically stated the Muskrat Falls hydro project would result, among other things, in a 400% increase in methylmercury in Lake Melville. Lake Melville is a massive lake at the bottom of the Churchill River where the Nunatsiavut people hunt, fish, and drink. It's been a critical part of their lives for thousands of years. The report states that under the high (worst case) scenario that once the Muskrat Falls reservoir is filled, with only partial clearing, that up to 66% of Rigolet residents would exceed the USEPA guidelines for safe mercury levels. Currently there are 20% of Rigolet residents that exceed the USEPA standards. Furthermore, the study found that among people living off hunting and fishing may see a rise in methylmercury levels of 1500%. These are some of the points from the study. I've included it here.

Under normal circumstances Newfoundlanders would be lightening quick to denounce the poisoning of woman and children. There would be outrage. There would be screaming and condemnation in the House of Assembly - if for no other reason than to score political points. Case in point the fracking fiasco at Corner Brook. Community outrage at having fracking drilling conducted near their watershed caused the development to be stopped in its tracks. An example of the outrage is a quote from a local opponent:

"When the health of the community is at stake, when mothers have to give their children water near fracked wells, there should be a scientific consensus that the practise is safe... Why would you experiment with the health and safety of our children and not your own?

Great words and sentiment, but one problem - the government never reacted when the Inuit said the same thing after the monumental Harvard study. In fact, the public never reacted either. In fact, not one word or one question was raised in the House of Assembly about the study be the world's foremost expert on the effects of methylmercury from Harvard. There were a few short stories in the media that covered the Nunatsiavut press conference. Then nothing, except the three daily radio shows whose hosts tried to enlighten people on the issue.  However, the three open line shows were almost devoid of any talk from people calling in about the poisoning of the Inuit. By the way, the Innu would also be poisoned in a similar if not worse fashion as they live closer to the dam site.

I was shocked, ashamed, and embarrassed at the members of our House of Assembly. Ordinarily, such a report would provoke a furor. The only reasonable explanation is they just don't care enough to even bring the matter up. Why don't they care? Because it's just a few "natives" up in Labrador. Racism. Pure and simple. there is no other explanation. Even the NDP, in their third party status, couldn't muster up a single question. No outrage. No questions. As if it never even happened. There is currently a petition on line requesting Labradorians separate from the province. Is it any wonder? The Inuit, Innu, and Nunatukavut (Metis) peoples form a good portion of Labrador's population, and an even greater share of its landmass. Yet this is how they are treated by the white folks down in the pearly gates of the House of assembly in St. John's. Is it any wonder they may want to leave so they can protect themselves from the townies? Newfoundlanders would be no different, and the Newfoundland government would scream bloody blue murder if the federal government did the same to them, and have. Racism is ugly. Racism justified by nationalistic dam projects is even uglier. It's evil, and it's unforgiveable.

EPILOGUE - Randy Simms, the man who made the racist tirade, ran for the Liberal Party here in 2015, lost, and word is he's been hired by the Liberal Party as a policy strategist...

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."





 








 

Part 5 - All the King's Men - Brian Tobin

This series, All the King's Men, casts a light on the dark corners of Newfoundland and Labrador politics. In most cases that involves the provincial PC Party, but not always. In fact, it's a mistake to think that one party is pure as the driven snow, while the other swims in corruption. The truth is that politics within the province is run by a very few - hence the name of this series. That group of people can swap their financial support around as conditions for them require, and capture the party they need to advance their agenda. In other words, the back room boys of the province.This post involves such a story, and the Liberal party of the province.

In 2011, Liberal leader Yvonne Jones was ill with breast cancer, and being treated with chemotherapy. Speculation ran rampant that she would be unable to lead the party in the 2011 general election. Yet, despite her condition, Jones insisted she would run. In July, 2011, an apparent attempt to have her step down in a deal put forward by Dean MacDonald was openly denied by both parties. http://www.polemicandparadox.com/2011/07/as-provincial-politicians-hit-summer.html
Despite her denials to the contrary, Jones resigned the next month with mere weeks left before the election was to be held. She left the party with a large debt, and no prospects for raising money to run an election campaign.

