Auditor general to check immigrant program TERESA WRIGHT The Guardian
P.E.I.’s auditor general has decided to investigate a government program that aimed to connect immigrant money to P.E.I. businesses after a number of controversial aspects of the program were uncovered over the last two weeks.
The Provincial Nominee Program, referred to as the PNP, expedites Canadian visas for immigrants who have money and are willing to invest it into Island companies.
Millions of dollars have been invested in P.E.I., but a number of discrepancies with the program have started trickling into the public eye.
The RCMP is looking into an allegation of fraud by a local businessman and his involvement in the program, and a number of Chinese investors have complained of not receiving back a $25,000 “good faith’’ deposit given as part of their $200,000 investment in Island businesses.
Auditor General Colin Younker said he notified officials within the Department of Innovation and Advanced Learning late Wednesday that he would be auditing the PNP.
“We just looked at the comments in the public and the size of the program and we decided to do an audit on it,’’ Younker said.
He wouldn’t comment further but said he would begin his audit “as soon as possible.’’
Premier Robert Ghiz said he thinks it’s a good idea to have the program examined.
“This program has been in effect since the year 2000 and the auditor will probably be reviewing from 2000 to 2008,’’ he said. “It’s a program that has brought many immigrants to P.E.I. and has provided much needed capital for a lot of our small businesses.’’
Ghiz said he realizes a lot of the publicity on this program has been negative, but he looks forward to receiving some constructive criticism.
“Every time the auditor does a review of any government program, there’s always going to be criticisms — that’s what the auditor does. So I’m sure it’s not going to come out and be nice and rosy, there’s going to be some critical suggestions there and we’re looking forward to that.’’
Opposition member Jim Bagnall, who chairs the public accounts committee, said he is happy to see the auditor general getting involved.
“I think it’s a wise decision that the auditor general on his own stepped in and decided this program should be reviewed.’’
He added the public accounts committee might still decide to examine the PNP as well.
The program has several aspects, one of which involves a partnership agreement struck between immigrants and local businesses.
The immigrant agrees to purchase $200,000 worth of shares in a local company. Some of that money is paid back to the immigrant after a period of time, some of it goes to legal and broker’s fees and some of the money stays invested within the local company.
Twice as many immigrants came to P.E.I. through this program this year over last, and as a result over $280 million was retained by local businesses. The federal government ended the PNP on Sept. 2.
Several MLAs have received funds through this program for their private businesses.
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Mel from PE writes: It is about time that this thing got a full investigation with no favourtism.
Immigrants invest $105,000 into a business and do not get told what or where their hard earned money is sitting, they pay $20,000 for a language payment and a $25,000 good faith deposit. It is a big scam!
Well, I watched the CBC Compass last night and listened to the gaul of Mr. Brown said, no paperwork, no cheque -well this is wrong. The immigrants were not fully told or understood this. These people come here in good faith and should not have to gravel for their so called good faith deposit- good faith on their part, not on the government.
It was also mentioned that the Newcomers Association gets interest on the millions of dollars in this program- well, do they also get the language deposit? How is it that there is such a claimed shortage of ESL teachers? The Premier, Mr. Ghiz, also said that these immigrants are so needed to fulfil jobs here on PEI- What jobs? Minimum wage jobs and those that have been left by islanders to go out west because they cannot live on the jobs that may be here, or to fill the void of those islanders that have left? Jobs that are open when students go back to school? If the companies here, and the unions, paid the decent wage and benefits of other provinces, trades people, skilled people, educated people and graduates would stay here, but employers do not pay them enough and when they complain are told to take it or leave it. He also said that these immigrants leave and go to other cities- after being here one year in good faith, and fulfilling their contract, the immigrants have every right to leave if they too cannot make a decent wage and not live in proverty. They should get their good faith deposit back, no question. The government brought them here for their money and skill, gave them the visas, took their money, but cannot live up to the agreement. PEI is greedy. The government found its gravy train in this program and the immigrants have been used and abused.
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Deb from NS writes: Wait until the investigation is completed before accusing anyone of anything. The report will tell the tale.
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wondering about it from pei writes: I thought that Robert Ghiz's interview on Compass was excellent because he did a good job in explaining the intentions and administration of the program. I know that will disapoint a lot of people who were looking for a nice juicy scandal. The reality is there is none and if the program was compromised the Auditor General will find it.
There are well documented guidelines to qualify businesses as well as criteria for qualifying immigrants.
What you have to understand is that these immigrants are bright and successful business people with high net worth who who were very happy to have been accepted into the program. And as in any business transaction they were looking for value for their money and received what was acceptable to them.
I also agreed with the Premier in how he approached the issue of MLA's. Just because a person is an MLA is not sufficient reason the exclude them from participation in life outside of politics.
He was 100% correct in reffering the matter to the conflict of interest commissioner for a ruling. He was also correct in stating that the test, is whether or not their position as an MLA influenced their participation in the program.
If it turns out they were approved on criteria not applied to anyone else or pressured the civil servants that make eligibility decisions to compromise the rules to receive a decision that was favourable to them I would expect the Premier to take appropriate action.
I have not always been a fan of Robert Ghiz but in this instance he conducted himself well and demonstrated a political maturity that hasn't always been there. I am starting to think he might make a good Premier after all.
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Harold Long from Up West, pei writes: Something is very wrong here and we need to take a very long look at this whole scheme. Why should millionaires be allowed to jump the immigration process, while nearly 1,000,000 people from the rest of the world wait for years to try to come to Canada. This scale of ethnic immigration of very wealthy people is way out of balance. I guess they will not be looking for work here as they have to have a net worth of at least a million dollars just to be able to access this program. Selling canadian and Island citizenship seem ethically wrong to me!
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Old Tory from P.E.I. writes: I don't understand why this liberal regime wants to fill the place up with immigrants anyway. Ghiz recently closed Garden Province Meats putting 100 families out of a livelihood. I am aware of a goodly number of those people who have moved to Alberta to work. Seems to me like severe government mismanagement. Call an election Ghiz and let the people of PEI throw you out of office.
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TA from pei writes: If our own people can't live off low paying jobs how can we expect our newcomers to get along with these wages. Its laughable to say living on the island is cheaper. Our cold weather lasts longer meaning higher fuel costs. Our food is more expensive due to transportation costs. The lack of public transportation systems makes it necessary to have private cars whether you want one or not. If you need medical care off island, there is the bridge, gas, food and possible a paid driver. Look at the rate of inflation on the island compared to other provinces. Much higher. We won't even talk about flying out of Charlottetown.So the old tune, it costs less to live here so making less is acceptable, no longer holds water. Its a great place to live but please don't say its cheaper here. But then if you have $200.000.00 to invest, minimum wage is not the issue. Honesty and integrity is.
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Amazed from PEI writes: Type into Google-- PEI Company Register and you can see the names of the companies and the shareholders that have been processed. It is amazing how busy this Dept has been since Apr/08
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Interested Observer from Charlottetown, PEI writes: Harold, there are actually a number of different classes of immigrant that can access this program. Besides the immigrant investor there is a skilled immigrant program that requires almost no money but a solid education in a field which Canada requires workers and the immigrant entrepreneur category, in which the immigrant is required to buy voting common shares (equity) in a prince edward island business at a minimum of $200K.
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Warren Wallace from New Haven, pei writes: I agree with Harold. These 1850 immigrants from china all had to have a minimum of one million dollars in assets. Yes, there are other programs but we are talking about the 1850 PNP immigrants over the past few months that have come to PEI with at least a million dollars in assets each. Little wonder taipei and the chamber of commerce support the program the members likely made a mint.
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