[mobglob-discuss] Bid Corp Conflicts of Interest (part 3)

Mon Feb 17 10:54:57 PST 2003

For immediate release
February 17, 2003

CONFLICTS OF INTEREST IN THE VANCOUVER-WHISTLER 2010 BID CORP

The No Games 2010 Coalition has most recently expressed concern
regarding the issues of conflict of interest and special interests
associated with the Vancouver/Whistler 2010 Bid Board of Directors. As
such, we have demanded from the Bid Corp. – full and thorough
transparency with respect to the immediate disclosure of the Conflict
of Interest declarations by the Bid Board Members and full divestiture
of the Members, their family members and business partners with respect
to commercial ventures and assets. Such public declarations must
guarantee that the Members, their families and business partners will
not profit in any way from the 2010 Winter Games.

The 2010 Olympic Games Executive has repeatedly stated that every Bid
Board Member and Staff member has in fact entered into a binding
Conflict of Interest agreement, however, the documents have not been
publicly released. We note that the Toronto Bid Corp. provided public
access to Conflict of Interest declarations during Toronto’s bid for
the 2008 Olympic Games. Failure to release these declarations will
raise concerns that 2010 Bid Corp. Directors are in potential Conflict
of Interest situations in relation to the Winter Games.

The No Games Coalition has recently called the public’s attention to
several issues pertaining to the composition of the 2010 Bid Board of
Directors. In doing so, obvious questions arise. 
We have queried the seemingly disproportionate number of Games Bid
Board Members who also represent Concert Properties as Directors. Jack
Poole (Chair of Concert Properties, formerly Greystone, previously
Vancouver Land Corporation); David Podmore (President & CEO and head of
Team 2010); Ken Georgetti and Tony Tennessy (Directors). 
We note that Concert Properties, initially established to provide low
income housing, is now a major residential developer at a BC ski resort
(Silver Star Mountain); listed as owner of 13 high-rise buildings
(including office towers); and partner in the hospitality sector as a
partner with the Victoria Marriott Hotel.

We have also asked the question as to ‘how Bid Board Member Mr. Caleb
Chan could not directly benefit from the Vancouver/Whistler Olympic
Games’ - upon examination of his vast holdings of hotels, lodges, golf
courses, office buildings, clubs and residential communities, many
located in the Vancouver/Sea to Sky corridor.

The million-dollar question (or should we say billion-dollar question)
is ‘who benefits the most from the Vancouver/Whistler 2010 Winter
Games’. 
The obvious answer is simply ‘he who has the most to gain ’.

On this note, let us step back in time to 1986. Vancouver hosted
Expo’86, an international event not unlike the scale of the proposed
2010 Winter Games. One and a half years later, then Premier Bill Vander
Zalm concluded the sale of the Expo lands 
(84- hectare  site on False Creek, representing one-sixth of downtown
Vancouver) to Li Ka-Shing (and the Hui family) for a reported price of
$145 million (said by many to be far too low, especially considering
the tens of millions of dollars the province spent to complete the
environmental clean-up of the site). 
Subsequently, his company, Concord Pacific Holdings, redeveloped the
site into a multi-billion dollar downtown residential community. 

