Eulogy for William Krehm 2 SNC-Lavalin and the Rule of Law Canada’S SNC-Lavalin Affair: by Jonathan Krehm Capital
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THE JOURNAL OF THE COMMITTEE ON MONETARY AND ECONOMIC REFORM $3.95 Vol. 31, No. 1 • JANUARY–FEBRUARY 2019 CONTENTS Eulogy for William Krehm 2 SNC-Lavalin and the Rule of Law Canada’s SNC-Lavalin Affair: By Jonathan Krehm Capital. Unfortunately, as a teenager with The Site C Dam Project and My father passed away peacefully at my head on fire – these were the opening Bulk Water Export home on Friday, April 19, at 11 pm, in his years of the Depression – I could not avoid Canada’s Corrupt Foreign Policy 106th year. He had an amazing full life. We polemicizing against Winston Churchill on Come Home to Roost were blessed that he enjoyed relatively good my exam paper on history. Obviously this The Real SNC-Lavalin Issues health until the end. and the diverted time His generation is did not help my chanc- Why Wilson-Raybould Was Right now gone. His pass- es for a scholarship, Sordid SNC-Lavalin Affair ing marks the end of which in fact I didn’t Exposes Canada as a Plutocracy, an era. Not just for us get. So I spent two Not a Democracy here gathered, but also years in a mathemat- Neoliberal Fascism and the Echoes for those who remem- ics and physics courses of History, Part II ber the struggles of the without money to buy A General Comment about the past. He was the last books. It did nothing Inquiry living North American for my chances of be- A Comment about Paradigm Shift who went to Spain to coming a physicist or 19 BC Leads the Way to a Better support the Spanish Re- a mathematician. But Future for People and Planet public during the Span- it worked wonders for 20 Statement on the Passing ish Civil War. my learning enough of William Krehm He was a fine ama- about mathematics and teur musician. He their powerful legiti- Publications Mail Agreement No. 41796016 played the violin from mate uses to keep me age 9 to 95. For 50 in trouble ever since.” years he hosted chamber music on Sunday He was a self-taught polyglot. His Span- evenings several times a month. Some of ish, French, German were excellent. He also Toronto’s finest string players were regulars read in Russian, Italian, Latin, Hebrew and at these evenings. He reviewed music in Ancient Greek. Even in his last year, suffer- the 1950s and early 1960s in a variety of ing from dementia, his Spanish and German AGM Announcement places including The Globe and Mail. Ezra were still there. Schabas, a former principal of the Royal But throughout his life he was always a There will be an Annual General Meeting Conservatory, once told me he thought Bill rebel. He and my late Uncle Aubrey first on June 29, 2019. had been the best music critic in Toronto. organized a protest against an anti-Semitic The location will be posted on the website, With no business background he entered teacher in Grade 9 at Parkdale Collegiate. www.comer.org, as soon as the informa- real estate development in the mid 1950s. He While in New York at the age of 16 he tion is available. became a house builder, land developer, and joined the American Trotskyist Movement. real-estate investor. The prosperity my family His political activities continued in Ontario enjoys today emanates from his efforts. and Montreal throughout the 1930s. In the From his early childhood he was a vora- movement he met my mother. It was sort of cious reader. In 2009 he wrote: “I wrote my a family affair. junior senior matriculation examination My mother Gladys and her two sisters, without attending high school in those Rae and Dorothy, were members of the final two years, and also found the en- LRWP as were my two uncles, Aubrey Joel ergy and possibly misplaced dedication to and Moie Bohnen. Their small but dynamic go through the three volumes of Marx’s group became the largest Trotskyist group Photo: James M. Ireland Continued on page 3 SNC-Lavalin and the Rule of Law Canada’s SNC-Lavalin announced that Site C would proceed. At FOUNDING EDITOR Affair: The Site C Dam the time, Chief Roland Willson of the West John Hotson 1930–1996 Moberly First Nation called the entire five- Project and Bulk Water stage process a “‘farce,’ and said the govern- PUBLISHER–EDITOR Export ment hadn’t finished the second stage of the William Krehm development process, so he doesn’t know ([email protected]) By Joyce Nelson, Global Research, March how it can go ahead to the third. Willson INFORMATION SECRETARY 13, 2019 said First Nations in the area haven’t seen Larry Farquharson In all the press coverage of the “the SNC- studies on land use, wildlife, the fishery or Lavalin affair,” not enough attention has been the cultural significance of the region, and Economic Reform (ER) paid to the company’s involvement in Site the process can’t move on to environmental (ISSN 1187–080X) is published bi- C – the contentious $11 billion dam being monthly by COMER Publications constructed in BC’s Peace River valley. 