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Premier allows embattled Sorbara to stay on
From Friday's Globe and Mail
POSTED AT 1:53 AM EST         Friday, Feb. 27, 2004
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Premier Dalton McGuinty Thursday gambled the fate of his four-month-old Liberal government on voters accepting his decision to allow Greg Sorbara to remain as Finance Minister despite his past as a director of a company that is the focus of investigations by police and securities authorities.
The Premier allowed Mr. Sorbara to pass responsibility for the Ontario Securities Commission to Management Board Chairman Gerry Phillips in a bid to eliminate the perception of a conflict of interest.
And Mr. McGuinty said Mr. Sorbara has promised to step aside as Finance Minister if he becomes the subject of an investigation himself.
* Royal Group chairman leads jet-set life
"He is not the subject of an investigation," the Premier told a hastily called news conference at Queen's Park Thursday night. "And the commitment he has made to me and to the Ontario public is that, should he become the subject of an investigation, then he will step aside from his ministerial responsibilities."
Questions about Mr. Sorbara's cabinet future arose Wednesday with the revelation that police, tax authorities and the Ontario Securities Commission are investigating Royal Group Technologies Ltd.
Mr. Sorbara was a director of the company, a supplier of plastic building products, until shortly before he became Finance Minister on Oct. 23. Further, he served on the audit committee of the board of directors from at least 1996.
Royal Group said the investigations centre on its dealings with a Caribbean resort development controlled by Vic De Zen, the company's chairman, founder and controlling shareholder.
The 1,000-room resort, spa and casino in St. Kitts bought $32-million in goods and services from Royal Group over the past five years. Mr. Sorbara was a director when the housing materials manufacturer went public in 1994.
The Finance Minister said he learned of the investigation last December but did not reveal it to the Premier until it became public knowledge on Wednesday.
On Thursday, the two met in the Premier's office and agreed that Mr. Sorbara should stay on and oversee the preparation of the province's $70-billion-plus budget. "I have every confidence in our Finance Minister. I think he is doing a great job for the people of Ontario. And I see no reason whatsoever why he should stop doing that job," Mr. McGuinty said.
He acknowledged that he is risking a public backlash by not enforcing stricter standards of propriety for cabinet ministers. "I think that what the public are looking for is a sense that we're doing the right thing and a fair thing in the circumstances," he said.
The Premier defended the fact that Mr. Sorbara had not told him sooner about the investigation into Royal Group by the RCMP, the Canada Customs and Revenue Agency, and the OSC.
"My understanding is there is an Ontario securities regulation which prohibits him from disclosing information to anybody until it has been disclosed by the company itself," Mr. McGuinty said.
But Progressive Conservative critic Frank Klees argued that it is impossible to say Mr. Sorbara is not being investigated when he was a director, and served on the audit committee, of a company that is the subject of a multifaceted investigation.
"It doesn't take a lot of imagination to draw the lines between an investigation of the company and of Mr. Sorbara's role in the company's decisions. ..... He is very much a part of that investigation," Mr. Klees said.
Both Mr. Klees and New Democratic Party financial critic Michael Prue said Mr. Sorbara must resign and Mr. McGuinty must demand the resignation if it is not submitted. "They're trying to pull a political stunt to rearrange a department so that it takes him out of a conflict situation," Mr. Prue said.
In opposition, Mr. McGuinty and his party built their popularity in part by tearing down any Tory cabinet minister who showed the slightest sign of improper spending or potential conflict of interest.
"Being in political life, one has to understand that you cannot afford a taint, or a whiff of scandal, whether there's one there or not," Mr. Prue said.
Mr. Sorbara joined Royal Group as a company director in November, 1994. The securities commission is a self-funded Crown corporation that, until now, reported to the province's legislature through the Finance Minister.
The securities commission said the probe also included the company's disclosure practices, financial statements and trading in its stock. The company, which has operations in North and South America, Europe and Asia, had sales totalling $1.9-billion last year.
© 2004 Bell Globemedia Publishing Inc. All Rights Reserved.