In the ensuing leadership contest, which amounted to executive board interviews of seven potential candidates, myself included, Kevin Aylward was chosen. Aylward had placed his name on the ballot approximately 20 minutes before the cut off to do so. Aylward, a former cabinet minister and president of Nunacor (a resource/mining arm of the Nunatukavut community in Labrador) was "lucky" enough to have former premier Brian Tobin step up, and hold a fund raiser for the provincial party in Toronto to help pay for the election. Leading up to this time, the provincial Liberals had fought tooth and nail to stop the Muskrat Falls project. However, all that was about to change as noted in an earlier post http://rocksolidpolitics.blogspot.ca/2012/05/muskratmines-and-railways-liberally.html

As the saying goes, to figure out the behind the scene machinations you need to follow the money trail, and this case was no different. When Tobin left public political life, and the spotlight of the cameras, he became immersed in the corporate world. Specifically mining in Labrador - among others. When he called a group together in Toronto for donations, to the provincial Liberals here, that influence was quite obvious. Here are the people/companies that answered Tobin's call:

AECON Construction Group Inc

$10,000.00

Tobin sits on the board of directors of AECON, a large international construction company. However, AECON is also on the bidding list for construction of Alderon's Kami mine project:

Mine pit development, and tailings dam.

Municipal Enterprises Limited

$10,000.00
Municipal Enterprises owns Municipal Construction, which in turn owns Dexter. Dexter is bidding on Alderon's Kami mine project as well:

Bid 1 Clearing, grubbing mining, and maintenance areas and construction access; and

Bid 2 Mine pit development and tailings dam.

Sam Bharti

$10,000.00
"Sam" Bharti, as listed on the contribution list of the province, is actually "Stan" Bharti, owner of Forbes and Manhattan Group of Toronto, and the main driving force behind the creation of Alderon and the Kami project.

Bernard Wilson

$1,000.00
Wilson is a Forbes and Manhattan man, and sits on a number of its companies boards: Aberdeen International; Avion Gold; and Valencia Ventures Inc.

John Vettesse

$10,000.00
Vettesse is a partner with Cassells Brock law firm in Toronto, and a director/shareholder of Alderon.

Gemma Communications

$10,000.00
Gemma Communications is a subsidiary of Tuckamore Capital Management run by Dean MacDonald.

Magna International

$5,000.00
Tobin served as Vice-Chair and director of Magna.

Norvista Resources

$10,000.00
Norvista is a mining resource company out of Toronto that Tobin sat on the board of.

Energizer Resources

$5,000.00
Energizer is a mining resource company out of Toronto that Tobin was Chair of its Special Advisory Committee and a shareholder.

John Marinucci

$1,000.00
Toronto businessman, friend and former class mate of Tobin.

Vincent Sardo

$1,000.00
Toronto businessman, and director of Thompson Consolidated Iron Mine - which Tobin ran.

GMP Securities

$2,000.00
Toronto financial company that represented Alderon in securing its financing agreement with Hebei Steel of China for the Kami Mine project.

Douglas Bell

$4,000.00
Vice Chair and Co-Head of Investment Banking at GMP Capital - the parent company of GMP Securities, which acted for Alderon with the Chinese.

George Albino

$2,000.00
Gold and Precious Metals Expert, GMP Securities.

Roy D'Ambrosio

$2,000.00
"Roy" as listed on the contribution list of the province, is actually "Roy". Managing Director of GMP Securities.

NOTE - Combined totals of GMP and its officers is $10,000.00 - which mirrors the others.

BMO Nebitt Burns Inc

$5,000.00
Tobin currently sits as Vice-Chair, significant institutional owner of Alderon shares, bank for the Innu Trust Fund, Labrador.