27 Sherbourne Street North, Suite 1 Toronto, Ontario M4W 2T3 Canada The Liberals say that any pressure they Tel: 416‑924-3964, Fax: 416-466-5827 put on Jody Wilson-Raybould to rubber- Email: [email protected] stamp a “deferred prosecution agreement” Website: www.comer.org for SNC-Lavalin was to protect jobs at the company. But the pressure may have been COMER Membership: Annual dues to protect something much bigger: the (includes ER plus 1 book of your choice): Liberals’ vision for Canada’s future. Site C CDN$50 epitomizes that vision. Economic Reform subscription only: The “Many Lives” of Site C One year (6 issues): in Canada, CDN$20; Foreign, CDN$40 Birthed in 1959 on the drawing boards Site C dam (Source: CC BY-SA 3.0) of the US Army Corps of Engineers and BC Send request and payment to: Electric (then owned by Montreal-based assessments [Stage 3] without that work.”3 COMER Publications Power Corp), the Site C dam has been Nevertheless, the process did move on, 27 Sherbourne Street North, Suite 1 declared dead, then alive, then dead again and SNC-Lavalin may have been involved Toronto, ON M4W 2T3 several times over the next five decades until in the next stage of the planning process, ER Back Issues: CDN/US$4, includes 2010, when BC Premier Gordon Campbell as well. The Dogwood Institute recently 1 postage; additional copies same issue, announced that Site C would proceed. reported that SNC-Lavalin was “an environ- 4 $2; additional issue same order, $3. Tracking SNC-Lavalin’s involvement in mental consultant for Site C.” Send requests for back issues to COMER, Site C during recent years has been difficult, In 2011, SNC-Lavalin Chair Gwyn 27 Sherbourne Street North, Suite 1 but Charlie Smith, editor of The Georgia Morgan (image on the right) became an Toronto, ON M4W 2T3. Straight, has filled in some of the missing advisor to BC Liberal leadership winner information. Christy Clark during her transition to the Copyright © 2019 Sometime in 2007, the Site C dam proj- premiership. Morgan had joined the SNC- COMER Publications ect was quietly moved to Stage 2 of a five- Lavalin board in 2005 and was chair of the All rights reserved stage process. Smith wrote, “SNC-Lavalin company from 2007 until 2013. As The Permission to reproduce is granted and Klohn Crippen Berger were prime Tyee reported in 2014, “Morgan retired in if accompanied by: consultants for Stage 2 of the Site C project. May 2013, the month after SNC-Lavalin “Copyright © 2019 COMER Publications. This had to occur before the project could agreed to a 10-year corruption-related ban Reproduced by permission of proceed to Stage 3 in the five-stage planning from the World Bank related to a power COMER Publications” process. The decision to advance to Stage project in Cambodia and a bridge in Ban- 3 was based on a prediction in the Stage 2 gladesh. Among the SNC-Lavalin com- Postmaster, please send address report that demand for BC electricity will panies on the World Bank [corruption] corrections to: increase 20 to 40 percent over the next 20 blacklist are divisions involved in publicly COMER Publications years. ‘As extensive as BC Hydro’s hydro- funded BC projects like the Bill Bennett 27 Sherbourne Street North, Suite 1 electric assets are, they will not be enough Bridge, Canada Line and Evergreen Line.”5 Toronto, Ontario M4W 2T3 to provide future British Columbians with Going Forward PRINTING AND DISTRIBUTION electricity self-sufficiency if demand contin- ues to grow as projected,’ the Stage 2 report At the time of Gwyn Morgan’s 2013 Watt Solutions Inc., London [Fall, 2009] declared. Bingo. This gave the retirement from the SNC-Lavalin Chair- Printed in Canada on recycled paper. pro-Site C politicians in the BC Liberal manship, the company was being investi- party…all the justification they needed.”2 gated in at least ten countries, including: On April 19, 2010 Premier Campbell Bangladesh, Cambodia, Ghana, India, Ka- 2 | Economic Reform January–February 2019 www.comer.org zakhstan, Malawi, Mozambique, Nigeria, on the five biggest infrastructure projects the lead design contract was indeed issued Uganda and Zambia.6 in Canada, according to trade magazine in 2015, this would fit with Christy Clark’s While we have no way of knowing ReNew Canada. Those contracts alone effort to push the project past “the point of whether Gwyn Morgan, as an advisor to amount of $52.8 billion, and include proj- no return.” Christy Clark as of 2011, in any way lob- ects for Bruce Power and the Darlington bied on behalf of SNC-Lavalin, we do know nuclear plant in Ontario as well as the Site Help from Trudeau that “Morgan’s personal, family and corpo- C dam in BC.”12 In February 2015, under the Harper rate donations to the BC Liberals totalled While the exact amount of the Site C government, federal fraud and corruption more than $1.5 million.”7 lead design contract is not known, it is likely charges were filed against three of SNC- At the same time, in 2011 SNC-Lavalin at least $1 billion in BC taxpayer dollars.