Privy Council Clerk Michael Sabia, one of the individuals responsible for overseeing Prime Minister Mark Carney’s ethical conduct to prevent any personal gain from his decisions while in office, emphasized that the prime minister’s ethics screen is activated proactively, even at the slightest potential need. Testifying in Ottawa before Conservative MPs on the House ethics committee, Sabia, the country’s top bureaucrat, addressed ongoing concerns about whether Carney has leveraged his policy choices for personal benefit.
Earlier this year, an ethics screen was implemented following Carney’s full disclosure of assets to the federal ethics commissioner, who enforces the Conflict of Interest Act for public office holders. Subsequently, Carney transferred most of his assets, excluding select holdings like cash, his primary residence, and a cottage, into a blind trust upon assuming the Liberal leadership earlier this year.
A blind trust arrangement designates the trustee as the legal asset owner with the authority to manage transactions independently. Carney is prohibited from influencing these decisions, ensuring that he remains unaware of the trust’s contents. The ethics screen focuses on safeguarding against decisions that could favor Carney’s pre-blind trust assets.
With the ethics screen encompassing over 100 entities in which Carney held interests, any involvement in decisions that could benefit these companies is restricted during his tenure as prime minister. Sabia revealed that the screen has been invoked in 13 instances to date, with six cases resulting in Carney being prohibited from participating in related decisions after thorough review with the ethics commissioner.
Sabia noted that specific cases triggering the ethics screen would be shared with the committee, excluding ongoing instances. The Conflict of Interest Act mandates guidelines and timelines to prevent officials from engaging in actions that could benefit themselves or their families, underscoring the importance of ethical governance.
Carney’s extensive financial background, including leadership roles at Brookfield Asset Management, the Bank of Canada, and the Bank of England, has raised questions about the adequacy of regulations governing office holders’ financial assets. Opposition MPs have questioned whether stricter measures, such as complete divestment rather than blind trusts, are necessary to eliminate any perception of conflicts of interest.
While defending the current stringent system, Sabia acknowledged the possibility of updating regulations, emphasizing the need to strike a balance to avoid deterring capable individuals from transitioning from the private sector to public service. The ethics screen oversight, managed by Sabia and Marc-André Blanchard, Carney’s chief of staff, specifically addresses official matters involving Brookfield and Stripe, where Carney previously held board positions.
Public disclosures indicate Carney’s holdings in these firms, with unspecified values, at the time of divestment. Notably, Brookfield Asset Management’s financial reports revealed Carney’s possession of $6.8 million US in unexercised stock options as of December 31, with fluctuating values since then.