Jason M. Attew

$1,500.00
Director, Global Metals and Mining, BMO Capital Markets.

William Butt

$2,000.00
Head of Investment and Commercial Banking BMO (now retired).

John Sabine

$1,500.00
Lawyer at Bennett Jones in Toronto -  Mining, Finance and Mergers. Sits on the boards of a number of mining companies.

On the face of it, one could say Tobin came to the rescue and saved the provincial Liberal party from a dim financial performance in the 2011 election. Certainly that is the view of some. However, there is also another side to this equation.

For starters, Yvonne Jones suddenly became a proponent of the Muskrat Falls project and its use for mining companies in Labrador. She also became a big cheerleader for developing mining companies in Labrador, and even a proponent of a Labrador railway (which is necessary for Labrador mines to ship their products to Quebec ports for export). Is that all a coincidence? It certainly represented a sudden and major shift in her public stances. To this day, and despite the fact she is a federal MP now, Jones frequently interjects on matters that are considered provincial affairs in Labrador, and they often involve mining and power in Labrador.

The Liberal Party itself has substantially toned down its opposition to the Muskrat Falls project, and has also been a major proponent of mining developments in Labrador. All of this begs an obvious question: Did political contributions change the tune of the provincial Liberal Party? It's hard to say. You can judge for yourself. This series has focused on the influence of corporate donations to political parties in the province, and in my opinion this particular case is no different than any of the others. As Stan Bharti, the head of Forbes and Manhattan and donor above, once said:

"To minimize risk, we do two things. We always have a very strong local presence. Local people, local officers, local connections. We also make sure that at a political level we have some good connections... I sometimes tell people you can either buy political insurance, or you can have a good local person."

To Dwight Ball, the new leader of the Liberal Party's credit, he promised to introduce political donation reform as part of a democratic reform package for the Party in the 2015 general election. Ridding the province of corporate and union donations is the only way to clean up our democratic system here. It is long overdue. It is banned at the federal level, and is only allowed in three of ten provinces. Ridding ourselves of this will alleviate the need for companies to, as Bharti says:

"buy political insurance."

Alderon's Muskrat Falls Headache

A few weeks ago, Alderon Iron Ore Corp's Mark Morabito went "off his head" during a radio interview with VOCM during an open line radio show. He blasted the provincial government for not passing the environmental process for the Kami mining project in Labrador. He also criticized the failure of Nalcor and the government to sign a power supply agreement and build a $150 million power line system from the Upper Churchill to Lab West (and his mining project). Clearly, that line and power purchase agreement are crucial to the mine moving ahead. Here is an excerpt from Alderon's subsequent press release:

" We were informed of the status of power and various other files under review by the Provincial Government. Following our discussions with the Minister and his officials, we are confident that these matters are being pursued diligently and expeditiously, " says Tayfun Eldem, President and CEO of Alderon. " The Government's approval to build the power line is crucial to Alderon securing the previously announced debt financing and we are pleased that the Premier has expressed her support for the power line." 

"Is crucial..to securing...financing." Interesting. All along the story about Alderon and Muskrat Falls has been Alderon doesn't need Muskrat Falls power unless it doubles its production down the road. Now it is suddenly necessary for financing. Of course. Alderon is calling it the "line", but the bottom line is Nalcor has no excess power to send on that line, so it would have to be power created at Muskrat Falls, and relayed through the Upper Churchill, and out to Lab West (and the mine). FYI on the environmental study issue - Alderon has to pay its Chinese partners $3 million a month for each month the approval fails to come through starting January, 2014 (which is now).

So, given the heavy weights behind Alderon, and all the dollars involved, how is it that Nalcor hasn't committed to the power line and a power supply contract to Alderon yet? According to earlier statements the price pure kilowatt hour has been agreed to. The problem is in the amount of power to be supplied. The answer lies in the Power Contract of 1969, and the Water management Agreement.

