A veteran Tory cabinet minister who played a key role in exposing a scandal with ties to the NDP government in the 1980s is now given the task of unearthing dirt in the Crocus scandal.
Opposition Leader Hugh McFadyen appointed Donald Orchard to lead the Crocus Task Force. Orchard brought the NDP government to its knees in the late 1980s after exposing its ties to the MTX scandal.
Former MLA John Loewen, who left the Tory party to join the federal Liberals, will act as a consultant and share his files and insights with the task force. Rounding out the team will be MLAs Ron Schuler, Glen Cummings and Gerald Hawranik.
The goal of the task force will be to determine the extent the NDP government failed to provide legislative oversight of the Crocus Investment Fund.
A confidential tips hotline (1-877-637-2887) and website (www.crocusfundtaskforce.com) have been set up for anyone with information about Crocus to report.
McFadyen said his investigations would not have the power of a full judicial inquiry but hopes enough information will come forward to answer all Crocus shareholders' questions as to what went wrong. McFadyen will also continue to press the government to call a public inquiry.
Premier Gary Doer scoffed at McFadyen's task team, saying Orchard was the "least accountable member of this house."
"Don Orchard! I mean, my God! On Nursing Week, the guy that fired a thousand nurses is appointed! They're sure going back to the old days with this group," said Doer.
WEB EXTRA: Crocus files made available to Conservative task force
Thursday, May 11th, 2006 By Martin Cash Free Press
FORMER Conservative MLA John Loewen has made all his Crocus Investment Fund files available to a task force launched yesterday by new Tory leader Hugh McFadyen.
Loewen was the first to publicly question the validity of the Crocus share price in February 2002 but then-leader Stuart Murray silenced him. Loewen later bolted the party and ran unsuccessfully for the Liberals in the last federal election.
He said yesterday the Crocus scandal transcends politics and shareholders deserve to know what went wrong.
Former Conservative MLA Don Orchard has been appointed to spearhead the effort along with three current Tory MLAs.
They are looking for information that will reveal just what members of the Doer government knew about the problems at Crocus and when they knew it.
McFadyen said Orchard's experience in helping to uncover $30 million in losses in the MTX scandal in Saudi Arabia in the mid-1980s will prove valuable in the task force's efforts to get civil servants or other insiders to talk about Crocus.
"There are many similarities with Crocus," Orchard said about the losses incurred by MTS in an overseas venture while it was still a Crown corporation during the Pawley government era. "They are both complicated matters but my experience is that if people know there is confidentiality, they will provide information."
Premier Gary Doer said yesterday he was surprised that McFadyen would appoint Orchard to the task force, saying Orchard was not always the most accountable MLA. Doer cited an incident where Orchard refused to talk with a reporter about MLAs' salaries.
Although the task force does not have legal standing and cannot compel anyone to talk, Orchard said he believes he will be able to attract anonymous tipsters. They can file their comment to a confidential website at www.crocusfundtaskforce.com or at 1-877-637-2887.
McFadyen is not sure if any of his findings will be made public, but he reiterated his promise to hold a public inquiry into Crocus if his party is elected to office.
About 33,000 Manitoba Crocus investors have lost about $60 million in value. At least some of that was a result of inaccurate valuation of the shares over the years. The fund was placed in receivership last summer and shares have not traded since December 2004.
Crocus Fund Taskforce
May 10, 2006 - Hugh McFadyen, the Leader of the Official Opposition Progressive Conservative Party, today announced the appointment of the Crocus Task Force to get to the bottom of the Crocus Investment Fund scandal.
In appointing Donald W. Orchard to lead the Crocus Task Force, McFadyen praised the former MLA and Cabinet Minister as the perfect choice for the job. Orchard was responsible for exposing the MTX scandal that helped bring NDP government to its knees in the late 80's.
Rounding out the Crocus Task Force will be MLAs Ron Schuler, Glen Cummings and Gerald Hawranik plus a dedicated research staff.
The mandate of the Task Force is to:
* Investigate the failure of the Doer government to provide legislative oversight of the Crocus Investment Fund
* Specifically determine when elected members of the Doer government (and its appointees) were made aware of the impending financial crisis
* Determine why the Doer government failed to heed warnings and take action to protect Manitoba shareholders
* Advise the Opposition on ways to restore confidence in Manitoba's capital markets
To pursue its mandate, the Crocus Task Force will:
* Seek the cooperation of those familiar with the facts surrounding the Crocus scandal
* Invite confidential input by conducting private interviews
* Operate a confidential Crocus tips hotline at 1-877-637-2887
* Call for the Public Accounts Committee to be re-convened to allow questioning of government players
McFadyen described the Crocus Task Force as a complement to other investigations completed or currently underway by bodies, including the Auditor General, Securities Commission, Court of Queen's Bench and the RCMP.
