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UPDATED: SNC Lavalin – Just the Facts Ma’am

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10 minute read

Opinion by Cory Litzenberger

Let’s take emotion out of it. Let’s take a look at the legislation. While I am not a lawyer, I do interpret tax legislation for a living, and so I decided to take a closer look at the criminal legislation pertaining to the SNC-Lavalin scandal.

The relevant legislation is in 《parentheses》below, but here is the Coles notes:

FACT – in 2015 SNC was charged by the RCMP under Section 3 of the Corruption of Foreign Public Officials Act

《3 (1) Every person commits an offence who, in order to obtain or retain an advantage in the course of business, directly or indirectly gives, offers or agrees to give or offer a loan, reward, advantage or benefit of any kind to a foreign public official or to any person for the benefit of a foreign public official

(a) as consideration for an act or omission by the official in connection with the performance of the official’s duties or functions; or

(b) to induce the official to use his or her position to influence any acts or decisions of the foreign state or public international organization for which the official performs duties or functions.》

FACT – In 2015, the RCMP charged SNC-Lavalin, along with its international division, with corruption and fraud in relation with their business dealings in Libya. The RCMP said officials at the company attempted to bribe several public officials in the country, including dictator Moammar Gadhafi, as well as other businesses in Libya.

FACT – The prosecutor is allowed to enter into a remediation agreement under Section 715.32 of the Criminal Code of Canada , if ALL conditions are met under 715.32(1).

《715.32 (1) The prosecutor may enter into negotiations for a remediation agreement with an organization alleged to have committed an offence if the following conditions are met:

(a) the prosecutor is of the opinion that there is a reasonable prospect of conviction with respect to the offence;

(b) the prosecutor is of the opinion that the act or omission that forms the basis of the offence did not cause and was not likely to have caused serious bodily harm or death, or injury to national defence or national security, and was not committed for the benefit of, at the direction of, or in association with, a criminal organization or terrorist group;

(c) the prosecutor is of the opinion that negotiating the agreement is in the public interest and appropriate in the circumstances; and

(d) the Attorney General has consented to the negotiation of the agreement.》

FACT – for the prosecutor to evaluate their public interest opinion, they must consider subsection 715.32(2) in its entirety which includes many relevant pieces of information except when 715.32(3) overrides it

《 Factors to consider

715.32(2) For the purposes of paragraph (1)(c), the prosecutor must consider the following factors:

[(a) to (h)]; and

(i) any other factor that the prosecutor considers relevant.》

FACT – 715.32(3) says even with all those factors to consider, you can NOT factor in the national economic interest (ie: the jobs argument) if they were charged the way the RCMP charged them

《Factors not to consider

715.32(3) Despite paragraph (2)(i), if the organization is alleged to have committed an offence under section 3 or 4 of the Corruption of Foreign Public Officials Act, the prosecutor must not consider the national economic interest, the potential effect on relations with a state other than Canada or the identity of the organization or individual involved.》

CONCLUSION – the jobs argument is irrelevant under the law in these circumstances – The prosecution knows this – The former Attorney General knows this – and based on the provisions as written, the jobs argument for SNC does not meet the legal requirement for a remediation agreement.

For these reasons, I find in favour of the former Attorney General.
— — — —

Update: While being interviewed on the afternoon of March 7, 2019, I looked even closer at the legislation and caught something I didn’t realize on first glance when reading it.

Notice at the end of 715.32(1)(c) the word “and”.

While I said this means that all of the tests in (a) through (d) must be met, I neglected to say that this means no one person has the sole final decision. The prosecutor is mentioned in (a), (b), and (c); while the Attorney General is only mentioned in (d).

To put another way, this law is written so that it is not solely the decision of the Attorney General, nor the prosecutor. Rather, it requires both the Attorney General and the Prosecutor to agree to proceed with negotiations.

Similar to a scene in the movies where you see nuclear codes kept between two different military heads before proceeding with the launch, such is the wording of this provision.

This means that the Attorney General does not have the final decision and so any suggestion that she does is incorrect. The decision is a joint one with most of the leg work having to be done by the prosecutor, not the Attorney General.

So let me recap: I think it is quite simple, that a Remediation Agreement (aka Deferred Prosecution Agreement) cannot be considered under the “national economic interest” (jobs) argument based on what legislation the RCMP used for the charges.

If that’s the argument, then the answer is “no” and the repeated number of times asking for the former Attorney General to revisit it over a four month period for something that appears so black and white might be considered workplace harassment if I were to do such a thing to one of my colleagues.

So, since the economic argument is moot, what other argument is there?

We heard in testimony that the parties may have wanted the Attorney General to look at it from a stance that does not imply economic interest.

Ironically, “we need to win an election” may actually be legal as “any other factor that the prosecutor considers relevant” but then we would have to assume the prosecutor would have to be partisan, and that is highly not likely in my experience.

So we now know that there must be an agreement between the prosecutor and the Attorney General.

We also know that “economic interest” cannot be the reason under the law.

So, if the law is that clear on economic interest, why would the Attorney General be asked repeatedly for reconsideration, unless it was not “economic interest” they wanted her to consider?

For these additional reasons, I still find in favour of the former Attorney General

Update #2: On March 8, 2019, the Federal Court of Canada ruled in favour of the Public Prosecution Service on SNC Lavalin’s request for judicial review citing:

“The law is clear that prosecutorial discretion is not subject to judicial review, except for abuse of process.” – Federal Court of Canada Justice Kane

Then, on March 11, 2019, the Organisation for Economic Co-operation and Development (OECD) came to the same conclusion as my interpretation of the law regarding the intention of the 1999 agreement, and said:

“political factors such as a country’s national economic interest and the identity of the alleged perpetrators must not influence foreign bribery investigations and prosecutions.” – OECD

We now have confirmation that there is no legal way that a country’s national economic interest can be considered under the law.

For these additional reasons, jurisprudence about the authority of the Public Prosecution Service, and third party reports about the intentions of the 1999 agreement from the OECD, I still find in favour of the former Attorney General for a third time.

Click to listen to Red Deer Accountant Cory Litzenberger on Charles Adler Tonight

Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr is the President & Founder of CGL Strategic Business & Tax Advisors; you can find out more about Cory’s biography at http://www.CGLtax.ca/Litzenberger-Cory.html

CEO | Director CGL Tax Professional Corporation With the Income Tax Act always by his side on his smart-phone, Cory has taken tax-nerd to a whole other level. His background in strategic planning, tax-efficient corporate reorganizations, business management, and financial planning bring a well-rounded approach to assist private corporations and their owners increase their wealth through the strategies that work best for them. An entrepreneur himself, Cory started CGL with the idea that he wanted to help clients adapt to the ever-changing tax and economic environment and increase their wealth through optimizing the use of tax legislation coupled with strategic business planning and financial analysis. His relaxed blue-collar approach in a traditionally white-collar industry can raise a few eyebrows, but in his own words: “People don’t pay me for my looks. My modeling career ended at birth.” More info: https://CGLtax.ca/Litzenberger-Cory.html

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Energy

It should not take a crisis for Canada to develop the resources that make people and communities thrive.

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From Resource Works 

By

Canada is suddenly sprinting to build things it slow-walked for a decade.

“Canada has always been a nation of builders, from the St. Lawrence Seaway to Expo 67. At this hinge moment in our history, Canada must draw on this legacy and act decisively to transform our economy from reliance to resilience. We are moving at a speed not seen in generations,” announced Prime Minister Mark Carney at the end of August.

He was echoed by British Columbia Premier David Eby shortly after.

“There’s never been a more critical time to diversify our economy and reduce reliance on the U.S., and B.C. is leading the way in Canada, with clean electricity, skilled workers and strong partnerships with First Nations,” the premier stated after his government approved the Ksi Lisims LNG project, led by the Nisga’a nation.