All Nalcor's, and the provincial government's plans involved implementing the WMA, which would allow Nalcor to take over the operation of the Upper Churchill. With that control, Nalcor could take power almost at whim from the Upper Churchill, and redistribute it as it wanted. For Alderon that would mean a secure power source. Whether Alderon's early founders Forbes and Manhattan were sold a bill of goods on the validity of this plan is uncertain. Who sold them on it? Williams? Altius? Both? It's hard to say right now. When push came to shove, and all the glossy pictures and back slapping were done, reality hit home. 

Hydro-Quebec filed suit, which will be heard January 20, 2014. That is a suit Hydro-Quebec is going to win, and when it does, the WMA is not worth the paper it is written on. What does that mean for Nalcor? It means Nalcor will not be able to take 1 MW of power from the Upper Churchill, other than the recall they already have (and is fully consumed). Nalcor knows this. They are playing a very dangerous, and frankly stupid, game of chicken with Hydro-Quebec that we can not win. 

What does that mean for Alderon? It means Nalcor can not commit to the power supply, and therefore it means there is no rationale reason to build a $150 million power line system. Unfortunately for Alderon, it has already used the credibility of Forbes and Manhattan's Chinese connections to make inroads - and promises. Now those promises are in serious doubt. Loss of face with the Chinese is a very, very bad thing.

In some ways there is a little poetic justice here. Danny Williams, the former Premier that brought in all the legislation that is now before the Court in Quebec, is also a main player in Alderon. Now his own legislation is hurting Alderon's chances of getting off the ground. Mean while, Dunderdale and company sit on the environmental application, likely as an out for them. It's all a bit of devilish karma coming to bite some people right in the arse. It begs the question: does Alderon have a Plan B to buy power from Hydro-Quebec, and if not why not? Politics is best suited divorced from the board room.

Muskrat Falls Math - into the Abyss

I have yet to read an article that attempts to tackle the complete Muskrat Falls "integrated business case", including especially the costs and returns it is designed to provide. So it's time to tackle that head on.

This week VP Gilbert Bennett, Nalcor stated the average production for Muskrat Falls is estimated at 510 megawatts (MW). That should be a big wake up call for people. Up until now Nalcor and the government had been holding fast to the full production capacity of the planned dam - 824 MW. That represents a 38% decrease in expected production from the Muskrat Falls facility. Ordinarily that would kill a project immediately, but the government has other plans. I'll get to that in a bit, but first the actual production costs compared to the returns for our treasury.

Back a year ago our now departed Minister of Natural Resources, Jerome Kennedy, stated in the House of Assembly that the cost of power produced at Muskrat Falls would be $.25 a kilowatt hour (kwh). That was based on production of 824 MW. That was to break even, and before costs associated with transmitting to Nova Scotia were factored in, and without cost over runs. 824 MW of power equals 4.9 terawatt hours, or 4.9 million megawatt hours of energy per year, or 4.9 billion kilowatt hours - for the purposes of this article we will stick with kwh.

So, if Muskrat Falls could produce full power, full time, it would produce 4.9 billion kwh at an annual cost of $1.225 billion - to break even (remember that number). That is to Soldiers Pond. As the energy converts from DC lines to AC lines, travels under the Gulf, and does that process again, it loses about 5% (conservatively) of it's energy on each end. Then there are the transmission fees Nalcor has to pay to Emera to send power across the sub sea line, etc. I'm not even going to factor that in to keep things semi-clean.

So, the annual budget necessary to run Muskrat Falls at a break even point is $1.225 billion. That doesn't change now that the average production, according to Bennett would be 510 MW per year. What it does mean is the cost per kwh goes from $.25 per kwh to $.40 per kwh. That is bad. Very bad. Now that $.40 per kwh has to be blended into Nalcor's already existing energy production (Churchill Falls is not included - explanation later) of 1850 MW or 11 billion kwh. Right now rates differ depending on where you live in the province and whether or not you are business or residential. Based on stated gross electricity sales of $520.7 million for 2012, the average price per kwh for power is 4.7 cents per kwh ($100 million of that $520.7 million is heavily subsidized Labrador and Industrial customers). 

