Your daily Senate shenanigans

Today the Senate voted 51- 30 against having Deloitte partner Michael Runia testify about Senator Irving Gerstein's phone call to Runia amid PMO interference in Deloitte's audit into Senator Duffy.

Background : PMO Manager of Parliamentary Affairs Patrick Rogers on March 8, as per the RCMP ITO: 

"Senator Gerstein has just called. He agrees with our understanding of the situation and his Deloitte contact [Runia] agrees. The stage we 're at now is waiting for the Senator's contact to get the actual Deloitte auditor on the file to agree. The Senator will call back once we have Deloitte locked in."

All the Con senators voted against hearing from Runia because as one explained ... wait for it ... "it might interfere with an ongoing police investigation."

Con Senator Vern White, former Ottawa police chief : "The timing is wrong right now."

Ok, Senators, what is it the right time for then?

Senate plans to probe CBC operations

"The Senate is planning a comprehensive review of the CBC's role in Canadian society, examining how it has used billions of dollars in government subsidies received over the years.

With the Senate’s credibility on the line due to the ongoing spending scandal, Dawson explained that all senators had extra motivation to deliver a well-researched review."

Bonus Senate bs : Earlier today, Senator Gerstein, chair of the Senate banking committee, ruled "out of order" a request that he step down as chair of the Senate banking committee.

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Thursday update : Harper rejects calls for Parliament to hear more from Duffy witnesses

"Stephen Harper says there’s no need to hear an explanation from a Deloitte auditor who allegedly intervened in an independent audit into Mike Duffy’s expenses at the behest of the Conservatives’ top fundraiser and the Prime Minister’s Office."

Senate scandal : A cover-up in broad daylight.
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Senate shits the bed, goes back to sleep

Last night's CBC At Issue panel, Nov.28 2013 on the Senate blocking a witness and the PMO continuing to run the Senate. Former Harper supporter Andrew Coyne is beyond disgusted. 

Mansbridge : The government blocks a key witness [Michael Runia, Managing Partner at Deloitte] from appearing before a senate committee to answer questions about whether he had tried to massage or even question the firm's audit of Mike Duffy's expenses.

Andrew Coyne : It's incredible. Step back from this. This is the auditing firm Deloitte that does the audits for the Conservative fundraising arm; they are also the recipient of millions of dollars in federal contracts. They are given this contract to investigate Mike Duffy's expenses by the Tory-dominated committee and there's all kinds of interference reported in the RCMP doc where they're calling them up to ask them how it's going; they're trying to influence it; Duffy's not talking to them et cetera.
At the centre of it is this fellow Michael Runia, who was the point man, the contact with Senator [Irving] Gerstein. We hear during today's testimony from the three auditors involved in the audit, he was in fact making these very inappropriate phone calls - they had to cut him off.

Just when you think ok that's the next step -clearly they'll call him as the next witness - they have a vote and vote not to call him. It's staggering. You cannot believe they would be that brazen about it."

No?  It was the last act on the last day in office before retirement for Gerald Comeau, Con chair of the Senate's internal economy committee, a position he was hastily shoehorned into following the departure of the former disgraced chair, David Tkachuk. Comeau shepherded his little Senate flock into voting against a motion to even hear from Gerstein's contact at Deloitte, longtime Con supporter and Deloitte partner Michael Runia.

Flashback to early March ...

PMO Manager of Parliamentary Affairs Patrick Rogers on March 8, as per the RCMP ITO: 

"Senator Gerstein has just called. He agrees with our understanding of the situation and his Deloitte contact [Runia] agrees. The stage we 're at now is waiting for the Senator's contact to get the actual Deloitte auditor on the file to agree. The Senator will call back once we have Deloitte locked in."

Then, 13 days later on March 21, Patrick Rogers makes a prediction weeks before the Deloitte audit is sent to the Senate [bold : mine]: 

"Deloitte can 't reach a conclusion on residency because lawyer has not provided them anything. This is despite their attempts use "public information" about residency. Their report will state that lawyer did not provide information when requested. They were asked to complete the work by the end of March and plan to.

I would propose that the Senator [Duffy] continue to not engage with Deloitte. I believe that we should make arrangements for repayment knowing that Deloitte will not say one way or another on his residency. If asked following the report why he did not participate with Deloitte the Senator [Duffy] can say because he had already made the decision to repay the money and as he said at the time, he looked forward to moving on. It is then up to our esteemed Senators on the committee and our Senate leadership to move on.

