IT WASN'T A FREE LUNCH!

-------- Your tax dollars at work ---------

QUESTION - Should core funding contributions by municipalities be used to buy dinner at political rallies?

Amongst the documents produced by SWSDA showing the travel expense claims of SWSDA's CEO is a handwritten note claiming $250 for eight dinner tickets for dinner with the Premier. Who in the world approved this expense and/or attendance at this event?

Did the Board of Directors know about this, or did Mr. Anderson do this on his own?Were any of Board members beneficiaries of the eight dinner tickets reportedly purchased by Mr. Anderson and claimed as a travel expense? If they were, who were they. If they were not, who were the eight people who had dinner with the Premier at taxpayers expense?

This is one of those expenses where one has to wonder if this $250 expense produced any development benefits for our communities. If it did, what were those benefits. Other logical questions include the following.

a) Should SWSDA funds be used to attend political events?
b) If the answer is yes... which political events should be attended?
c) Should political events held by the government be the only ones attended or should SWSDA pay to attend events held by all parties?
d) Who should decide which events to attend and who should attend?

Of course, I am assuming this dinner with the Premier was a political fund-raising event. Is it possible that it was a development meeting that ran over and dinner was brought in? Naw.....

Unfortunately there is no official receipt, so it is difficult to tell from the handwritten note what the money really was for or even where the event took place.

Any Directors interested .... curious.... determined to get this kind of financial contribution for the political party they support?

Makes you wonder what people are thinking ... doesn't it?

SWSDA Board Members Personally Liable

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This is a public service blog to ensure Directors of SWSDA know their legal obligations.

The taxman giveth and the taxman can taketh away....

..... A few years ago Revenue Canada did an audit of SWSDA's HST accounts and discovered the taxman had been short-changed between April 1, 2003 and November 30, 2004 by $156,889. SWSDA has now repaid that amount to the taxman but it appears SWSDA Board members may not have known that until it was paid off, they were each personally liable for this debt to the federal coffers!

I didn't know! Not a defence that'll work if you never tried to find out!

Under other federal and provincial statutes, directors also face personal liability for environmental offences, wages and source deductions from payrolls, among other things.

Why Directors are made Liable...

The theory behind the imposition of directors’ personal liability is that the risk of being found liable will make directors more attentive to their legal obligations in managing the corporation. It is felt directors will be prompted to become more active in monitoring corporate compliance with the statutory requirements. Moreover, where a corporation has violated a statutory requirement, the liability of directors provides a means of punishing that violation.

There are basically three ways in which statutes impose liability on directors. In one, liability is imposed whether or not the director intended to commit the offence or even knew that the offence had been committed. In another, liability is imposed on directors unless they are diligent; that is, a "due diligence" defence allows directors to avoid liability where they have taken appropriate steps and instituted procedures. In the third way, liability is imposed on directors who "authorized, permitted or acquiesced in the commission of the offence by the corporation."

For more information about how Directors can protect themselves from personal liability see...
http://www.fmc-law.com/upload/en/publications/2009/568_FMC_CCCA_Conference_Article_v2.pdf

Clear as ... Exclusive Austrian Crystal...

-------- Your tax dollars at work -------


You've got great taste!

The House of Dior and Swarovski Crystal are leading creators of fine gift, personal and household items in Europe ... For more than a decade they have worked together to introduce special lines of unique products for an upscale global market... and now you are the proud owners of one of those crystal products!

On June 13, 2005 taxpayers in the communities in Shelburne and Yarmouth Counties and the Municipality of Clare contributed to Swarovski's cash flow, with the purchase of an unidentified item from Swarovski Crystal at the Duty Free Shop at the International Airport in Vienna. It is included in the expense claim receipts of SWSDA's CEO without an explanation as to who authorized the purchase, what was purchased, why it was purchased or what was done with the item or items purchased.

Who knows..... at a cost of €227 (+/- $350.00 Cdn.) this purchase from a leading crystal manufacturer in Austria may be justified as a legitimate travel expense for Southwest Nova's economic development agency SWSDA. Wouldn't that be a proverbial "kick in the pants." If it was, taxpayers likely would be interested in knowing how this purchase furthered economic development in one or more of our nine communities.

Unfortunately, since none of Mr. Anderson's travel expense claims identify the purpose of the expenditure, the public may never know. Board members responsible for supervising the activities of SWSDA staff might consider asking for an explanation and making that explanation public.

Want to see where your economic development tax dollars are going? Visit SWAROVSKI CRYSTAL'S web site for more information about their products and a description of their exclusive product lines at www.swarovski.com/ .... If you want more information ask your Warden, Mayor, Councillor or whoever sits on the SWSDA Board from your community about the use of your development tax dollars in this fashion.

BTW... this is just the tip of the iceberg! More coming.....