Blending the current rate with the Muskrat Falls rate puts the new average rate at 13 cents per kwh or 300% higher than the current average rate. Of course that number includes industrial and Labrador clients.

Here is the hitch. All the numbers above are based on the Water Management Agreement being legal/constitutional. Without the Water Management Agreement, Nalcor stated in pre-filed evidence with the PUB, that Muskrat Falls could only run at 20% capacity. This issue is before the Court in Quebec - it will be heard on January 20, 2014. It is also before the Court here with yours truly. What happens if/when the obvious happens and the Water Management Agreement is thrown out?

Well, it changes the numbers radically. That takes the average production at Muskrat Falls down to a mind blowing 102 MW - or 607,142,857 kwh. To put that number into focus, the average price per kwh for Muskrat Falls energy would have to be $2.02 per kwh - by far the most expensive power on the planet by a landslide. In 2012 Nalcor generated that $520.7 million in revenue on 1850 MW. Now it's looking to generate an additional 102 - 510 MW for $1.225 billion a year. The math is pretty clear.

Of course Nalcor is, according to the Premier and Gilbert Bennett, planning on taking 1500 MW a year from the Upper Churchill starting in 2016. Seems they have been taking additional power from the Upper Churchill since June 2012 according to Hydro-Quebec (which is apparently why they filed suit). If that plan was actually legal the additional revenue, based on an average of 6 cents per kwh (the average spot price for 2012) would give Nalcor an extra $534,600,000.00. The Government and Nalcor have been spinning the line that Muskrat Falls will make $400 million in revenue. Seems they are depending on taking that "extra" power from Hydro-Quebec. Like I said, if it was legal then it would be great. It just isn't though. Even Nalcor own 2012 Financial Report states all the power, but recall, "generated at the Upper Churchill" belongs to Hydro-Quebec.

Just one last thing. If Muskrat Falls is projected to generate 510 MW Nova Scotia wants about 300 MW of that power at spot market prices, plus the 25% of generation it gets for free. My math has that total commitment to Emera being 427.5 MW for a blended price to them of 4 cents per kwh - about the same price they have promised to Labrador mining companies. Obviously, the government is not building a dam to give all but 82.5 MW to Nova Scotia. They need that Water Management Agreement to take that additional power from Hydro-Quebec or their deal with Emera is finished. All the economics, and therefore the project, rely on the Water Management Agreement. Bad as Muskrat Falls is for the taxpayer/ratepayers of Newfoundland and Labrador, the death of the Water Management Agreement is a step into the abyss if we continue to build...

The Battle in Labrador Heats Up

Todd Russell,President of Nunatukavut, being arrested

at Muskrat Falls protest 5 April 2013

 

You won't see the picture above on any of the main media outlets in Newfoundland and Labrador. Yet this was the scene yesterday when the duly elected President of the Nunatukavut was arrested 10km from Muskrat Falls for interrupting traffic with 20 or so followers. The purpose of their action was to draw attention to the fact that they have not been consulted or accommodated about the Muskrat Falls project despite it being within the territory they claim.

 

It's a tale of three nations really: the Innu of Labrador; the Nunatsiavut; and the Nunatukavut. They are the Aboriginal peoples of Labrador.

 

THE INNU OF LABRADOR

 

 

                                                   Peter Penashue, Innu of Labrador

 

The Innu of Labrador, and specifically an organization called the "Innu Nation" are the subject of a three part series coming up on this blog. In the meantime, you can think of the Innu of Labrador as "haves" and "have nots". The "haves" are a very few families that control all the business done in Innu territory and the workings of the Innu governments - that will also be detailed in the series. The have nots are almost all the rest of the Innu. Stricken by third world poverty, and every social ill you can imagine, the "have nots" have been left to fend for themselves. Of course, there are also many Elders in the Innu community that are very hesitant about the new development mentality sweeping the "haves" along. They stand in their place to defend ancient responsibilities to the Land and the animals. Perhaps the best known being Elizabeth Penashue, the mother of the man above - Peter. Polar opposites in values, ideals, and how to get there. Ancient responsibilities versus one ancient problem - greed.

