S
spmarshall
Guest
One of my least favourite provincial cabinet ministers has resigned due to more trouble at Royal Group.
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From the Star:
Oct. 11, 2005. 10:31 PM
Sorbara steps down amid police probe
FROM CANADIAN PRESS
Ontario Finance Minister Greg Sorbara resigned tonight just hours after police raided his family’s real estate development company as part of an ongoing criminal investigation into another company where he was formerly a director.
Sorbara also stepped aside as chair of Management Board of cabinet, citing a search warrant that alleges he’s the subject of an RCMP investigation.
“While I have no idea as to what the allegations are, or the facts on which they are based, my responsibility as a minister is to step aside pending a determination of the matters alleged in the warrant,†Sorbara said through a statement at the Ontario legislature.
He did not immediately appear to speak to reporters, but Premier Dalton McGuinty was to hold a news conference later Tuesday to discuss the situation.
The RCMP exercised four warrants in the raid of the Toronto and Woodbridge, Ont., offices of Sorbara Group as it continued its investigation into Royal Group Technologies, a Toronto Stock Exchange-listed company.
Earlier Tuesday, the New Democrats and Conservatives had demanded McGuinty request Sorbara’s resignation while police continue their investigation.
Sorbara had initially refused to step down, as he refused to do in February 2004 when authorities began looking into the financial affairs of Royal Group Technologies.
“I am not the subject of the investigation, I’m not involved in the investigation, I’ve never been contacted by the RCMP,†Sorbara said earlier Tuesday.
“I have not been involved in Royal Group for over two years now, I’ve not been involved in the Sorbara Group for over two years now, so I feel very comfortable that I am not the subject of the investigation.â€
Sorbara is a former director of Royal Group and since being appointed finance minister has placed his holdings in blind management and resigned as director of the Sorbara Group companies, a firm run by his family.
Conservative Leader John Tory, who said earlier Tuesday he’d seen part of the search warrant that specifically names Sorbara, pointed out that in March 2004, McGuinty told reporters that Sorbara would step down if he became “the subject of an investigation.â€
The warrant, which only contains allegations, certainly indicates that is the case, Tory said.
“I would think that if this document is genuine . . . that Mr. Sorbara will be consistent with that agreement Mr. McGuinty said he had — offering his resignation from the cabinet — and that if it’s not offered, that Mr. McGuinty will request it,†he said.
New Democrat Howard Hampton echoed Tory’s call, saying Sorbara shouldn’t be allowed to continue as finance minister when companies he was once connected to are under criminal investigation.
RCMP spokeswoman Michelle Paradis said she could not provide further details on the search as the investigation was ongoing.
Sorbara said he’s been told there was a land transaction at one time between the Sorbara Group and Royal Group — which he excused himself from to avoid a conflict of interest — that was being examined.
This is the second time the Opposition has called for Sorbara to resign over his involvement with Royal Group.
In 2004, the investigation by police and the Ontario Securities Commission into Royal Group prompted calls for him to step down.
Sorbara kept his post, but severed himself from supervision of the OSC, a responsibility that now rests with a different ministry. He was also cleared of any wrongdoing by the province’s integrity commissioner.
Police have also issued other warrants as it continues its ongoing criminal probe of Royal Group. In February it searched the head offices of Bank of Nova Scotia.
At that time, investigators were looking for documents and data, some dating back as far as 1996, linked to the business dealings of the troubled plastics maker, as well as founder Royal Group founder Vic De Zen and former employees Domenic D’Amico and Fortunato Bordin.
That warrant contained allegations of fraud, theft over $5,000 and publishing a false prospectus against De Zen, former chief executive Douglas Dunsmuir and former chief financial officers Gary Brown and Ronald Goegan. It also makes allegations of fraud and theft over $5,000 against Bordin and D’Amico.
The allegations, contained in a search warrant issued by an Ontario judge, have not been proven and the RCMP has not laid any charges as a result of its investigation.
The company has been under investigation since February 2004 for interactions between Royal Group subsidiaries Royal Building Systems, Roycon Ltd., Royal St. Kitts Beach Resort Ltd. and a numbered Ontario company.
