Wednesday, December 28, 2005

RCMP launches probe into Liberal insider trading scandal


Police have launched a criminal probe in the midst of Canada's federal election campaign into whether tax policy information was improperly leaked to the financial community, according to a letter made public on Wednesday.

The Royal Canadian Mounted Police confirmed the investigation in a letter to the opposition New Democratic Party, which had asked the Mounties to review the actions of Finance Minister Ralph Goodale's office for a potential criminal probe.

"Based on the information obtained during the review, the RCMP will be commencing a criminal investigation," RCMP Commissioner Giuliano Zaccardelli wrote in the two paragraph letter that gave no additional details or name the specific target of the investigation.

The Mounties are looking into allegations that information on the government's tax policy for income trusts had been leaked, leading to a sharp rise in the price of trust units ahead of the official announcement.
I thought this was just going to fade away, but kudos to the NDP for pursuing it. They have demanded that Ralph Goodale step down as finance minister while the investigation is made, and if he has any integrity, he will. Can you feel the doubt in those words?

Sure enough, here's Goodale's response:

Speaking with reporters at his Regina constituency office, Goodale said he would not step down because that would "lend credence" to the allegations that he thinks are baseless.

"It's very clear from the comments of the RCMP that they have no information, no evidence, no indication of any wrongdoing on my part and no direct allegation against me personally," Goodale said.

"I'm very anxious to make sure that my reputation for integrity is absolutely vindicated, because that is a very crucial part of who I am and what I stand for - that's been my modus operandi for over 30 years."
Angry In The Great White North thinks that Goodale must resign, as there is no other option, but it seems the Liberals will try to brazen this out. Hopefully pressure will be brought to bear from the press. Angry also has information about a possible Ontario Securities Commission investigation.

M.K. Braaten thinks that this is a real blow to the Liberals, as the RCMP only begins investigations

if there is a high probability of guilt as investigating insider trading is like finding a needle in a hay stack. The Liberal party may have just met their match.
I cautiously (and hopefully) agree.

Previous articles on: Liberal insider trading scandal
Further evidence of Liberal insider trading scandal?
The corrupt Liberal’s insider trading scandal


At 1:46 AM, Anonymous Anonymous said...

Very interesting blog. A good read....


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