Lobbyists linked to Raitt fundraiser found in breach of code

Press Release - Office of the Commissioner of Lobbying / Communiqué - Commissariat au lobbying du Canada

Feb 16, 2011

 

Commissioner of Lobbying Finds Three Lobbyists in Breach of the Lobbyists' Code of Conduct

 

OTTAWA, ONTARIO--( Feb. 16, 2011) - Karen E. Shepherd, Commissioner of Lobbying, tabled three reports today in both Houses of Parliament on the activities of three lobbyists.

In all three cases, the Commissioner found the lobbyists were in breach of the Lobbyists' Code of Conduct. She concluded that Bruce Rawson did not register lobbying activities performed on behalf of two clients. The Commissioner also found that Will Stewart and Michael McSweeney created an apparent conflict of interest by conducting fundraising activities for a federal cabinet minister whose department they were lobbying.

 

"These reports show there are consequences to breaching the Lobbyists' Code of Conduct," said Commissioner Shepherd. "The Stewart and McSweeney cases are groundbreaking, as they are the first ones since the Federal Court of Appeal's decision in March 2009 that provided a new interpretation of Rule 8 of the Code."

 

The purpose of the Lobbyists' Code of Conduct is to assure the Canadian public that lobbying is done ethically and with the highest standards, with a view to increasing public confidence and trust in the integrity, objectivity and impartiality of government decision-making.

 

The Lobbyists' Code of Conduct is an integral part of the disclosure and ethical requirements that apply to all lobbyists. Breaches of the Code carry no fines or jail terms.

Please consult the reports for further details.

 

Backgrounder

 

Three Reports on Investigation Tabled in Parliament

 

Bruce Rawson

This case involves paid lobbying conducted by Mr. Rawson on behalf of two British Columbia mining companies dating back to 2004. In June 2006, the Registrar of Lobbyists determined there were reasonable grounds to believe that a breach of the Lobbyists' Code of Conduct had occurred and commenced an investigation. The RCMP earlier that year had determined it would not be proceeding with an investigation under the Lobbyists Registration Act. The current Commissioner of Lobbying inherited this case when she took office and completed her investigation in late 2010.

 

The Report concludes that Mr. Rawson engaged in activities that required him to register as a lobbyist when, for payment, he arranged client meetings with public office holders. By failing to do so, he was in breach of the Principle of Professionalism, Rule 2 (Accurate Information) and Rule 3 (Disclosure of obligations) of the Lobbyists' Code of Conduct.

 

Please consult the report for further details.

 

Michael McSweeney

Michael McSweeney is an in-house (organization) lobbyist employed by the Cement Association of Canada (CAC). He helped organize a fundraising dinner in September 2009 for then Minister of Natural Resources, the Honourable Lisa Raitt. The Commissioner initiated an administrative review to look into the file and she also received complaints from Parliamentarians and Democracy Watch to look into the matter. In July 2010, following an administrative review, the Commissioner commenced an investigation of the matter.

 

The investigation concluded that Mr. McSweeney played a role in the organization of the event by selling tickets. During the same period of time, Mr. McSweeney was registered to lobby on behalf of CAC in respect of subjects that fell within the purview of the Minister, and communicated with her directly in respect of registrable subjects.

 

In view of this, the Commissioner concluded that Mr. McSweeney's actions placed the Minister in an apparent conflict of interest and he was, therefore, in breach of Rule 8 of the Lobbyists' Code of Conduct.

 

Please consult the report for further details.

 

Will Stewart

During the course of the administrative review of Michael McSweeney, the Commissioner was made aware that another lobbyist had played a role in organizing the same fundraising event for then Minister of Natural Resources, the Honourable Lisa Raitt. Mr. Stewart was a consultant lobbyist with undertakings on behalf of various clients. The Commissioner commenced an investigation in July 2010. The investigation concluded that Mr. Stewart played a major role in the organization of the event, including selling tickets.

 

During the same period of time, Mr. Stewart was registered to lobby on behalf of various clients in respect of subjects that fell within the purview of the Minister, and communicated with her directly in respect of registrable subjects.

 

It is the Commissioner's conclusion that his actions placed the Minister in an apparent conflict of interest and he was, therefore, in breach of Rule 8 of the Lobbyists' Code of Conduct.

 

Please consult the report for further details.

You may be aware that the Commissioner of Lobbying recently released a report in which she found that one of our principals, Will Stewart, breached Rule 8 of the Lobbyists' Code of Conduct by placing a Minister in an apparent conflict of interest. We would like to take this opportunity to clear the air: 

Will Stewart, Navigator Ltd. and Ensight Canada have always been and continue to be in full compliance with the Federal Accountability Act. We are proud of our record of compliance and ethical conduct. In fact, we are the only firm in the industry with a permanent accountability auditor Julian Porter. 

 In the decision, the Commissioner acknowledges that following the decision of the Federal Court of Appeal in an unrelated case striking down the previous interpretation of Rule 8 of the Lobbyists' Code of Conduct, there was "some uncertainty" for lobbyists. She further states that it may have "been difficult for [lobbyists] to determine the point at which their political activities may have implications for their lobbying activities." The Commissioner nonetheless goes on to find against Mr. Stewart. 

 Given this retroactive interpretation of the guideline, we find the Commissioner's decision manifestly unfair. We are supported in that view by an opinion from Neil Finkelstein of McCarthy Tétrault, one of Canada's foremost constitutional lawyers, which states that: 

 Mr. Finkelstein concludes that, in his view, it is likely that a court would set aside the decision of the Commissioner on judicial review. Navigator Ltd. will now review whether or not to apply for such a review.

 

Legislative Review of Lobbying Act must clear up (& discard), Rule 8. On other hand, throw the book @ unregistered lobbyists. #cdnpoli

Lobbying Commissioner's findings http://ow.ly/3XQDP are troubling. My personal opinion is Rule 8 is unconstitutional! #cdnpoli #lobbying

"Lisa Raitt and her riding association acted unethically by allowing Michael McSweeney to organize a fundraising event to help in her re-election campaign. She met with Michael and recommended him to submit an application for the Clean Energy Fund, and promised him funding as the Fund is under her then Ministry of Natural Resources.

"Today, the Commissioner of Lobbying, Karen Shepherd found McSweeney lobbying and fund raising activities placed Raitt in a conflict of interest and that he was in breach of the Lobbyists' Code of Conduct.

The Commissioner finding is another example of Harper's Conservatives taking care of insiders instead of ordinary Canadians, and can't be trusted in running an open, accountable and clean government."

Dawson noted in her report that the project pushed by McSweeney was not funded. 

In response to a request for comment, Raitt's spokesperson in an email again referred to the Ethics Commissioner's May 2010 report: 

"Minister Raitt has and continues to follow all of the rules.

"We thank the Lobbying Commissioner for her report, and note that it is another example of our Conservative government's approach to ethics and accountability.

"The Ethics Commissioner is clear in her report that 'Ms. Raitt did not contravene the Conflict of Interest Act (Act) or the Conflict of Interest Code for Members of the House of Commons (Code).'

"The [Ethics] Commissioner went further to clear Minister Raitt when she said the Minister 'did not accept any gift or other advantage in connection with the September 24, 2009 fundraising event ... Ms. Raitt was not involved in the recruitment of these volunteers or the organization of the fundraiser and therefore did not accept these services or contributions.'"