The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
An independent prosecutor from the Ontario Ministry of the Attorney General has been called in to review the auditor general's report on the Crocus Investment Fund (CIF) as part of the provincial government's five-point action plan to address all the auditor's recommendations to government, Finance Minister Greg Selinger announced Monday. The report recommends the deputy attorney general undertake further review regarding "possible contravention of the Criminal Code" and other violations, and that review is already underway by an independent prosecutor, W. Graeme Cameron, Selinger said. Cameron has been practising law for 17 years and is one of Ontario's most experienced prosecutors. "We are disappointed and angered by indications that misleading statements were made to regulators. Trust has been violated," Selinger said. "We agree with the auditor general that it is important to move forward and act immediately on his recommendations." All the report's recommendations to government will be acted on by: - Calling in an independent prosecutor to determine whether the report should be sent to police for criminal investigation. The prosecutor has received a draft and will receive a final copy of the report. - Asking the Manitoba Securities Commission to broaden its review of past filings by the fund to determine whether there were any "material false or misleading statements in the prospectuses, financial statements and other public communications." - Referring tax concerns to the Canada Revenue Agency. - Creating an implementation team co-chaired by an independent person to oversee the implementation of recommendations to government. The report contains more than 120 recommendations, with about 20 to government and the Manitoba Securities Commission. - Introducing legislation within days to better protect shareholders and address governance issues raised by the report. "We are moving to better protect shareholders and investors by ensuring that compensation and expenses such as travel are properly disclosed," Selinger said, noting the bill will also be accompanied by a legislative review to determine whether further changes are needed. The finance minister also outlined other key government actions: - The government-appointed board member will be eliminated as the member has no role in reporting to government. The auditor general stated: "Regardless of the shareclass from which they are appointed, all board members noted clearly that their fiduciary responsibility was first and foremost to the fund." - The role of Manitoba Industry, Economic Development and Mines will change. The auditor general states the department "is not responsible for the CIF's performance." However, he expresses concern with how the department monitored compliance with the public policy objectives set out in the act. He concludes the department was given too many "conflicting" roles. In 1997-98, its duties were expanded to include monitoring in addition to promotion of the labour fund program. As a result, monitoring will be moved to Manitoba Finance. "As the auditor general notes, CIF reported creating, saving and maintaining more than 14,000 jobs since its inception," Selinger said. "And the private sector agrees we need to expand capital funds for the future benefit of our economy. We can play a positive role by improving the framework for these funds."