And voilà - everything Patrick Rogers predicted before the Deloitte report was tabled came true and the "esteemed senators" are indeed desperately trying to "move on", including refusing to hear witnesses in the Senate, after first having Writewashed the Deloitte audit.

Mansbridge : We should mention that in the end, nothing was done to the Audit. There was no inappropriate ... the ethical wall wasn't breached.

Coyne, somewhat snidely : So Deloitte says.

Exactly.


It was Steve's PMO legal counsel Benjamin Perrin who asked Senator Irving Gerstein to work his contacts at Deloitte over the audit. Perrin returned to his job teaching law at UBC in April after all his emails in the PMO were erased, according to the RCMP.

PMO staffer Patrick "This is epic. Montgomery is the Problem" Rogers has since been removed from the immediate line of fire to Heritage Minister Shelly Glover's office.

Senator Irving Gerstein is still sitting in the Senate and is still in charge of the Conservative Fund Canada. When questioned about his bagman's leading role in all this, Steve - the Accountability Firewall Guy continues to refuse to say his name out loud in Parliament. 

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Harper's Parade of Perps with Perks #8

Please welcome Senator Irving Gerstein, chief Con bagman and in-and-out election scheme perp, to Harper's Parade of Perps with Perks for what the Mounties allege was his role in trying to kill off the Deloitte audit into the expenses of Mike Duffy.

At a Con Party meet earlier this month, Gerstein announced to the party faithful :

“First, I made it absolutely clear to Nigel Wright that the CFC [Conservative Fund Canada] would not pay for Senator Mike Duffy’s disputed expenses,” the Ontario senator said.
“And it never did.”

Having the Con Fund pay off Duffy's expenses had actually been the PMO plan all along; Nigel Wright paying them instead was merely a later variation on that plan when the amount was three times what they expected. 

More serious is the attempt out of the PMO to muscle the Senate into shutting down the Deloitte audit using "back channels", and to hide it from the public and the RCMP with the complicity of Senators Stewart Olsen, LeBreton, and Tkachuk, all of whom previously publicly stated they knew nothing about doing a deal with a number of PMO staffers to change an audit, whitewash their reports on it, and hide the Duffy money trail. 

PMO staffer Patrick Rogers on March 8, from the RCMP ITO : 

"Senator Gerstein has just called. He agrees with our understanding of the situation and his Deloitte contact agrees. The stage we’re at now is waiting for the senator’s contact to get the actual Deloitte auditor on the file to agree. The senator will call back once we have Deloitte locked in."

Harper continued to deny in QP yesterday that he knew anything at all about the actions of all these people he personally hired for the PMO or appointed to the Senate. 
The RCMP ITO notes there is "no evidence to suggest that the Prime Minister was personally involved in the minutiae of those matters", and Nigel Wright has also said Harper was unaware of the specific details.

So what. That's what the six people in the PMO wrangling out those specific details were for.

The Perps with Perks Virtual Boxed Set ... with perp bios .. to be continued...
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The Tax Free Tour - tax havens and outsourcing

A doc about the stateless offshore world of tax havens. 

Why does Apple only pay 1.9% tax?
The Big Four : Price Waterhouse Coopers, Deloitte, Ernst & Young, KPMG

Former KPMG man : "They are the constant feature of every tax haven. Without one of those firms, or maybe all of those firms being present, you really will not have a tax haven."

He describes how the Big Four as he calls them are hired by governments to guide financial rules that benefit the Big Four.

So remember back in Sept 2011 when Steve gave Deloitte a $20-million contract to advise federal cabinet and senior officials on how to trim $4 billion from government program spending in order to balance the books by 2014?  

Ah -an outsourcing firm is being hired to recommend more outsourcing we said at the time, remembering a 2010 CBC report on the 80% increase in a parallel civil service made up of consulting firms.

At the same time, Deloitte, CORE-outsourcing, and Ryerson's Ted Rogers School of Management teamed up to produce a joint research initiative using Deloitte's "proprietary outsourcing maturity model". It was called The 3 E's of Effective Outsourcing Governance -Experience, Essentials, and Empathy -because that sounds better than Externalizing accountability, Eff Off Unions, and Economic entropy.