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From the Star:
Oct. 11, 2005. 10:31 PM
Sorbara steps down amid police probe
FROM CANADIAN PRESS
Ontario Finance Minister Greg Sorbara resigned tonight just hours after police raided his family’s real estate development company as part of an ongoing criminal investigation into another company where he was formerly a director.
Sorbara also stepped aside as chair of Management Board of cabinet, citing a search warrant that alleges he’s the subject of an RCMP investigation.
“While I have no idea as to what the allegations are, or the facts on which they are based, my responsibility as a minister is to step aside pending a determination of the matters alleged in the warrant,†Sorbara said through a statement at the Ontario legislature.
He did not immediately appear to speak to reporters, but Premier Dalton McGuinty was to hold a news conference later Tuesday to discuss the situation.
The RCMP exercised four warrants in the raid of the Toronto and Woodbridge, Ont., offices of Sorbara Group as it continued its investigation into Royal Group Technologies, a Toronto Stock Exchange-listed company.
Earlier Tuesday, the New Democrats and Conservatives had demanded McGuinty request Sorbara’s resignation while police continue their investigation.
Sorbara had initially refused to step down, as he refused to do in February 2004 when authorities began looking into the financial affairs of Royal Group Technologies.
“I am not the subject of the investigation, I’m not involved in the investigation, I’ve never been contacted by the RCMP,†Sorbara said earlier Tuesday.
“I have not been involved in Royal Group for over two years now, I’ve not been involved in the Sorbara Group for over two years now, so I feel very comfortable that I am not the subject of the investigation.â€
Sorbara is a former director of Royal Group and since being appointed finance minister has placed his holdings in blind management and resigned as director of the Sorbara Group companies, a firm run by his family.
Conservative Leader John Tory, who said earlier Tuesday he’d seen part of the search warrant that specifically names Sorbara, pointed out that in March 2004, McGuinty told reporters that Sorbara would step down if he became “the subject of an investigation.â€
The warrant, which only contains allegations, certainly indicates that is the case, Tory said.
“I would think that if this document is genuine . . . that Mr. Sorbara will be consistent with that agreement Mr. McGuinty said he had — offering his resignation from the cabinet — and that if it’s not offered, that Mr. McGuinty will request it,†he said.
New Democrat Howard Hampton echoed Tory’s call, saying Sorbara shouldn’t be allowed to continue as finance minister when companies he was once connected to are under criminal investigation.
RCMP spokeswoman Michelle Paradis said she could not provide further details on the search as the investigation was ongoing.
Sorbara said he’s been told there was a land transaction at one time between the Sorbara Group and Royal Group — which he excused himself from to avoid a conflict of interest — that was being examined.
This is the second time the Opposition has called for Sorbara to resign over his involvement with Royal Group.
In 2004, the investigation by police and the Ontario Securities Commission into Royal Group prompted calls for him to step down.
Sorbara kept his post, but severed himself from supervision of the OSC, a responsibility that now rests with a different ministry. He was also cleared of any wrongdoing by the province’s integrity commissioner.
Police have also issued other warrants as it continues its ongoing criminal probe of Royal Group. In February it searched the head offices of Bank of Nova Scotia.
At that time, investigators were looking for documents and data, some dating back as far as 1996, linked to the business dealings of the troubled plastics maker, as well as founder Royal Group founder Vic De Zen and former employees Domenic D’Amico and Fortunato Bordin.
That warrant contained allegations of fraud, theft over $5,000 and publishing a false prospectus against De Zen, former chief executive Douglas Dunsmuir and former chief financial officers Gary Brown and Ronald Goegan. It also makes allegations of fraud and theft over $5,000 against Bordin and D’Amico.
The allegations, contained in a search warrant issued by an Ontario judge, have not been proven and the RCMP has not laid any charges as a result of its investigation.
The company has been under investigation since February 2004 for interactions between Royal Group subsidiaries Royal Building Systems, Roycon Ltd., Royal St. Kitts Beach Resort Ltd. and a numbered Ontario company.
