This is an archive of news stories and research from the National Union of Public and General Employees. Please see our new site - https://nupge.ca - for the most current information.
That lack of transparency and accountability that comes with privatization means problems with sleaze are inevitable.
Ottawa (25 June 2015) — Corporations running privatized services know what will happen if they break the law. They’ll get more juicy contracts to run public services.
Recently the Toronto Star reported that one-third of the temporary employment agencies hired by the provincial government were found to have violated the Employment Standards Act. And that was just based on 2012 data. But in spite of that, those companies received contracts worth almost $3 million.
Not an isolated example
Several former senior executives with SNC Lavalin, including a former CEO, are facing fraud charges in connection with a P3 privatization scheme in Quebec, but the company is still getting contracts for other P3 privatization schemes.
Serco is also under investigation by the Serious Fraud Squad in Britain for overcharging the government for monitoring. This charge came shortly after an audit revealed Serco was over-charging the British health care system to a tune of $128.3 million.
But since those scandals broke, the Ontario Liberals have given Serco a contract for testing prospective life insurance agents, while the federal Conservatives have renewed Serco’s contract to run a military base.
Privatization sleaze relies on secrecy
The root of the problem is the secrecy that comes with privatization. When public services are publicly provided, people have a right to information about how they are run. There are independent agencies with the power to obtain this information and investigate complaints.
That access changes when services are privatized. The public is paying the bill, but key information about how services are run is kept secret on the grounds of “commercial confidentiality.” Even the Auditor General is unable to get unrestricted access to information about how public funds are spent.
That lack of transparency and accountability that comes with privatization means problems with sleaze are inevitable.
More infomration:
Vote for the Privatization Scam of the Year Award
NUPGE
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 360,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE