Prime Minister Justin Trudeau is in the headlines once again for a situation involving a potential conflict of interest. This time it has to do with a proposed contract to a supposedly non-profit organization called the WE Charity Foundation, run by two brothers: Craig and Marc Kielburger. The federal government initially awarded a sole-sourced contract for $19.5 million to WE Charity to administer a $912-million student grant program— meaning no requests for bids. Post-secondary students could volunteer up to 500 hours to receive a grant up to $5,000 under the proposed new Canada Student Service Grant (CSSG). The problem is that the PM’s family has close ties to WE Charity with his wife Sophie Grégoire Trudeau hosting a podcast called WE Well-being. Both Justin Trudeau and his wife have spoken at WE Days, as have the PM’s mother, Margaret Trudeau, and his brother, Alexandre Trudeau. It was uncovered that Margaret Trudeau had been paid $250,000 for 28 appearances and Alexandre Trudeau had been paid $32,000 for eight appearances. When the matter of awarding the contract for the CSSG came before Cabinet, neither Trudeau nor his Finance Minister Bill Morneau, whose family also had ties to the WE Charity, recused themselves from discussions about the contract. A big mistake for which the PM has now often apologized even before Parliament, the House’s Finance Committee and Canadians in general. Moreover, the CSSG contract to the WE Charity was withdrawn by the government as a result.
What makes matters worse is the fact that this is the third time that the PM’s actions have been investigated by the Ethics Commissioner. In the previous two cases, Trudeau was found to have broken federal ethics rules. Neither decision was sufficient to force the PM to resign and install an acting PM. Given that the opposition parties really don’t want to bring down the government at this time, in light of the pandemic and everything else, it is highly unlikely that Trudeau will resign and call an election. This despite the fact that he has a minority government and requires opposition support to govern. However, such scandals can eventually influence the electorate as people may not be ready to forgive the PM for his latest transgression.
Of course, the media loves such scandals and continue to uncover certain dirt with respect to the WE Charity itself, accusing Craig and Marc Kielburger of financially benefiting from the foundation, especially in its real estate holdings. As a result, the foundation is itself under close scrutiny for significant real estate holdings that received charitable status last year, the firing of half its workforce and the resignation of several Board of Directors members; including the former Chair, Michelle Douglas. Indeed, it appears that new information about WE financial irregularities preceding the scandal had come to light of which the Prime Minister’s Office should have been aware.
What does all this mean? The PM’s popularity rating had risen due to the federal government’s fairly good handling and coordination of national policies and programs in response to the coronavirus pandemic. However, recent polls show a slight decline in his popularity, but not enough to force Trudeau to resign or to dissolve Parliament. No one, including the official opposition Conservatives, wants an election at this time or in the near future. While any so-called scandal currently makes for good press and suggests incompetence, over time it usually dies out unless more serious revelations about political improprieties come to light. There may be a shake-up in Cabinet such as moving the Finance Minister to another portfolio, but that’s about all. In the meantime, the government must keep on governing in response to the pandemic, which in my view and that of most Canadians should be its priority. The nation and the economy need a steady hand at the helm, even if it may be shaking right now.
FROLITICKS 