 

                                          

                                                                   Elizabeth Penashue

 

Bottom line - we never saw Peter Penashue dragged across the streets by police like a common criminal. No. He went the other way. Deals with corporations, deals with politicians, etc. They needed him on board for Muskrat Falls, and yet he is now the one facing a possible criminal action as well. His obvious breach of Elections Canada laws, as noted in the previous posting on this blog, should land him in a pair of handcuffs - although nobody deserves to be dragged. His handcuffs will not be chains restricting his freedom to protest. No, they will be chains restricting him from further breaking the laws of democracy.

 

THE NUNASIAVUT

 

 

                                                                 Sarah Leo, President

 

The Nunatsiavut, or Inuit, are the only native peoples in Labrador to actually have a government - established by the only finalized land claim agreement in Labrador. Their primary emphasis is on individual and community health. By way of example, the Nunatsiavut government is conducting, and funding a study of the impact of mercury poisoning in Lake Melville and estuaries within their boarders. They are doing this without any assistance from the provincial government, and in many ways against the provincial government. Their waters have been poisoned by the Upper Churchill dam, and they are rightly concerned about it becoming even worse with two more dams proposed for the Lower Churchill. Not surprisingly they are not partnered with large corporations or governments in many if any cash producing schemes. They remain focused on their people, and not the almighty dollar.

 

It's a tale of three peoples, three leaders, and three different approaches. The three part series on the Innu Nation will show this in dramatic and shocking form.

 

The question in my mind remains: How can it be that the elected leader of his people, a former Member of Parliament in his own right, be handcuffed and dragged through the streets like a common criminal? Did that happen to any other Aboriginal leaders during the "Idle no more" protests? The answer is no. So why did it happen to President Todd Russell? Are the Nunatukavut somehow less Aboriginal in the minds of the Newfoundland and Labrador government? Are Aboriginals less respected in Newfoundland and Labrador than other provinces? Is Nalcor's determination to build Muskrat Falls more important than basic human rights? The answer to all three of these questions is yes.

 

One last, but not least, mention. Jim Learning, Nunatukavut Elder and Veteran was arrested along with Todd Russell yesterday. He was also arrested a short while ago for walking down the Muskrat Falls access road without permission from Nalcor. He has been left in jail for the weekend and word has it he will be there until next Friday. His crime? Disrupting traffic to Muskrat Falls. On his own Aboriginal land. Jim Learning refused to sign a statement he would not return to do the same again. So they left him in prison. Jim Learning is a Veteran, an Elder, in his seventies, and a man of conviction - a hero. Thank-you Jim.

 

 

                                                         Jim Learning, Hero, Inspiration

 

 

 

 

The Benefit of the Doubt - Penashue

So the inevitable finally happened and Peter Penashue fell on his sword - resigning last week as both Minister and Member of Parliament. His faithful campaign manager, dutifully appointed to a plum post as director on the Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB), followed suit and resigned his plum appointment. It appears to be an attempt to pre-empt the release by Elections Canada of its report into electoral fraud involving the Penashue's election as member for Labrador. Of course, we have all heard him blame the fiasco on a well-meaning, but inexperienced campaign manager. However, do the facts really back that claim?

To start with there is the story from Aboriginal Peoples Television Network(ATPN). They broke the story of the many inter-linked business interests of Peter Penashue's family surrounding Muskrat Falls, and senior executives of Pennecon Limited http://aptn.ca/pages/news/2012/11/29/penashue-faces-questions-over-family-business-ties-to-labrador-hydro-project/ . A sort of "common-law" marriage if you will.