From Friday's Globe and Mail
POSTED AT 1:53 AM EST         Friday, Feb. 27, 2004
Advertisement
Premier Dalton McGuinty Thursday gambled the fate of his four-month-old Liberal government on voters accepting his decision to allow Greg Sorbara to remain as Finance Minister despite his past as a director of a company that is the focus of investigations by police and securities authorities.
The Premier allowed Mr. Sorbara to pass responsibility for the Ontario Securities Commission to Management Board Chairman Gerry Phillips in a bid to eliminate the perception of a conflict of interest.
And Mr. McGuinty said Mr. Sorbara has promised to step aside as Finance Minister if he becomes the subject of an investigation himself.
* Royal Group chairman leads jet-set life
"He is not the subject of an investigation," the Premier told a hastily called news conference at Queen's Park Thursday night. "And the commitment he has made to me and to the Ontario public is that, should he become the subject of an investigation, then he will step aside from his ministerial responsibilities."
Questions about Mr. Sorbara's cabinet future arose Wednesday with the revelation that police, tax authorities and the Ontario Securities Commission are investigating Royal Group Technologies Ltd.
Mr. Sorbara was a director of the company, a supplier of plastic building products, until shortly before he became Finance Minister on Oct. 23. Further, he served on the audit committee of the board of directors from at least 1996.
Royal Group said the investigations centre on its dealings with a Caribbean resort development controlled by Vic De Zen, the company's chairman, founder and controlling shareholder.
The 1,000-room resort, spa and casino in St. Kitts bought $32-million in goods and services from Royal Group over the past five years. Mr. Sorbara was a director when the housing materials manufacturer went public in 1994.
The Finance Minister said he learned of the investigation last December but did not reveal it to the Premier until it became public knowledge on Wednesday.
On Thursday, the two met in the Premier's office and agreed that Mr. Sorbara should stay on and oversee the preparation of the province's $70-billion-plus budget. "I have every confidence in our Finance Minister. I think he is doing a great job for the people of Ontario. And I see no reason whatsoever why he should stop doing that job," Mr. McGuinty said.
He acknowledged that he is risking a public backlash by not enforcing stricter standards of propriety for cabinet ministers. "I think that what the public are looking for is a sense that we're doing the right thing and a fair thing in the circumstances," he said.
The Premier defended the fact that Mr. Sorbara had not told him sooner about the investigation into Royal Group by the RCMP, the Canada Customs and Revenue Agency, and the OSC.
"My understanding is there is an Ontario securities regulation which prohibits him from disclosing information to anybody until it has been disclosed by the company itself," Mr. McGuinty said.
But Progressive Conservative critic Frank Klees argued that it is impossible to say Mr. Sorbara is not being investigated when he was a director, and served on the audit committee, of a company that is the subject of a multifaceted investigation.
"It doesn't take a lot of imagination to draw the lines between an investigation of the company and of Mr. Sorbara's role in the company's decisions. ..... He is very much a part of that investigation," Mr. Klees said.
Both Mr. Klees and New Democratic Party financial critic Michael Prue said Mr. Sorbara must resign and Mr. McGuinty must demand the resignation if it is not submitted. "They're trying to pull a political stunt to rearrange a department so that it takes him out of a conflict situation," Mr. Prue said.
In opposition, Mr. McGuinty and his party built their popularity in part by tearing down any Tory cabinet minister who showed the slightest sign of improper spending or potential conflict of interest.
"Being in political life, one has to understand that you cannot afford a taint, or a whiff of scandal, whether there's one there or not," Mr. Prue said.
Mr. Sorbara joined Royal Group as a company director in November, 1994. The securities commission is a self-funded Crown corporation that, until now, reported to the province's legislature through the Finance Minister.
The securities commission said the probe also included the company's disclosure practices, financial statements and trading in its stock. The company, which has operations in North and South America, Europe and Asia, had sales totalling $1.9-billion last year.
© 2004 Bell Globemedia Publishing Inc. All Rights Reserved.