"While these investigations are vital," said McFadyen, "none address the fundamental question of 'who knew what when' on the government side. This is the capstone issue that must be addressed if Manitobans are to know the truth and if we are to restore accountability to government."
How can you help???
To pursue its mandate, the Crocus Task Force is soliciting input from the public through a confidential 'tips' line and email address, found at the bottom of this page.
The task force will utilize the processes available within the rules of the Legislative Assembly to ask questions of the Government, particularly Question Period and the Public Accounts Committee of the Legislature.
Manitobans deserve answers to how their investments were lost. This Task Force, with your help, can uncover the truth!
EMAIL TIPS TO: info@crocusfundtaskforce.com
Tories renew push for Crocus inquiry
Last Updated: Wednesday, November 29, 2006 | 7:17 PM CT
CBC News
Manitoba's opposition Conservatives hammered the NDP government again Wednesday over its involvement in the collapsed Crocus Investment Fund, while continuing to push for a public inquiry.
Opposition Leader Hugh McFadyen said Wednesday his party wants an inquiry to look into any political interference before and during the fund's collapse — an issue the province's auditor general did not address in his 2005 report on Crocus's demise.
Premier Gary Doer has maintained that a public inquiry isn't necessary, since the Manitoba Securities Commission is investigating the fund's collapse.
But on Nov. 16, a Manitoba Court of Appeal ruling put that investigation on hold, indicating there may be a perceived bias on the commission's part because it had been named in a $200-million lawsuit launched by former Crocus investors.
As a result of the ruling, McFadyen renewed his calls for a public inquiry, telling reporters Wednesday it could be the only way to get answers from the premier on the province's role.
"He won't even answer basic questions about who he meets with, what he knew, all of those sorts of things," McFadyen said of Doer on Wednesday.
"And given that he won't do that, Manitobans have every right to be concerned about his involvement in the scandal; and every right to be outraged by the conduct of the government; and have every right to continue doing what they're doing, which is to write to us and ask for a public inquiry."
Millions lost as share price drops
About 34,000 Manitobans had more than $150 million invested in the labour-sponsored venture-capital fund, which promoted its mandate to invest in companies in the province. It stopped trading on Dec. 10, 2004, over concerns about the true value of its shares.
In April 2005, the fund dropped the value of its shares to just below $7 — almost one-third less than their value when trading was halted.
In a report issued in May 2005, provincial Auditor General Jon Singleton that found serious weaknesses in the fund's operations and governance. The report also found that at the time the NDP government missed warning signs, or "red flags," that the fund was heading for trouble.
The fund went into receivership in June 2005. The remaining investments in the fund are being administered by a receiver.
During question period Wednesday, McFadyen repeated earlier claims that the province knew in advance that the Crocus fund was in trouble.
For his part, Doer acknowledged that the province did miss some red flags, but insisted that his cabinet was not involved.
"The auditor general went on to confirm that the so-called 'red-flag e-mail' never went to a minister," Doer said.
Doer maintained that he has answered all questions about the government's involvement when Singleton released his report.
Allegations fly
On Tuesday, the Conservatives claimed they have evidence showing that top government officials knew in 2000 about the cash flow problems Crocus had.
McFadyen said his party's own task force on Crocus uncovered information from credible sources that indicated a political adviser to the premier was the "go-to person" on Crocus, bypassing the normal department heads.
As well, Crocus officials approached the province asking it to change the Crocus Act so they could have access to more money, McFadyen alleged, adding that the province tried to merge other pension funds to create a bail-out package, or "superfund," but did not succeed.
But in question period Tuesday, Finance Minister Greg Selinger accused the Tories of helping the legal team behind the investors' class-action lawsuit against Crocus the provincial government and others.
Selinger charged that the Conservative caucus had been "aiding and abetting the lawyers for the class-action lawsuit on the Crocus legal team.
"I would like the Leader of the Opposition to account to the House for why he's making government resources available for a lawsuit against the government, in face of the fact that the auditor general's report said that the government was not responsible on for the performance of the fund nor the valuation of the fund," Selinger said.
