Privy Council Clerk Michael Sabia, one of the individuals responsible for overseeing Prime Minister Mark Carney’s ethical conduct to prevent any potential conflicts of interest, stated that the prime minister’s ethics screen is activated at the slightest indication of necessity. Sabia, the country’s highest-ranking civil servant, provided testimony in Ottawa on Wednesday in response to ongoing scrutiny by Conservative MPs on the House ethics committee regarding Carney’s policy decisions and potential financial gains.
Earlier this year, an ethics screen was implemented following Carney’s full disclosure of his assets to the federal ethics commissioner, who enforces the Conflict of Interest Act for public office holders. Upon winning the Liberal leadership, Carney transferred the majority of his assets, except for some cash, his primary residence, and cottage, into a blind trust.
In a blind trust arrangement, the trustee assumes legal ownership of the assets and has the authority to manage them independently, without consulting Carney. Conversely, Carney is prohibited from knowing the specific assets held within the trust. The purpose of the ethics screen is to prevent Carney from participating in decisions that could potentially benefit the assets as they existed prior to being placed in the blind trust.
Carney’s ethics screen encompasses over 100 companies in which he previously had a financial stake. This implies that he is restricted from engaging in any decision-making processes that could advance the interests of these companies while serving as prime minister.
Sabia disclosed that the ethics screen has been invoked on 13 occasions thus far, with six instances where Carney was barred from participating in related decisions. Each case was thoroughly reviewed with the ethics commissioner to ensure compliance. Sabia noted that in instances where the screen was not applicable, it was typically due to the decisions having no direct connection to the disclosed companies or involving general tax measures.
The Conflict of Interest Act outlines regulations, guidelines, and timelines to prevent office holders from making decisions that could result in personal gain for themselves or their families. Carney’s background includes serving as board chair of Brookfield Asset Management and holding key positions in the financial sector before entering politics.
According to the law, the prime minister, cabinet ministers, and parliamentary secretaries are prohibited from owning “controlled assets” that could be influenced by government actions, such as stocks, bonds, and certain types of mutual funds. These officials are required to divest publicly traded assets through a legitimate transaction or place them in a blind trust to comply with regulations.
Opposition MPs have raised concerns about the adequacy of existing laws in addressing potential conflicts of interest. Conservative MP John Brassard, chair of the ethics committee, questioned Sabia on the necessity of completely divesting an office holder’s assets, rather than utilizing a blind trust, to eliminate any perceived conflicts of interest.
Sabia defended the current stringent system but suggested that updates to the regulations are within the purview of parliamentarians. He also cautioned against overly restrictive measures that could hinder talented individuals from transitioning from the private sector to public service.
The oversight of Carney’s ethics screen is managed by Sabia and Marc-André Blanchard, Carney’s chief of staff. The screen explicitly covers any official matters or decision-making processes involving Brookfield and Stripe, a digital payment company where Carney previously held a board position. Carney’s public filing revealed his holdings in both companies at the time of divestment, without specifying their value. However, according to Brookfield Asset Management’s 10-K report filed with the U.S. Securities and Exchange Commission, Carney possessed approximately $6.8 million US worth of unexercised stock options as of December 31, with the value subject to fluctuations.