Bid Board Member, Stanley Tun-li Kwok describes himself at one of his
corporate websites as ‘Mastermind of Expo '86’. 
Mr. Kwok is Former Deputy Chairman for Concord Pacific (noteworthy to
mention at this time is that Bid Board Director David McLean is the
current Chairman of the Board of Concord Pacific). 
Concord Pacific is the owner of Burcon International Developments Inc.,
one of North America's leading real estate development, investment and
management organizations with assets over C$1 billion. Based in
Vancouver, B.C.
Burcon is the controlling shareholder of Oxford Properties Group Inc.
(owner of Marathon Realty).
Mr. Kwok is  Principal, Stanley Kwok Consultants Inc. and Development
Consultant for the South East Shore of False Creek. 
He is also a Director of Li Ka-Shing’s Cheung Kong (Holdings) Limited
(The Cheung Kong Group operates in 41 countries and employs over
163,000 staff worldwide with a combined market capitalization of HK$439
billion as at January 31, 2003). 
Kwok is Director, Amara International Investment Corporation (a
Vancouver-based private company specializing in real estate investment
and in locating Asian partnerships for projects). 
His additional Directorships include: Li Ka-shing’s companies:
Omnipoint Corporation, priceline.com Incorporated, VoiceStream Wireless
Corporation, Western Wireless Corporation, Global Crossing Ltd.,
Breakaway Solutions Inc. and Husky Energy Inc. (Husky Board Members
also include: Stanley’s wife Eva, Terry Hui, President and CEO of
Concord Pacific Group Inc., Martin Glynn President, Chief Executive
Officer and a director of HSBC Bank and Victor Li, son of Li Ka-shing &
 Managing Director and Deputy Chairman of Cheung Kong (Holdings)
Limited Canada). 
Bank Director positions include:  Bank of Montreal and CTC Bank of
Canada. 
Additionally, he is a Joint Venture Partner with TYBA Group Inc and
Dong Ah Construction Industrial of Seoul, South Korea in the Crystal
Project , a CAN$200 million development in suburban Vancouver that also
includes 55,000 square feet of office space, a 210,000 square-foot
retail area, a 22,500 square-foot conference center and a 218-unit
residential complex.

As noted, Concord Pacific, Li Ka-Shing and Hui family owned, is
significantly represented on the Bid Board – with David McLean
(Chairman of the Board and a Director of Concord Pacific Group Inc.)
and Stanley Kwok Tun-li (Former Deputy Chairman for Concord Pacific).

Mr. Mclean is also involved with the following business interests: 
Founding Chairman of the Vancouver Board of Trade Foundation
Founder and Chairman, Vancouver Film Studios
Chairman of the Board, The McLean Group (which has developed numerous
residential, office, retail and industrial properties)
Director, DeHavilland Aircraft of Canada 
Director, Northwestel, 
Director, CANAC Consultants Ltd.
Director, Nu West Group
Founding Chairman of Westech Information Systems (the former
information systems arm of B.C. Hydro, and led the company through
privatization from its parent company)
Former Chairman of the Board of Coastland Wood Industries 
Chair, CN Rail.

Now, try to follow the bouncing ball:

HSBC (of which Li Ka-shing is  a Principal and Director) is aptly
represented on the Bid Board by Eric Major, Director, HSBC Capital
(Canada) Inc. and Milton Wong, Chair, HSBC Asset Management Canada Ltd.
(responsible for assets of $4 billion at HSBC). HSBC purchased M.K.
Wong & Associates to form HSBC Asset Management Canada Ltd. 

Merrill Lynch Canada (reportedly owned by Thomas Fung, Fairchild Group)
is represented on the Bid Board by Guy Savard, Vice-Chair & Chair,
Quebec Operations, Merrill Lynch Canada Inc. 
Merrill Lynch International is reportedly owned by Li Ka-shing and
Thomas Fung.

Bid Board Member, Ms. France Chrétien-Desmarais is daughter of the
Honourable Jean Chretien, Prime Minister of Canada. 
Mr. Chretien, was from 1986 to 1990 a Senior Advisor with Gordon
Capital Corporation in Montreal. 
Gordon Capital is principally owned by Richard Li (Li Ka-Shing’s son)
Gordon Capital owns HSBC Securities. 

