Happy Temporary Foreign Workers Labour Day!

Bloomberg, Dec 2010 : Europe’s largest oil-field service provider, Saipem, wins $1 Billion onshore contract from Husky for the Sunrise Energy Project in Canada.

Nine months ago, Fort McMurray Today reported that 270 unionized welders and pipefitters contracted to that Husky Sunrise tarsands project were laid off and replaced by cheaper temporary foreign workers from Mexico, Ireland, Portugal and Italy.

A commenter under another FMT article explained:

"We had to conduct a handover to Saipem (a mostly Italian workforce), detailing to them where we had stopped work so that they may continue. In the final week, Saipem foreign workers were actually in the facility working side by side with us; a very uncomfortable situation for those of us about to be laid off."

Yesterday, CBC's Kathy Tomlinson revisited that story : Canadians expose foreign worker 'mess' in oilsands"

"Canadian tradesmen from a huge oilsands construction project are waving a red flag about safety hazards and near misses, which they blame on the use of foreign workers who aren't qualified and can't speak English.

Stand-outs from her report :

• a foreign worker taking a blowtorch to a propane tank to defrost it, 
• Canadians with better qualifications passed over for jobs while foreign workers from Europe continued to show up 
• foreigner workers arrived without Canadian-standard trade certification but "under government rules, they have a year before they must take their test." after which they can take it again later if they fail,  and 
• "Probably 75 per cent of [foreign] ironworkers on site were only at the level of a labourer."
• When refused LMAOs, Saipem used "intra-company transfers" instead [which I wrote about here.] 

But back up a bit. The company that brought in those workers - Italian oil and gas services contractor, Saipem.  Haven't we heard about them before?

Dec. 2012 : Saipem CEO resigns after Algeria corruption probe

July 2013 :Milan court rules Saipem guilty of corruption in Nigeria ... 

July 2013 : Saipem drilling rig sinks off Angola One person missing

"The Italian oilfield services provider said that one of the jack-up rig’s three legs collapsed, causing the rig to suddenly tilt and start taking water. The incident, according to Saipem, occurred during the rig positioning on location between the coasts of Angola and the Democratic Republic of Congo, in approximately 40 meters of water. 6 crew members have sustained minor injuries. At approximately 10:30 am CET, the rig, with no personnel on board, capsized and sank. "

Sept. 2013 : Milan prosecutors investigate Saipem for alleged market manipulation and insider trading

May 2014 : RBC Investor and Treasury Services - SAIPEM  - Class Action Notice 

"As a result of the company's untimely disclosures of relevant information, particularly its involvement in an Algerian corruption scandal from 2007 to 2010, and it is alleged that Saipem paid bribes to win a series of contracts worth around $11 billion which led to significant stock drops in January and June 2013. Various (criminal) investigations against Saipem by the Consob, the Italian market regulator, and Italian prosecutors are ongoing."

July 2014 : Australian unions fury at Coalition`s gas job sell-out

"Saipem's enormous pipelay vessel Castorone will start work soon off the Australia coast.  The Government issued a regulation eliminating the need for any worker on a craft not tethered to the Australian mainland to have a work visa. That would free foreign companies with the contracts to lay pipework and other vital infrastructure on huge projects such as the Browse Basin gas field to hire thousands of foreign workers instead of Australians."

Gosh, just like here.
But no, not any of those stories ... 
Ah I remember - it was Arthur Porter, SNC-Lavalin, and Saipem!

In 2005, Saipem won a contract with SNC-Lavalin for the Horizon oilsands project, owned by Canadian Natural Resources Ltd.
In 2006, SNC-Lavalin and Saipem awarded "joint partnership contract" to build LNG Terminal in New Brunswick.

Four years later, SNC-Lavalin had signed a deal to award soon-to-be CSIS watchdog Dr. Arthur Porter of Sierra Leone (currently on the lam from Canadian law in Panama) and his company Sierra Assets Management, 3 payments totaling $10-million for consultancy fees regarding a gas project in Algeria.  The $1.2 billion Rhourde Nouss gas project deal was awarded to SNC-L the same year by Sonatrach, Algeria’s national oil company.

In 2013,  Algerian police raided SNC offices in Algiers regarding "allegations of bribery and kickbacks involving Sonatrach and public officials and agents hired by SNC-Lavalin to procure a number of large infrastructure projects."

G&M February 2013 : SNC-Lavalin bribery probe widens to Algeria :

The investigation focuses on one of the company’s agents in Algeria, Farid Bedjaoui, a jet-setting money manager hired to help secure at least $1-billion in contracts with the country’s state-run oil company, Sonatrach. Mr. Bedjaoui was educated in Montreal and occasionally resides there

Sources close to the investigations in Europe and Canada believe that SNC and the Italian oil services firm Saipem SpA relied on Mr. Bedjaoui, the nephew of former Algerian foreign affairs minister Mohammed Bedjaoui, to obtain contracts from Sonatrach.

Mr. Bedjaoui is one of several foreign agents hired by SNC who have fallen under suspicion for allegedly paying bribes.

Several Saipem executives are under investigation, including the construction unit’s recently suspended chief operating officer, Pietro Varone, who was so close with Mr. Bedjaoui that the two men launched a wine-making company together outside Naples.

Well, I'm sure when we sign off on those investor-state rights trade deals with Europe, CETA and TTIP, all this will go much more smoothly, right?

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SNC-Lavalinks in a small, small, small Con world.

Gwyn Morgan, chairman of SNC-Lavalin for six years til this past May, portrayed the beleaguered company in his recent July G&M article as "the victim of embezzlement by two trusted, long-time executives."
There are several long-time execs to choose from here so I'm not sure exactly which two he is referring to.  Morgan, you will recall, was Harper's pick to head up his 2006 ethics and accountability commission. 

Helping SNC-L out during this period of victimhood is the Harper Government, who just extended them a defence contract worth $400 million over up to ten years to provide Canadian troops overseas with military logistical support. An SNC-L exec VP said they were proud to support the Canadian Forces.
The World Bank might have banned SNC-L and its affiliates from bidding on their aid projects for 10 years due to allegations of engaging in corrupt or fraudulent practices across four continents - and CIDA has followed suit - but the Public Works Dept. has its own criteria.

Likewise the crown corporation, Canadian Commercial Corporation, best known for its primary job of  selling $1.4-billion of Canadian military technology to the US Department of Defense, will soon decide whether to award SNC-L the contract to build a children's hospital in Trinidad Tobago. SNC-L has already finished designing it as part of a joint Canada/Trinidad Tobago venture and like the SNC-L MUHC hospital deal in Canada, it's a public-private partnership.
People in T&T are understandably concerned about dealing with a company caught up in the largest corporate corruption case in Canadian history, with fraud and bribery charges pending in Libya, Algeria, Cambodia, Bangladesh, and Montreal, but as T&T High Commissioner to Canada and former SNC-L exec Philip Buxo explained : 

 "The T&T Government is not involved in the decision-making process to hire any Canadian company to construct the hospital. The full responsibility for the selection of any company is the exclusive responsibility of the Canadian government’s designated co-ordinator, the CCC.”

It's a small, small, small world ...

In December 2003, Philippe Couillard, then-Quebec Health Minister and now newly-crowned Quebec Lib leader, appointed Brian Mulroney to head up the feasibility study for MUHC superhospitals. A decade earlier Mulroney had appointed David Angus, director of Conservative Fund Canada, to the Senate.

Senator Angus was a director-at-large of the MUHC board that approved the recommendation of the search committee and hired Dr. Arthur Porter as CEO in Jan 2004. Angus became MUHC chair in 2007.

In Sept 2008 Harper appointed both Porter and Couillard to SIRC. 

The MUHC board ratified the choice of SNC-L to build the $1.3 billion mega-hospital in a public-private partnership in April 2010. Three weeks later, SNC-L payments of $22.5-million in consulting fees to Porter's Sierra Asset Management began rolling in, continuing six months after Porter left MUHC. 

Senator Angus continued to stand by Porter publicly, no matter how damning the news about him. In Nov 2011 Arthur Porter stepped down as MUHC director general, followed by Senator Angus' exit as chair of MUHC a month later. 

Fun fact : When SNC-L decided to conduct an internal audit into all this in 2012, it hired Senator Angus' law firm Stikeman Elliott LLP, from which he retired in 2009 as a senior partner after four and a half decades.
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Update : Excellent piece on the SNC-L/T&T deal from economists Patricia Adams and Brady Yauch :

"The injudicious decision by one Canadian federal government agency to arrange an untendered, closed-door deal for SNC-Lavalin while another, the federal police force, investigates the company for wrongdoing seems lost on government officials. Canadian taxpayers would be right to charge, as are Trinidadian and Tobagonians in their own country, that our government is failing to maintain proper standards in the handling of public projects. 

More fundamentally, untendered, closed-door deals arranged by the Canadian government for any company can’t help but create the very environment in which bribery, corruption, and conspiracy to defraud taxpayers and ratepayers thrives.

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Steve and the multinational man of mystery

I do hope someone is securing the rights to make a Made In Canada thriller about Stephen Harper's spy watchdog and his various business associates.

I'm referring of course to the Honorable Dr. Arthur Porter, "His Excellency, Ambassador Plenipotentiary, Republic of Sierra Leone" and also "Member, Queen’s Privy Council for Canada” for life.

Really, this cast of characters has everything -  spies, dictators, terrorists, Russians, drug cartels, arms dealers, diamond mines, bribery, money laundering.  

Here's a storyboard to get you started ...

2008 : Dr. Arthur Porter is appointed to five-member CSIS watchdog committee, SIRC, on recommendation of PMO. 