In the face of President Donald Trump’s tariffs, Ottawa has unveiled a first wave of “national projects” that includes an expansion of LNG Canada to 28 million tonnes a year, a small modular reactor at Darlington, two mines, and a port expansion, all pitched as a way to “turbocharge” growth and reduce exposure to a trade war with the United States.

The list notably excludes new oil pipelines, and arrives with rhetoric about urgency and nation-building that begs a simple question: why did it take a crisis to prioritize what should have been routine economic housekeeping?

The most tangible impact of resource projects can be observed in the impact it has on communities. The Haisla Nation is enjoying an economic renaissance with their involvement in the LNG Canada project on their traditional lands, which became operational in June.

Furthermore, the Haisla are set to unveil their own facility, Cedar LNG, in 2028. Already, the impact of employment and strong paycheques in the community is transforming, as former Haisla Chief Councillor Crystal Smith as attested many times.

Former Haisla Chief Councillor Crystal Smith.

“Let’s build a bright and prosperous future for every Canadian and every Indigenous person that wants to be involved, because change never happens inside of our comfort zones, or the defensive zone,” said Crystal Smith at a speech delivered to the 2025 Testimonial Dinner Award on April 24 in Toronto.

Fortunately, the new pro-resource posture has a legislative backbone. Parliament passed the One Canadian Economy Act to streamline approvals for projects deemed in the national interest, a centrepiece of the government’s plan to cut internal trade barriers and fast-track strategic infrastructure.

Supporters see it as necessary in a period of economic rupture, while critics warn it risks sidelining Indigenous voices in the name of speed. Either way, it is an admission that Canada’s previous processes had become self-defeatingly slow.

British Columbia offers a clear case study. Premier David Eby is now leaning hard into liquefied natural gas. His government and Ottawa both approved the Nisga’a Nation-backed Ksi Lisims LNG project under a “one project, one review” approach, with Eby openly counting on the Nisga’a to build support among neighbouring nations that withheld consent.

It is a marked turn from earlier NDP caution, framed by the premier as a race against an American Alaska LNG push that could capture the same Asian markets.

Yet the pivot only underscores how much time was lost. For years, resource projects faced overlapping provincial and federal hurdles, from the Impact Assessment Act’s expanded federal reach to the 2018 federal tanker ban on B.C.’s north coast.

Within B.C., a thicket of regulations, policy uncertainty, and contested interpretations of consultation obligations chilled investment, while political positions on pipelines hardened. Industry leaders called it “regulatory paralysis.” These were choices, not inevitabilities.

The national “go-fast” stance also arrives with unresolved tensions. Ottawa has installed a Calgary-based office to clear and finance major projects, led by veteran executive Dawn Farrell, and is touting the emissions performance of LNG Canada’s expansion.

Dawn Farrell, head of the Major Projects office in Calgary.

At Resource Works, we wholeheartedly endorsed the move, given the proven ability and success of Dawn Farrell in the resource industry. It must also be acknowledged that the major projects office will only be an office unless it meaningfully makes these projects happen faster.

A decade that saw eighteen B.C. LNG proposals produced one major build, and moving to LNG Canada’s second phase is entangled with power-supply constraints and policy conditions. That slow cadence is how countries fall behind.

If the current urgency becomes a steady habit, Canada can still convert this scramble into lasting capacity. If not, the next shock will find us sprinting again, only further from the finish line.

Resource Works News

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Business

Carney’s Floor-Crossing Campaign. A Media-Staged Bid for Majority Rule That Erodes Democracy While Beijing Hovers

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In a majority government, an unprecedented and risky, course-altering national policy — deepening ties with Beijing while loosening ties with Washington — is considerably easier to execute.

On budget day, Ottawa’s reporters were sequestered in the traditional lock-up, combing through hundreds of pages, when Politico detonated a perfectly timed scoop: Conservative MP Chris d’Entremont was weighing a jump to Mark Carney’s Liberals. Within hours, he crossed, moving the government to within two seats of a majority — one that would guarantee Carney’s hold on power until 2029 — without Canadians casting a single ballot.

