Brookfield Corporation’s COO suggested that Prime Minister Mark Carney could have avoided potential conflicts by selling his assets with the global investment firm instead of placing them in a blind trust. This issue has become a focal point in Canadian politics, with MPs scrutinizing Carney’s adherence to the Conflict of Interest Act and whether his actions as prime minister could impact his personal finances.
During a two-hour testimony before the House ethics committee, Justin Beber, a senior executive at Brookfield, acknowledged that if Carney had opted to sell off his Brookfield-related assets rather than retaining them in trust, the need to manage conflicts would have been eliminated. Carney, who previously held key positions in finance, including chairing Brookfield Asset Management, had to comply with the Conflict of Interest Act, which prohibits politicians like the prime minister from owning assets that could be influenced by government decisions.
In line with the Act, Carney transferred most of his assets into a trust after becoming Liberal leader, except for certain exceptions like cash, his residences, and cottage. He also established an ethics screen overseen by the federal commissioner to prevent any potential conflicts of interest. Critics argue that Carney’s knowledge of his assets before the trust arrangement could lead to decisions benefiting his personal wealth.
The Conservatives have proposed changes to the law, suggesting that future prime ministers and their cabinet members should divest assets that pose conflict risks. This move aims to enhance public trust in elected officials and democratic institutions. Beber emphasized that Brookfield did not engage with Carney on policy matters after his resignation and stressed that the company’s investments were not influenced by the government’s budget decisions.
The ethics committee previously heard from officials overseeing Carney’s ethics screen, revealing that it was invoked 13 times, with six instances where Carney was restricted from certain decisions. The chief of staff and Privy Council Clerk affirmed that the screen was rigorously applied and reviewed by the ethics commissioner. Sabia disclosed that he divested his Brookfield shares to ensure the effective management of Carney’s ethics screen.