June 2009  SIRC committee member Arthur Porter appointed to lead investigation into complaint CSIS 'was complicit in the detention' of Abdelrazik" six years previously.
Investigation goes nowhere.

June 2010  Porter promoted to Chair of SIRC by Harper

Also in June 2010, Porter wired $200,000 in personal funds to former Israeli agent and international lobbyist/arms dealer Ari Ben-Menashe to secure a $120-million grant from Russia to build Russian port facilities in Porter's native Sierra Leone where his family have diamond mining interests. The offshore payment was made via one of Porter's private companies, the Africa Infrastructure Group, but the deal fell through. 
Mr. Ben-Menashe was charged in the US in 1989 with illegally attempting to sell three military transport airplanes to Iran but acquitted on the grounds he was acting on official Government of Israel business. 

Ben-Menashe testified he had personally witnessed George H. W. Bush attend a meeting with members of the Iranian government in Paris in October 1980, as part of a covert Republican Party operation — the so-called October Surprise — to have the 52 U.S hostages then held in Iran remain there until President Jimmy Carter, who was negotiating their release, had lost the 1980 presidential election to Ronald Reagan.

His house in Montreal was fire-bombed this past December.

During Porter's 2004 -2011 tenure as CEO at McGill University Health Centre, two former top executives at SNC-Lavalin allegedly authorized $22.5 million in payments related to getting the contract for a $1.3-billion superhospital expansion to Porter who was head of the selection committee. Payments were made to Sierra Asset Management Inc in the Bahamas at a bank run by a business associate of Porter's.

Nov 2011 Porter resigned from SIRC following the NaPo story on his dealings with Ben-Menashe and a month later from his position as CEO of McGill University Health Centre, where he left behind $300,000 in personal debts and a hospital with a $115-million deficit .
According to the McGill Daily, Porter sold the condo McGill fronted him half a million bucks to buy without paying back the $800,000 loan on the place.

Feb 2013 Arrest warrants issued for Porter for defrauding the government, accepting bribes, and money laundering in connection with alleged SNC Lavalin $22-million kickback to Porter via Sierra Assets Management to secure the hospital contract.  Also on the arrest warrant :

• Former MUHC director Yanai Elbaz.
• Former CEO of SNC-Lavalin Pierre Duhaime
• Former SNC-Lavalin VP Riadh Ben Aissa, in jail in Switzerland for the past year on suspicion of making bribes in return for contracts in Libya
• Jeremy Morris, Sierra Asset Management, Bahamas, 

SNC-Lavalin signed a deal to award Sierra Assets Management, formed in November 2009, 3 payments totaling $10-million for consultancy fees regarding a gas project in Algeria. The $1.2 billion Rhourde Nouss gas project deal was awarded to SNC  the same year by Sonatrach, Algeria’s national oil company.
Last Monday Algerian police raided SNC offices in Algiers regarding "allegations of bribery and kickbacks involving Sonatrach and public officials and agents hired by SNC-Lavalin to procure a number of large infrastructure projects."
FINTRAC, the Canadian federal agency that monitors money laundering, is investigating a trail of SNC payments to Porter and later Sierra Asset Management from 2007 to June 2012, six months after Porter left MUHC.


On May 27 Porter and his wife were arrested in Panama and are fighting extradition to Canada. Porter has stated he is too ill to leave his home in the Bahamas to fly all the way to Montreal to face charges, however he was seemingly well enough to embark on a business trip 1½ times that distance from Bahamas to Antigua, but was unfortunately nabbed en route in Panama.

Porter's Panamanian lawyer, Ricardo Bilonick Paredes, a former ambassador of Panama, testified at Manuel Noriega's 1991 trial that he :

"acted as a middleman between Manuel Noriega and Colombian drug cartels in the 1980s ... passing millions of dollars in bribes to Noriega, in exchange for the ability to fly planes packed with tons of cocaine from Panama to the United States."

Dr. Karol Sikora, Porter’s business partner at his medical cancer clinic in the Bahamas, was hired by the son of the late Libyan dictator Muammar Gaddafi in 2009 to give a medical opinion on the condition of the Lockerbie bomber, Abdel Baset al-Megrah - in prison for the 1988 bombing of Pan Am Flight 103.  Sikora secured al-Megrah's release from prison on compassionate grounds, testifying that he only had 3 months to live. Al-Megrahi lived another three years .

Currently Sikora is arguing Porter's self-diagnosed stage four lung cancer means he will not live long enough to stand trial.

Some have questioned how Steve could have displayed the poor judgement to appoint Dr. Arthur Porter, multinational man of mystery, to head up a sensitive position at SIRC giving him access to both Canadian and American intelligence.

You're kidding me, right?

May22 2014 update : National Post :
Arthur Porter and associate split $22.5M payout in ‘biggest corruption fraud in the history of Canada,’ Quebec inquiry hears

SNC-Lavalin made threats against Spanish bid rival

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