This was no ordinary budget day. By orchestrating a floor-crossing during a media lock-up, the Liberals blurred scrutiny of a historic spending plan while inching toward a de facto majority. That sequence raises deeper concerns about media–political entanglements and the democratic legitimacy of building a majority outside the polls.

Toronto Sun columnist Brian Lilley, in a deeply reported Substack post yesterday, captured months of palace intrigue. A well-sourced politics reporter with lines into Conservatives and Liberals alike, he lays out the knowns, the known unknowns, and the plausible backroom plays. Carney’s courting began right after the April 28 election that left him sitting at 169 seats, Lilley writes. For weeks, the Liberals probed for weak ribs in the Conservative caucus; and on November 4, they landed one.

“One thing is clear, the Liberals have been trying to poach a lot of Conservative MPs and doing everything they can to convince them to cross the floor,” he concluded.

Why? According to Lilley, Carney has been “governing for the most part like he has a majority, and he clearly doesn’t want to engage in the horse trading that a minority Parliament requires, so poaching MPs can solve his problem.”

The fallout was already clear to see last week. And it doesn’t look good for Canadian democracy or Canadian media, which receives significant government subsidies. Even at surface level, the press corps was visibly distracted from its first duty to citizens: scrutinizing a historically large budget packed with nation-building promises and unanswered questions about feasibility. Veteran reporters have already acknowledged this.

In another piece this weekend, Catherine Tunney, a solid CBC reporter, explained how Pierre Poilievre was undermined this way: “For the Opposition, budget week is a communications gift. It’s an easy way for the party to call out government spending,” she wrote. “For a leader who has built his brand on calling out Liberal spending, tabling a budget with a $78-billion deficit is the political equivalent of pitching a strike straight down the middle to Dodger slugger Shohei Ohtani.”

But instead, “of taking a victory lap around the bases, [Poilievre] ended the week facing questions about his leadership — after losing one MP to his rivals and another resigning from federal politics altogether.”

The messaging continued yesterday, with another CBC report amplifying the Liberals’ narrative that Conservative leaders were actively bullying MPs not to cross.

CBC had to issue a correction. After publishing d’Entremont’s account that senior Conservatives “pushed” his assistant, CBC later updated the story to clarify that Andrew Scheer and Chris Warkentin “pushed open the door,” and the aide stepped aside — a meaningful distinction.

Stepping back from the noise, there is a deeper problem.

Making honeyed promises to floor-crossers is legal in Canada’s democracy. But Canada is in a mounting trade war involving China and the United States, in an increasingly dangerous, cutthroat geopolitical environment. Already, the prime minister is pledging renewed engagement with Beijing as a strategic partner.

Doing so in a minority Parliament means facing tough accountability questions — and bruising inquiries in ethics committee hearings. In a majority government, an unprecedented and risky, course-altering national policy — deepening ties with Beijing while loosening ties with Washington — is considerably easier to execute.

And what kind of partner is Carney choosing? Yesterday, Japan lodged formal complaints after a senior Chinese diplomat took to social media and threatened to “cut [the] dirty neck” of Japan’s new leader over her stance on Taiwan. On Friday, Prime Minister Sanae Takaichi had said a Chinese attack on Taiwan could constitute “a survival-threatening situation” for Japan, potentially requiring the use of force.

“We have no choice but cut off that dirty neck that has been lunged at us without hesitation. Are you ready?” Chinese Consul General Xue Jian said in a message posted on X, which was later deleted.

This is the government Carney is rapidly sliding closer to. The same regime that jailed Canadians Michael Kovrig and Michael Spavor in the Meng Wanzhou affair — and a government that, Canadian intelligence has warned, attempts to shape media narratives in Canada.

As The Bureau reported in 2023, Canada’s own Privy Council Office warned in a January 2022 Special Report that Beijing’s United Front Work Department targets Canadian institutions.

In a section alleging Beijing “manipulates traditional media” in Canada, the report details press conferences held in January 2019 by former Toronto-area Liberal cabinet minister John McCallum, to argue that Canada’s detention of Huawei executive Meng Wanzhou was illegal. McCallum, then ambassador to China, was forced to resign after the Conservative opposition condemned his comments.

