Audit says pork plant may have accessed more PNP money than allowed TERESA WRIGHT The Guardian
P.E.I.’s failed pork-processing plant accessed money from the Provincial Nominee Program and may have accessed more than the rules allowed, according to findings in the P.E.I. auditor general’s investigation of the plant’s finances.
The audit, released late last week, details the millions in loans advanced by the province to the Natural Organic Food Group (NOFG) plant between 2006 and late 2007 as the owners tried to get into new markets for organic pork.
One such government agency, Island Investment Development Inc., granted the plant’s owners more than $350,000 through the Provincial Nominee Program (PNP).
Through this program, a P.E.I. company that met certain criteria would be matched with an immigrant who invested money into the company in exchange for nomination by the province for Canadian citizenship.
A total of $200,000 was paid by the immigrant investors for these expedited Canadian visas. Of this amount, the local companies would receive $55,000 from each immigrant, minus legal and settlement fees.
The NOFG shareholders received eight immigrant investments, referred to as ‘units.’
However, the rules of this federal-provincial program state that no one company is allowed to receive more than four units.
Scott Dingwell, one of the P.E.I. owners of NOFG, said he was not aware of any problems with his company having received more investment units than the rules allow.
“This was all done quite appropriately through our accountants and advisers and I think there was a number of applications made so that we were within the program guidelines,” Dingwell said.
When asked where this money was applied in the company, Dingwell said he didn’t have his files on hand, but that it would have been used “for the purposes identified.”
Provincial Auditor General Colin Younker states in his NOFG audit the PNP units were used to pay off a mortgage taken out on the plant by the company shareholders.
Innovation Minister Richard Brown, whose department oversees the Provincial Nominee Program, said the P.E.I. NOFG shareholders had a separate business from the Quebec shareholders, which is how they were able to access twice the amount of units.
“There was P.E.I. (Pork) Plus, which was one company, and NOFG P.E.I., which was another company,” Brown said.
“They had common shareholders but they weren’t all common to each other, and one company was given four units and the other company was given four units.”
However, on the provincial government website, where all the rules for the program are listed, it states the limit of four investment units for a company includes “wholly owned subsidiaries or affiliated companies where 50 per cent or more of the common shares are held by a single shareholder or by a beneficiary company of immigrant partner investments.”
When asked if this means the NOFG shareholders were contravening the department’s regulations, Brown deferred to the provincial auditor general’s current investigation into the PNP.
“I’ll defer this to the auditor general, he’s doing an analysis of the whole program now and hopefully he will be bringing this item up in his report and say what is the issue here.”
The auditor general decided to launch an investigation into the program several weeks ago after a number of administration discrepancies began coming to light in the media.
The RCMP and the provincial public accounts committee are also conducting their own investigations into the program.
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Stephen Pate from Charlottetown, PE writes: While the Liberal government insists it was hands off when granting PNP units to MLA's, the facts contradict that thin alibi.
The Guardian reports One such government agency, Island Investment Development Inc., granted the plant’s owners more than $350,000 through the Provincial Nominee Program (PNP).
This program always was tightly controlled by the government, both Liberal and Conservative.
That would make the deals struck with Dr. McKenna and all the Liberal MLA's illegal under their terms of office.
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Stroback from PEI writes: It's unfortunate that a thorough audit wasn't required on a regular basis. The misuse of the money might have been found and corrected before it ended up in the pockets of the shareholders.
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Charlie o from pe writes: It`s funny Mr. Brown can`t comment on the issueing of more than 4 units. I can see why the need more than him to come before Public Accounts as he doesn`t know how the fund works,but he is the Minister.
This is getting more interesting and when the RCMP and Auditor General reports come out what will the Premier do to correct this abuse of office.
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Doug Park from PE writes: If Brown didn't know how the PNP program worked, he should have. Ministerial Accountability is taken when there is credit or in this case blame in a department. Someone had better explain this to Minister Brown.
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NOTHING NEW from PE writes: You would think that they would have learned their lesson with Polar Foods but apparently they don't learn easily. How many more Millions will these politicians be conned out of by outside interests before it finally dawns that they are being taken for one long continuous ride.
These businessmen across Canada must be laughing their heads off. Why not place an ad in all papers across North America. Quote If you want free cash just go to PEI where the Government gives it away unquote.
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Jean Charlotte from Ch'town, pei writes: What a joke. How can a dept not know how much one company should get. Let get real folks. If the gov't was giving money out do they not know where it is going and how much is going? I have said it before it is not shameful to any company of how much money they got thru PNP it is shameful on the gov't as the only thing that they were worrying about was not about the businesses that were benefitting from it but their friends the lawyers and accounts etc and themselves who were pocketing money all the while.
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