By TCE News
An advocacy group has called for a radical overhaul of Canada’s ethics laws, claiming that current rules allow the nation’s most powerful officials to “secretly profit” from their own decisions.
In a formal submission to a parliamentary committee, Democracy Watch identified what it described as a “dirty dozen” of loopholes in the Conflict of Interest Act. The group argues that the legislation is so riddled with exemptions that it is effectively almost impossible for a senior official to be found in breach of the law.
At the heart of the group’s concerns is what it calls the “99% loophole.” Under current rules, a conflict of interest only exists if a decision is specific to a narrow interest. Democracy Watch claims this ignores the vast majority of government actions—such as industry-wide regulations or broad policy changes—from which officials or their associates could still financially benefit.
The submission also takes aim at “blind trusts,” claiming they are often anything but. It alleges that Prime Minister Mark Carney remains aware of significant ongoing financial interests with the Brookfield conglomerate, despite his assets being held in such a trust. Furthermore, the group is demanding four key reforms to restore public confidence, including closing the definition of “private interest” to include all government decisions and banning “not-blind” trusts entirely.
The advocacy group is also calling for the introduction of mandatory fines for all violations to replace the current system of discretionary penalties. They are also seeking to codify a “truth-telling” rule to penalise officials who provide misleading information to the public or Parliament.
The report further alleges a conflict of interest within the very committee reviewing the law. It points to the participation of Liberal MP and Parliamentary Secretary Leslie Church, who is herself subject to the Act’s rules and maintains an “ethics screen.” Democracy Watch argues her involvement in the closed-door review of the law constitutes a secret, inside avenue to influence the rules that govern her own conduct.
The House Ethics Committee has met five times in private since February to draft its recommendations. A spokesperson for Democracy Watch said that Canada needs political leaders, not misleaders. The Prime Minister’s Office and Ms Church have been approached for comment.