CommunityAIR press release
Media Release
January 6, 2010
For Immediate Release
TPA Report Cover-Up Reveals Ten Year Contract
Last week, the Toronto Port Authority quietly released a "Special Examination" of its activities for the five year period ending December 31, 2008
i – virtually all of which was during (now) Natural Resources Minister Lisa Raitt‟s term as its CEO..Portions of the examination, conducted by the TPA‟s regular auditors, Deloitte Touche, were "redacted" by the TPA.
CommunityAIR has obtained a copy of this report without the redactions.
What is revealed, at page 45, is this:
"The current contract with Logistec
ii (for its terminal management – which includes management of land traffic related to cargo - if anyiii - and trucks carrying that cargo – page 42) effective January 1, 2005 ends on December 31, 2014."But, on page 20, the Examination states:
"There is a TPA corporate tendering policy in effect for all business units that must be complied with, for work, contracts or goods including capital expenditures that exceed $100,000."
Curiously, Deloitte failed to ask the question – was the „corporate tendering policy" complied with for this contract?
"Surely a ten-year contract for a substantial component of the TPA's operations would warrant an examination to ensure that all legal and policy requirements were satisfied. Deloitte failed to do that.
Notes:
ii
Logistec „provide customer service and market the port of Toronto by communicating with customers and preparing competitive quotations.": www.infosource.gc.ca/inst/tor/fed04-eng.asp. But is also does that for 28 other ports in Eastern Canada. Would there not be a conflict of interest?iii
Our comment – there is precious little cargo handled by the Port of Toronto - beyond cement, gravel, sugar, asphalt and salt to docks owned by the companies receiving the shipments.We've done searches, and can find no evidence that tenders were invited as required. We can only assume that no tendering was done, and that Ms. Raitt, ignored the policy." said Brian Iler, Chair, CommunityAIR.
"The independent examination promised by Transport Minister John Baird in the House of Commons on December 8, 2009
iv, appears to be nothing of the kind."Instead, we get this attempt at a cover-up of Ms. Raitt‟s apparent breach of policy, and no evidence of the inquiry that is so desperately needed to get to the bottom of what‟s going on at the TPA.
"This is second example of the TPA ignoring its own rules – the contracts with Porter for virtually exclusive commercial passenger use of the Island Airport, and exclusive right to operate a passenger terminal were also entered in to by the TPA under Ms. Raitt's watch – and during the period of this Special Examination. These were clearly in breach of that policy – but again, Deloitte had no comment." Iler concluded.
Logistec commenced its relationship with the TPA in 2003 – as announced by a press release from Ms. Raitt on July 15 of that year
vMandated by the Canada Marine Act, the Special Examination is supposed to root out problems with the governance of the TPA – as one of the ways in which it intended to achieve accountability for its actions.
"Lack of TPA accountability and transparency is a serious concern for Torontonians." Iler added.
Under the Canada Marine Act, the Special Examination is intended to "provide reasonable assurance that …financial and management control and information systems and management practices are maintained… and that the assets of the port authority are safeguarded and controlled."
viiv On December 4, 2009, this exchange occurred in the House of Commons:
Mr. Paul Szabo (Mississauga South, Lib.):
Mr. Speaker, on November 26, the Ethics Commissioner reported that there was clear evidence to launch a full inquiry into the ethical misconduct of the Minister of Natural Resources. Now we learn that the directors of the board have approved board minutes, allegedly to cover up political interference and gross mismanagement.
The Minister of Transport who is accountable for this federal agency also continues to refuse to take action, but under subsection 41(1) of the Canada Marine Act, he has the authority to call for an independent special examination.
Will he do that now, or will he continue this shameful cover-up?
Hon. John Baird (Minister of Transport, Infrastructure and Communities, CPC):
Mr. Speaker, the Ethics Commissioner has made no such determination of ethical misconduct, as she is conducting an examination of the matter and I will trust her to do that job.
With respect to the Canada Marine Act, these special examinations are required every five years and one will be done this year.
v
http://www.torontoport.com/PortAuthority/port_news_content.asp?id=101&SearchType=ExactPhrase&terms=logistec , reads as follows:New Terminal Management at the Port of Toronto
July 15, 2003 We are pleased to inform you that as of June 17, 2003 Logistec Corporation is managing the two Marine Terminals located at Cherry Street and Unwin Avenue on behalf of the TPA. Specifically, Logistec will now be managing checking, clerking and truck loading operations formerly managed by the TPA. Alain Lefebvre [(416) 462-0263] has assumed the role of Terminal Manager. Invoices will be issued to customers by Logistec, on behalf of the Toronto Port Authority, and identified with an "LOG" in the invoice number. For enquiries regarding terminal handling invoices, please contact Alain or Margaret Gaus at (416) 462-3151. Berthing arrangements and ship services invoicing will continue to be handled by the TPA directly. Stevedoring operations at the Marine Terminals will continue to be carried out by Empire Stevedoring Co. Ltd. (contact Murray Gorodensky (514) 288-2221) and by Logistec Corporation. Yours truly, Lisa Raitt CEO & Harbour Master
vi
Canada Marine Act sections 41 and 38.
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