Ms. Chretien-Desmarais husband is Andre Desmarais, President and
Co-Chief Executive Officer of the family-owned Power Corporation of
Canada 
Power Corporation of Canada is a diversified management and holding
company. Power Corporation of Canada has holdings in leading financial
services and the communications sector. 
Through its European-based affiliate Pargesa group, Power Corporation
holds significant positions in major media, energy, water, waste
services, and specialty minerals companies. Power Corporation also has
diversified interests in Asia. 
Power Financial Corporation is a diversified management and holding
company with interests in the financial services industry in North
America. Its Europe-based Pargesa group, holds significant positions in
major media, energy, water, waste services, and specialty minerals
companies. 
Great-West Lifeco Inc.: The Great-West Life Assurance Company, London
Life Insurance Company, Great-West Life & Annuity Insurance Company. 
Investors Group Inc. is one of Canada's leading financial services
companies with over $41.6 billion in assets under management and a
network of 3,400 consultants. 
Mackenzie Financial Corporation is an integrated financial services
company whose core business is the management of mutual funds in
Canada, with $33.4 billion in assets under management, and distribution
relationship with over 37,000 independent financial advisers. 
Pargesa Holding S.A. holds significant positions in a selected number
of large companies based in Europe. These companies operate in
strategic industries including media, energy, public utilities and
specialty minerals. 
Gesca Ltée holds a 100 per cent interest in the Montreal daily
newspaper La Presse and six other daily newspapers in the province of
Quebec and Ontario.

Power Corporation of Canada is a partner with Li Ka-shing in CITIC
Pacific Limited  (China's largest diversified Hong Kong-traded company.
Its activities are concentrated in four main areas: infrastructure,
trading and distribution, real estate and industrial manufacturing).

Mr. Desmarais is a Director and/or Member of the Board of: Great-West
Lifeco Inc., Investors Group Inc., London Insurance Group Inc., Pargesa
Holding S.A., Groupe Bruxelles-Lambert S.A., Bertelsmann A.G. 
Mr Desmarais is also a Director of CITIC Pacific Ltd. and Bombardier
Inc.

In addition, Mr. Desmarais is Chairman of the Canada China Business
Council; Member of the International Advisory Council of CITIC; Member
of the Trilateral Commission; Member of the Chairman’s International
Advisory Council of the Americas Society; Member of the Business
Council on National Issues and Member of diverse foundations and trusts
in Canada and a Member of the Hong Kong Chief Executive's Council of
International Advisers (The CECIA advises the Chief Executive from an
international perspective on strategic issues pertinent to the
long-term development of Hong Kong).

As mentioned, Ms. Chretien Desmarais’ husband Andre is a Director of
Bombardier Inc. 
Also on the 2010 Games Bid Board is Mr. Laurent Beaudoin, Chair,
Bombardier Inc. Bombardier stands to gain significantly from their
supply of the $1.5 billion to $2 billion Vancouver/Richmond Rapid
Transit line proposed by the 2010 Bid Corp. 
Bid Board Member, Arthur Griffiths was Chair of Public Consultation,
Rapid Transit Project 2000.
The present rapid transit line was built to accommodate Expo’86.

Let us now take a departure (of a few thousand kilometers east) to
Toronto –
to perhaps identify a few more coincidences.

Concord Pacific’s CityPlace is a 44-acre development site in downtown
Toronto, on which 5.5 million square feet of residential and commercial
space are to be built. 
Li Ka-shing reportedly also holds an exclusive right to use the CN
Tower for a period of 35 years (obtained for $2 billion CDN). 
Financier Robert Fung, was appointed by Prime Minister (and former
business partner) Jean Chretien to Chair the Toronto Waterfront
Revitalization Task Force on behalf of the Government of Canada, the
Province of Ontario and the City of Toronto. The new corporation was to
involve construction of large-scale infrastructure projects that would
permanently improve Toronto’s waterfront, as well as support the city’s
bid for the 2008 Olympics. 
His report detailed a strategic business plan for the $12 billon
renewal, development and financing of Toronto's waterfront.
Fung was afterward appointed as Chair of the Toronto Waterfront
Revitalization Corporation. 
Robert A. Fung is Deputy Chairman of Yorkton Financial Incorporated. 
>From 1980 to 1997, he was the vice-chairman and a director of Gordon
Capital Corporation. 
Upon leaving Gordon Capital, he joined Capital West where he was a
senior partner. From 1967 to 1978, he was vice-president and a director
of Dominion Securities Limited with responsibilities for its investment
activities in Asia and the Middle East. 
He began his career in the investment industry in 1964 with Wood Gundy.