In the fallout, according to the Privy Council Office report, Canadian intelligence uncovered that several Chinese diplomats in Canada were voicing support for McCallum. One Chinese consulate official “sent information” to an unidentified Canadian media reporter indicating Chinese Canadians have favourable impressions of McCallum, the report says.

Now back to Ottawa media’s role. Why and how did Politico get the floor-crossing scoop during the budget lock-up — and then, that same evening, co-host a post-budget reception branded “Prudence & Prosecco” at the Métropolitain Brasserie, where Finance Minister François-Philippe Champagne and well-placed Liberals mingled with reporters? Every veteran reporter knows political parties try to influence the press — they’re called spin doctors for a reason. But darker forces can ride the same channels. In Brussels, for example, European security services are investigating a former Politico reporter over alleged ties to Chinese intelligence — still unproven, but a cautionary tale about the murkiness of media–political ecosystems.

Lilley also documents how coverage of another rumoured floor-crosser, Matt Jeneroux, became part of last week’s fog machine. The Toronto Star reported a private meeting between Jeneroux and Carney involving senior Liberal strategists Braden Caley and Tom Pitfield; Jeneroux issued categorical denials to senior Conservatives. “Someone is lying,” Lilley writes — and whether or not a second crossing was imminent, the destabilization served its purpose. Other names floated, such as Michael Chong, were so implausible as to raise suspicion of calculated disinformation.

“I didn’t buy Chong either, but Liberals kept pushing that narrative,” Lilley wrote. “As someone who knows Michael a bit, I simply didn’t believe it, didn’t even reach out to ask — he later called me to confirm the rumours were bogus.”

It is geopolitically notable that Michael Chong — sanctioned by Beijing and repeatedly targeted in PRC pressure campaigns, including a Chinese intelligence operation targeting Chong and his family that Justin Trudeau’s government failed to notify him about — saw his name tossed into this mess. Who benefits from saddling Chong with corrosive rumours?

It would seem that not only the Liberals benefit, but so do Carney’s new “strategic partners” in Beijing. None of this proves any newsroom has wittingly acted in bad faith, nor is there any evidence that Beijing’s shadow looms in the Liberals’ media playbook. But it does suggest how a coordinated political operation can be abetted by domestic media distraction.

Now, consider darker possibilities that could be in play. Not necessarily last week, but in any number of major events and stories shaping relations among Canada, China, and the United States.

The bipartisan NSICOP 2024 Review into allegations of Chinese election interference in Canada’s last two federal elections found that “during the period under review, the intelligence community observed states manipulating traditional media to disseminate propaganda in what otherwise appeared to be independent news publications.”

It added: “Foreign states also spread disinformation to promote their agendas and consequently challenge Canadian interests, which posed the greatest cyber-threat activity to voters during the time under review.”

The report continued: “These tactics attempt to influence public discourse and policymakers’ choices, compromise the reputations of politicians, delegitimize democracy, or exacerbate existing frictions in society.”

According to the intelligence community, “the PRC was the most capable actor in this context, interfering with Canadian media content via direct engagement with Canadian media executives and journalists.”

So what do we have here? Carney’s Liberals have a natural interest in destabilizing the Conservatives and sending Pierre Poilievre — a prosecutorial-style politician who excels at exposing his opponents’ weaknesses — into early political retirement. Arguably, they have a well-founded interest in dividing the Conservative Party itself.

But using the media to float names of opposition MPs who never intended to cross is disinformation, plain and simple. And when that name is Michael Chong — long targeted by Beijing — the stakes rise. If Carney is tilting toward a “strategic partnership” with Beijing, and if that delays the Foreign Influence Transparency Registry, as critics such as Dr. Charles Burton warn, then the tactics on display have moved from questionable to unacceptable — and risk entangling the interests of the Liberal Party of Canada with those of the Chinese Communist Party in Beijing.

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