April 28, 2003
Once in a while I find that there are a variety of issues concerning me, none of which by itself justifies a full column, but all of which demand attention.
Firstly, the MFP Inquiry. In my October 7, 2002 column OPP probes computer fiasco, I refer to "allegations that computer manufacturer Dell Canada was asked for a bribe by a ‘lobbyist,’ who suggested that ‘a member of city council’ thought the deal was ‘worth $150,000’. Even though a then-salesperson for Dell has suggested that the request may have been for a ‘success fee’, that cute little euphemism doesn’t mask the stench of corruption."
When no charges were laid by the OPP, and then a witness began to backtrack on the significance of bribery -v- success fees while under cross-examination, I began to wonder if I had been wrong. However, let’s take a look at the facts. A "success fee" is part of a deal negotiated by a lobbyist or representative as part of their compensation package for obtaining business for a client. It is negotiated "up front," and is conditional upon the deal closing. To demand a "success fee" in the final stages of arranging a deal is not standard practice. Within the context of this case, for lobbyist Jeff Lyons to suggest that "Tom" (Dell staff later testified that the only "Tom" they knew of at the city was then-budget chief Tom Jakobek) thought the deal was worth $150,000, would be a powerful incentive for the bidder to pay up.
It’s a simple matter of chronology; a previously-bargained "success fee" is legitimate, while a later or last-minute demand invites suspicion of unethical pressuring at best, or a bribery attempt or "shakedown" at worst. That would be why the OPP launched a probe. However, Jeff Lyons (who is represented at the inquiry by top lawyer Eddie Greenspan) could reasonably be expected to find refuge in the "benefit of the doubt" in court, thus no charges were laid. In my opinion, "corruption" or not, it still stinks.
And, it gets worse. Jeff Lyons appears to have been representing two competitors, Dell Computer and MFP Financial, at the same time!
In the April 14th transcripts of the inquiry, Dell Financial Services Ltd. (which is the financial arm of Dell Computers) Sales Manager Robert Simone, gave evidence that his sales representative Scott Marentette "overheard Mr. Jakobek ask Mr. Lyons what he was doing there with Scott from DFS. He (Jakobek) was under the impression that he was working for MFP. So, from what I understood, Jeff explained it as a bit of a misunderstanding, but Scott didn’t believe it, and he came and told me." And, later, "the conflict of interest is, if he (Lyons) was working with MFP on the same tender we were working with--with him, he was basically taking two clients to the--the same--the same potential client or--or the City of Toronto, and suggesting that both were, you know, the preferred source of financing, which is not appropriate."
Tom Jakobek may have had no more involvement than simply offering his personal opinion that $150,000 would be appropriate as a legitimate success fee for a contract of that size, if in fact he was involved at all. We shall learn more when he takes the stand.
Secondly, a warning for those with pets. Whenever I open the door of my small fridge, my cat Deva loves to climb inside to investigate the various foods and milk inside. In the past, I would close the door for a couple of minutes, then open it and make a big fuss, pretending to have forgotten about her. Well, one day recently I did forget about her, and she was inside for maybe six hours until I got up in the night and opened the fridge for a glass of milk. If I had not got up, she could well have died from lack of oxygen by morning. I can’t believe I did something so stupid. Never, ever allow any pet into the fridge, washer, dryer, or anything else. One instance of forgetfulness and your pet could be dead, and you will never forgive yourself.
Thirdly, as the United States has now commenced threatening Syria, and is looking for ways to "exclude" France from UN meetings, let’s look into the past for some guidance. The following declaration was made by U.S. Supreme Court Justice Samuel L. Jackson, America’s senior representative at the Nuremberg war trials: "We must make clear to the Germans that the wrong for which their leaders are on trial is not that they lost the war, but that they started it. And we must not allow ourselves to be drawn into a trial of the causes of the war, for our position is that no grievances or policies will justify resort to aggressive war. It is utterly renounced and condemned as an instrument of policy."
The recent picture in the newspapers of a dead boy lying by his bicycle in front of a U.S. tank with the words "Absolut Krieg" written on the gun barrel says it all.
Jeff Goodall worked for the Metro Treasury and City Finance Departments for 25 years, and served as a member of the CUPE Local 79 Executive Board for 14 of those years.