He is Chairman of Crystallex International Corporation, SMART Toronto
as well as a director of Canada's Export Development Corporation, Asia
Pacific Foundation of Canada, GLOBE Foundation of Canada, and
StockHouse Media Corporation. 
He was a member of the Prime Minister of Canada's Advisory Committee on
Asia Pacific Economic Cooperation, as well as a member of the
Government of Canada's Department of Industry International Trade and
Agriculture Team Canada Inc. Advisory Board, which provided advice to
the Government of Canada in setting strategic direction and performance
objectives for Canada's International Business Development. 
He was also deputy-chairman of high-tech brokerage Yorkton Securities
Inc and Executive Chairman of Crystallex International Corp.

Fung's son Robert Jr. worked as a developer on Vancouver's False Creek
development with Concord Pacific Group Inc. 
Fung's university roommate, long-time friend Paul Martin, prime
minister in waiting, was a former senior executive with Power Corp. and
Consolidated Bathurst. 
Martin served as CEO of both CSL Inc. and Canada Steamship Lines. 
Martin eventually purchased Canada Steamship Lines from Power Corp. for
$180 million.

Back to Vancouver/Whistler:

When identifying the potential benefit of special interest groups
associated with the 2010 Winter Games, a particular sector is the ski
resort industry. 
Intrawest is represented on the Bid Board by Doug Forseth, Senior VP,
Operations, Whistler and Blackcomb Mountains. 
TAL Global Asset Management (owned by CIBC) is the largest
institutional shareholder of Intrawest (reportedly 15%). 
Li- Ka-shing is reportedly the largest shareholder (maximum allowable
10%) of CIBC. 
CIBC owns Wood Gundy. 
Intrawest is the leading developer and operator of village-centered
destination resorts across North America. Intrawest owns or is involved
in 14 mountain resorts in North America and Europe along with two
warm-weather resorts in the U.S. 
The company also has an interest in Alpine Helicopters Ltd., owner of
Canadian Mountain Holidays, the largest heli-skiing operation in the
world and Compagnie des Alpes, the largest ski operator in the world in
terms of skier visits (13 million in 2000/2001). 
Intrawest also has land on which to build 20,000 more units. 
Intrawest holdings include ski resorts, residential communities,
retail, hotels and lodges.

The Bid Corp. has identified rental costs payable to Intrawest for
facility usage during the Winter Games at $10 million to $30 million.

In addition to Concert Properties’ real estate development interest in
other ski resorts and Intrawest’s vast resort holdings, other Bid Board
members are intimately involved in the ski resort industry:

a) Kerrin Lee-Gartner (listed as Canadian Olympic Athlete - Alpine
Skiing) is Principlal, Kerrin Lee-Gartner’s Snow Creek Lodge and
Principal, Fernie Alpine Resort 

 b) Nancy Greene Raine (listed as Director of Skiing, Sun Peaks Resort;
Canadian Olympic Athlete - Alpine Skiing) is Principal, Nancy Greene’s
Cahilty Lodge, Sun Peaks, BC; President, NGR Resort Consultants Inc.;
Proponent with husband Al Raine of Melvin Creek/Cayoosh, $500 million
four-season ski resort (90 minute drive from Whistler). Al Raine was
responsible for the planning of Whistler.

Perhaps this is a good time to re-visit the $billion question: 
Who benefits the most from the 2010 Winter Games? 

Do we see any trends here that may help us find the answer?

·	The hosting of major International events (i.e.: Expo’86, Toronto
2008 Olympic Bid and Vancouver/Whistler 2010 Olympic Bid).
·	The funding of billions of dollars of infrastructure paid by
taxpayers (of course there is the argument that funds that would not be
received otherwise from the Feds assist in the costs – but where does
the money from the Feds come from? – perhaps taxpayers) 
·	The purchase of large tracts of development property 
·	The subsequent multi-billion dollar mega-developments 

Could the answer to the $billion question perhaps be - he who owns the
multi-billion dollar mega developments?

If so, would his interests be significantly represented on the 2010
Winter Games Bid Board?

Unfortunately – this is not the end of the story for taxpayers of
British Columbia.

