Categories: E-gamingUncategorized

Another major egaming cover-up exposed!

There isn’t a single shred of honesty or integrity with the Dennis King government and his Cabinet when it comes to e-gaming.

Most of them, his Cabinet, roared like justice warriors demanding honest treatment of Paul Maines and CMT for the way he and the company were treated by the Liberal government when in opposition.

There was never a question in their mind back then that there had been a serious breach of a legally-binding contract with CMT…but that was when they were the Official Opposition, pounding the Liberals with hard evidence exposing the gaming fraud which they had acquired from government documents. Records proving breach of contract and cover-up, not to mention fraud.

Yet, when Premier King came into power with that same group forming his Cabinet, he and they went completely silent on egaming, and doubled-down against Maines with his lawsuit, against the truth, against justice!

I was personally assured by Premier King that he would ensure justice would come on this file just before he and the PCs were elected back in 2019.

After tearing the arguments and claims in the liberal legal document to shreds in many Question Periods as Opposition, they now, as Cabinet Ministers in the PC government, nonetheless supported the very same unedited document Premier McLaughlin put before the PEI Supreme Court.

King has done absolutely everything possible since that time to prevent having to face the inevitable truth of the damage done with the breach against Maines and the company, the lies told, and all the corruption behind it all…. he decided to continue journeying down that same sordid road the Liberals travelled.

King continues to waste taxpayer’s money in the dead-end process lying and denying.

It’s a legal process, I believe, that would be – if it was to get fairly adjudicated on the evidence – an “open-and-shut” case in favour of Maines and CMT.

King has only managed to increase the damages of the Defendants, which will eventually have to be paid out because of his delaying justice. King has obviously also unnecessarily caused additional pain and suffering for Maines, his family, and CMT.

That’s quite a rambling intro for this post, which I didn’t mean to make a long one.

I just wanted to share a document with you that I received today in a Freedom of Access (FOI) request that shows just how big a lie it was that got the government “off-the-hook” on a key issue related to Maines and CMT back a few years ago.

Remember all the fuss when the PC Opposition tabled a document – a “recruitment document template” – in the Legislative Assembly showing how the Liberal government had provided “tax-haven advice” to 4 companies it was trying to recruit to PEI?

They did that by suggesting a parent company be set up in another country that had no tax, then a “subsidiary” company locally could use it as an offshore tax shelter to lessen the amount of Canadian taxes it would have to pay after setting up in PEI.

This is from a CBC story about that revelation in the House:

“A section on the logistics of establishing a business on P.E.I. included the following line. ‘Most companies set up subsidiary of the parent company and flow revenue and costs through an off-shore operation (i.e. US), limiting the tax implications in Canada.’ Aylward said it is one of the most shocking documents he’s read in his time as an MLA. ‘To think that we have a branch of government that’s out there recruiting companies to come to Prince Edward Island to do business, but yet we’re giving them an idea of how to avoid paying corporate taxes here in P.E.I. by setting up a parent company offshore,’ he said. ‘And it’s in black and white’.”

One of the 4 companies receiving that recruitment package was CMT. It had been offered a “first-mover” advantage deal to set up a SWIFT-based Financial network or “hub” in PEI.

The CBC article reported the PEI Government’s official explanation for the package, including this tax-avoidance strategy, as follows:

“Mary Moszynski, the acting director of communications for the province, said the brochure sent to CMT is one-of-a-kind, and the work of a former employee.…She said management did not review the document and would never have sanctioned that paragraph.”

That’s what Ms. Moszynski was clearly TOLD to say – the truth was something else entirely.

Consider the following exchange that happened between the PC [now government] Leader of the Opposition and the Premier of the day, back when this story first broke.

LEADER OF THE OPPOSITION: Thank you, Mr. Speaker. In the fall of 2015 our caucus uncovered [a] government’s sales pitch brochure for four financial services companies, which instruct them to avoid and how to avoid Canadian tax laws. The Premier’s office blamed a civil servant and said management would never have sanctioned such a brochure.

QUESTION TO THE PREMIER: Do you stand by your explanation given by your own office that day?

SOME HON. MEMBERS: Hear, hear!

SPEAKER: The hon. Premier.

PREMIER MACLAUCHLAN: Mr. Speaker, we are in the business of promoting the economy of this province. Indeed, you can see the results of that. Our view, and it’s one that is shared, I’m sure, by all sides of this House, is that, that economy functions well and most effectively when everybody performs by the rules, above board and pays their taxes. We are all for that, Mr. Speaker. Thank you very much.

SOME HON. MEMBER: Hear, hear!

LEADER OF THE OPPOSITION: Thank you, Mr. Speaker. Promoting economical growth to your friends is not the right way. Premier: Can you explain why this person [John Eden] was hired directly from his government’s point position on financial services as you own a significant stake in?

SOME HON. MEMBERS: Hear, hear!

SPEAKER: The hon. Premier.

PREMIER MCLAUCHLAN: Mr. Speaker, I have to confess, I’m not sure what the hon. member is referring to. Whatever business dealings I have are within a trust arrangement as required by our conflict of interest legislation. He, may, indeed, be referring to something that I’m not aware of. Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

SPEAKER: The hon. Leader of the Opposition.

LEADER OF THE OPPOSITION: Thank you, Mr. Speaker. This person was government’s investment officer for financial services and GAMING. This is a fact. It is also a fact that the Premier’s company hired him directly from this role to become their [Discovery Garden’s] new CEO. Question to the Premier: Why is it that you know much more, and have much more direct ties to the file than you have let on to?

SOME HON. MEMBERS: Hear, hear!

PREMIER MACLAUCHLAN: Mr. Speaker, I have to confess I don’t know what it is that the Leader of the Opposition is referring to, but if he can shed some light on it, I may be able to make some inquiries. But if it’s something that is being done by a firm, in which I may have an involvement, I am in no position to comment since I don’t know what he’s referring to. I don’t take part in any business dealings, which is, in fact, the arrangements that anyone who has a Cabinet role has under the conflict of interest legislation. Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

+ + +

They threw Eden under the bus, lying both in the Legislative Assembly and to the media saying “management” was, nor would ever have been, involved!

Well, NEIL STEWART was MANAGEMENT at the time, and if you read the attached email that I received today in a Freedom of Information (FOI) request, I’m sure you’ll be able to decide for yourself whether this was a “one-off” by a rouge employee who then had to be punished and terminated.

It was also sent to Norm Macdonald, who is now senior manager at Health PEI.

Mary Moszynski, speaking for the government, referred to that “one paragraph” in the recruitment package put together by John Eden like it was something that just slipped by and was never seen by anyone else in government.

Look at all the information Eden sent to his boss at that time, Neil Stewart, and copied to Norm Macdonald: it’s not a paragraph, it’s eight pages of detailed information on several tax-haven possibilities!

A tad more than a paragraph eh Mary?

Also curious is that the “boss” [MacLauchlan] who quickly terminated this renegade employee [John Eden – THE senior recruiter] without blinking an eye for gross incompetence. Then he IMMEDIATELY HIRED him to be the CE0 of his company Discovery Garden.

Was that a reward for his humongous boo boo…. or payment for lying quietly under the bus?

Kevin J. Arsenault

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