They projected that "almost $25 billion worth of outsourcing contracts in Canada [are] to be renewed or renegotiated over the next three years."

Pictured at the top of their 3 E's report are Ray Lavitt, President of CORE; Ian Chan, Principal at Deloitte; and Ron Babin, Professor at Ryerson.  
All three have outsourcing and/or offshoring creds : 

• Lavitt was "VP, Global Sourcing at CIBC" before becoming CEO of CORE
• Chan is "Leader of Deloitte Canada's Outsourcing Advisory Practice" and 
• Babin was "a partner at Accenture and at KPMG", according to his Ryerson bio, and "his area of research is IT Planning and IT Governance with a specific focus on IT outsourcing and off-shore delivery."

Lavitt and Babin featured in an article a month ago at CBC : Offshore outsourcing 'not always a negative thing'

Lavitt is President of CORE; Chan and Babin are CORE board members.

So how did Steve's outsourcing report from Deloitte work out for us?
FinMin Jim Flaherty announced a trim to Ottawa’s annual spending by $5 billion a year in budget cutbacks in programs and services to eliminate the $26-billion deficit by 2015.

As of Dec. 31, 2012, 16,220 public service positions were eliminated, even though according to Canadian Centre for Policy Alternatives in 2011 :

Over the past five years, personnel outsourcing costs have risen 79%. While federal departments have had their budgets capped, expenditures on outside consultants have not been touched and remain above $1 billion a year,” says Macdonald.

Wednesday May 8 update : 

Star investigation: Millions in taxpayer-funded consulting work kept secret

A Star investigation has found 90 per cent of the $2.4 billion paid out in the past decade comes with no description of the work done — and more than a dozen departments refuse to provide details when pressed.

Thursday May 9 update :
Hundreds of public servants at seven departments received notices today that their jobs are on the block as part of the Conservative government’s ongoing spending cuts

Watch the doc. 
See also International Consortium of Investigative Journalists/offshore
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$93K a day for advice on outsourcing government

"Trained economist" Stephen Harper has given Deloitte, the world's largest accounting and consulting and outsourcing firm with $28.8 billion in profits for 2011 , a $19.8-million contract to advise federal cabinet and senior officials on how to trim $4 billion from government program spending in order to balance the books by 2014.
The contract runs till March 31, 2013, with an option for a one-year extension

New Conservative Party motto : You have to spend money to save money.

Back in December, CBC ran a story on the ballooning of a parallel civil service made up of consulting firms.

"... preliminary findings show that over the past five years, the cost of outsourcing has ballooned by at least 80 per cent. Estimates reveal the government is spending billions of dollars a year on professional services.

"I've been in environments where there are 80 consultants and 10 staff or 20 staff and we outnumber them and that's a very different experience from when you're the two or three token consultants," said Gordon Martin, a senior analyst and technical architect who is one of the thousands of people who works as a contractor for the government.

Alex Beraskow, who runs a consulting firm specializing in IT and management, said the use of consultants by the government is a huge business.

"It's the single largest market in Canada for professional services. It's what we call a sunrise industry rather than a sunset industry," said Beraskow.

Maurice Chenier, chief executive officer of the Information Technology Services Branch at Public Works, noted that about a third of the staff in his department are consultants."

Billions of dollars a year on consultants. Do you think Deloitte is likely to recommend $4B less of them?

Update : Deloitte has consulted on a number of other issues both within Canada and worldwide : water privatization, massaging the tarsands image.

Earlier this year in conjunction with Public Policy Forum they published Innovation in Government? Conversations with Canada's Public Service Leaders - about 100 of them, mostly deputy ministers.

A June 23 2011 interview on Business News Network - Innovation and Re-making the Canadian Government - introduced Deloitte Global Director William Eggers as someone who has "been coming up here four or five times a year for years" to advise government on "efficiencies".
Yes, he said, he's been up here so many times he's joked with Canadian government officials that he should be made an honorary Canadian citizen by now. Eggers :

"I used to lead something called the Texas Performance Review and our job was just to go in and find anywhere from a billion to two billion dollars each biennial of savings ... you know what we did? We looked all over the world for good ideas in business that we could connect back to government."

Hey, if it's good enough for Texas, it's good enough for Steve.
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