We must ask ourselves a few more questions:

Can anyone really rationalize the spending of billions of dollars of
taxpayers money for infrastructure projects associated with a couple of
weeks of sporting activities?

Could it be that the infrastructure is really needed for
mega-development purposes instead of the needs associated with a few
weeks of Games?

Is it perhaps peculiar that Bid Board Members are the Convention Centre
Expansion Task Force Chair Peter Armstrong and Rick Antonson, Member &
Spokesperson, Convention Centre Expansion Task Force – who are the ones
that have told us how badly we need the expansion, irrespective of the
Winter Games?

Is it ironic that 2010 Bid Board Members: Jack Poole, David Podmore and
Ken Georgetti proposed to build the Convention Centre, inclusive of a
casino, almost a decade ago?

Is it also ironic that the three approved Convention Centre Expansion
bidders were then decided to be: Concert Properties, Concord Pacific
and Marathon Realty?

Could there be extensive Sea to Sky corridor development plans
requiring the Hwy. 99 upgrade?

Is it ironic that Bombardier is so aptly represented on the Bid Board
and stands to pick up a multi-billion contract for the proposed
Vancouver/Richmond line (as they did with Expo’86)?

Is it a coincidence that Bid Board Member, Arthur Griffiths was Chair
of Public Consultation, Rapid Transit Project 2000, charged with the
public-view task of addressing our rapid transit needs?

Can anyone actually believe that the 2010 Board Members who own hotels,
resorts, lodges, office buildings, golf courses, retail businesses,
construction companies, development companies, transportation
companies, financial institutions, etc…etc…etc…will not benefit
directly from the Games?

Are we so naïve as to believe that they believe it?

AND HERE COMES THE REALLY SAD PART FOR TAXPAYERS:

Do we really believe that the infrastructure projects will not take
place irrespective of the 2010 Winter Games Bid success?

Have we not noticed that the Toronto Waterfront Revitalization
infrastructure was decided as a ‘GO’ even after the city’s failed bid
for the 2008 Games?

Did we notice the Feds’ flag-waving when they decided to retain their
commitment to the Federal (taxpayer-generated) funding for these
infrastructure projects?

Do we not realize that the same will occur in BC?

Do we not realize that the 2010 Winter Games may or may not come to BC
– but the mega-projects will and that the taxpayers will inevitably
pick up the infrastructure costs?

Once the infrastructure has been built – how long will it be before the
assets will be privatized and handed over to the private sector for
‘cost-saving measures’?

Is it a coincidence that the Bid Board includes the likes of Larry
Bell, who established Urban Transit Authority (B.C. Transit), 1978;
Responsible for the Privatization - Housing Corp. of B.C. ('79), B.C.
System Corp. ('82), B.C. Hydro Gas ('88), B.C. Hydro Rail ('88) and was
the Former Member of Government of B.C. Public/ Private Partnership
Task Force AND now Chair and CEO, BC Hydro during the
Accenture-privatization process?

How about Bid Board Member David McLean, Founding Chairman of Westech
Information Systems, the former information systems arm of B.C. Hydro,
who led the company through privatization from its parent company?

Is it a coincidence that Premier Campbell has just announced the need
to privatize BC Rail and the Games Bid Board includes: David McLean,
Chair, CN Rail; Peter Armstrong, President & CEO, Great Canadian
Railtour Company Ltd. And Rick Antonson, Former Vice President of Great
Canadian Railtour Company Ltd.

Or maybe, Suzanne Denbak, “consultant with Price Waterhouse,
specializing in public/private partnerships in the hospitality
industry”?

Could the answers to these questions give us (the BC taxpayers) an
understanding of what is really going on here and that it might not
just be the ‘Spirit of Games’ at heart to some who may have alternative
interests in seeing the taxpayers funding of 
billions of dollars of infrastructure costs?

Sadly – will it happen anyway?

For further information, contact Chris Shaw, spokesperson, NO GAMES
2010 Coalition, 604-8754111 (68373); email: csshawlab at hotmail.com

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