Then there is Mr. Reginald Bowers - the "inexperienced but well meaning" campaign manager/business manager of Mr. Penashue's electoral endeavour. Bower may be many things, but inexperienced is not one of them. His CV includes a Bachelor of Commerce degree, a senior accountant for David G Curtis and Co., a comptroller for Woodward Group of Companies, and VP of Finance and Administration for Fahey Group of Companies. Not exactly someone with no ability when it comes to finances if you get my drift. When it comes to connections the Masonic Order is the place to be for many, and Bowers founded the Masonic Lodge #17 in Happy Valley Goose Bay. He was big when it came to the provincial PC's as well. According to his official bio, Bowers has been a director of the Lake Melville area PC Association since the early 1990's. He even pulled off a double term as a director on the Board of the College of the North Atlantic (a plum provincial political appointment), along with Gilbert Bennett of Nalcor Energy.

A quick look at the PC donors to the last provincial campaign in Lake Melville district reveals an almost completely corporate dependent campaign. A number of those donors are people that Bowers would have been involved with in one way or another - including Provincial Airlines. It would seem that the provincial PC machine in Lake Melville decided to get behind Penashue for his bid to go to Ottawa, and everyone fell into line.

Then in October, 2012 the CBC broke the story that Penashue's flights throughout the election had been illegally subsidized by Provincial Airlines. Then, the CBC wrote a story that:

" Six executives of Pennecon made donations to Penashue's 2011 campaign in the riding of Labrador, with the donations arriving just after he had been elected, according to Elections Canada records.

Chairman Ches Penney made a donation of $1,100, the same amount donated by several others at the company. Two donated $550 each. The limit for a personal donation during the 2011 campaign was $1,100."

Remember those late arriving donations.

The Innu Development Limited Corporation, run by Penashue's brother-in-law Paul Rich, chipped in a $25,000.00 interest free loan - which is illegal. In addition, CBC News calculated Penashue had overspent his campaign limit by about 21 per cent. Now Elections Canada has said there were a total of 28 unlawful donations. I use the words unlawful, and illegal, because the donations were in violation of the law - the Elections Act. Now Penashue is blaming Bowers, and Bowers is claiming ignorance. But are these excuses credible? No, they are not.

EXHIBIT ONE:

From the Huffington Post, July 24, 2012:
" Bowers wrote that he checked all expenses with Conservative Party advisers and Elections Canada "and somewhere I got the understanding that all travel within the riding was considered personal expense and not governed by the cap on expenses."

EXHIBIT TWO:

From the CBC, November 29, 2012:
" In a statement, Penashue's office said that his campaign staff had a full understanding of the rules.

"The minister was very clear during his campaign that no corporate donations would be accepted, and that donations to his campaign were to be personal donations made by individuals," the statement said.

Although the story is changing now to one of ignorance of the rules, it is clear from Bower's and Penashue's earlier statements to the press, when the story first broke, that they were both fully aware of the rules, and that corporate donations were not to be accepted. Given that, it is impossible for both to have signed the return not being aware that corporate gifts in kind were illegal and corporate donations were illegal.

It is also apparent that a cover up of those expenses was attempted. In particular, it is now known that a deposit slip from Pennecon was recorded by the campaign in the same amount that its executives were retroactively given receipts for. In other words, it appears the campaign attempted to whitewash the donation by Pennecon by issuing receipts to its executives. It is also worth questioning why Pennecon or its executives did not question receiving receipts for donations they did not make, or made and did not get a receipt for making.

The waters are murky with questions, but one that isn't in doubt is that everybody knew the rules, and some made deliberate attempts to circumvent them. No doubt the effort to get Penashue elected was of paramount concern to some people/corporations, but why? That will come out in the wash as they say, but here is an interesting nugget for you to chew on in the meantime.

IT STARTS LIKE THIS:

INNU/SNC-Lavalin Partnership

In February of 2008, SNC-Lavalin Inc. (SLI) entered into an agreement with Innu Development Limited Partnership (IDLP) to establish Innu/SLI Partnership, the purpose of which is to pursue engineering and project management opportunities for projects taking place on Innu lands and other areas of Labrador. Other business ventures jointly pursued include procurement, construction management services, power generation/transmission, industrial process, environmental services and architectural design. The intent of the relationship is to maximize benefits to the Innu People resulting from these projects. The partnership maintains and operates an office and related support infrastructure in Goose Bay.

IT GOES ON LIKE THIS:

Innu SNC Lavalin Inc.

Map data ©2013 Google - Terms of Use

Box 119
Sheshatshiu
NL
A0P 1M0
Contact(s): Brian Corbin
Mobile: 709-897-7601
Email: brian.corbin@snclavalin.com
Albert Williams
Email: albertwilliams@snclavalin.com
General partner:

BAE .Newplan Group Ltd.
1133 Topsoil Road,
Mount Pearl, NL A1N-5G2
Phone: 709-368-0118
Fax: 709-368-5410

Contact: Albert Williams
Email: albertwilliams@snclavalin.com

Innu partner: INNU DEVELOPMENT LTD. PARTNERSHIP
P/O Box 449,
Sheshatshiu, NL A0P 1M0
Phone: 709-497-3670
Fax: 709-497-3677
Core business:

1. Project management
2. Engineering Services

IT INVOLVES THIS:

Exhibit Title Prepared by Dat

CE-15 Rev.1 (Public)

Muskrat Falls Hydroelectric Project, MF 1010 – Review of

Variants SNC Lavalin March 2008

CE-16 Rev.1 (Public)

Muskrat Falls Hydroelectric Project, MF 1050 – Spillway

Design Review SNC Lavalin December 2007

CE-18 (Public)

Muskrat Falls Hydroelectric Project, MF 1250 – Numerical

Modeling of Muskrat Falls Structures SNC Lavalin May 2008

CE-19 (Public)

MF 1300 – Muskrat Falls 2010 Site Investigation, Volume

1 SNC Lavalin June 2011

CE-20 Rev.1 (Public)
MF 1310 – Muskrat Falls Site Access Review SNC Lavalin February 2011

IT CAUSES A CONFLICT OF INTEREST WITH THIS:

http://www.releases.gov.nl.ca/releases/2008/exec/0926n07agreement.pdf

In other words, while Penashue was busy negotiating the New Dawn Agreement on "behalf of the Innu people of Labrador" his organization already negotiated a side deal with SNC Lavalin who, at the time, were primary contractors in the development of the Lower Churchill, and had a business relationship with the Government of Newfoundland and Labrador. In fact, Penashue was in so many conflicts of interest it's hard to keep track of them all. Given SNC Lavalin's current international, and national disgrace over corporate corruption, and given the many links between it and the Innu, there are reasons for serious questions to be asked. However, the bottom line is Penashue negotiated and signed an agreement (the New Dawn Agreement) that cleared the way for members of his family, if not himself, to be greatly enriched - especially including the Impacts and Benefits Agreement.

Is Penashue an innocent victim of an incompetant manager? Does an innocent person place themselves in these types of conflicts? Do they try and cover them up when exposed by the media? Are they innocent if they admit they knew the rules and then broke them for their obvious benefit? There is nothing innocent about this story. It's an all too familiar politics. Should there be further investigations into the role of the Innu Nation, and its subsidiaries? Without a doubt. Were the Innu people of Labrador betrayed by the interests of their elite? That question could be answered in a full, and over due RCMP investigation of the operations of the Innu Nation, and most certainly its subsidiaries. For now it's just a question. Does Peter Penashue deserve the benefit of the doubt? Absolutely not. 

 

 

UPDATE

 Here is the complete list of original donors to Penashue's campaign. Thank you to those that provided it.

 

First List Submitted

 

 

 

Modified List (the scratched out are names ruled to be illegal and for which Penashue's campaign reimbursed the feds)