[Growwine] I feel good about this one

[Larry Paterson]

This feels really nice.  Congratulations to "Bulldog" Dave Menzies and the Sun for determination leading to success in this issue.

Last May I put a freedom of information request in to the LCBO, with this result

http://littlefatwino.com/lcbofoi207118.html    has the original question and the response, and my published comments at that time  (many other foi requests and their results are at http://littlefatwino.com/lcbofoimay2007.html   )

David Menzies (whom I shared all FOI information with) wrote this story last August
http://littlefatwino.com/dmgifts.html

and in Yesterday's Toronto Sun...

LCBO puts a cork in employee freebies


BY DAVID MENZIES

 

Toronto Sun, Saturday July 19, 2008

 

Let's all raise a glass of bubbly and say mazel tov! as we toast the Liquor Control Board of Ontario. 

The reason? Nearly a year after being exposed for possibly breaking the Criminal Code over crown corporation employees receiving gifts and gratuities from suppliers, the provincial liquor board has decided to do the right thing. 

In other words, the LCBO -- which operates under the oft-repeated mantra of "social responsibility" -- is putting the cork in freebies. 

The back story: Last August it was revealed in these pages several LCBO employees were receiving gifts -- ranging from magnums of wine and cases of beer to hockey tickets -- from the LCBO's various booze suppliers. The allegations, according to an anonymous LCBO whistleblower, included: 

n   No one at the LCBO is keeping track of which employees are receiving gifts, so it is unknown exactly how widespread the problem is; 


n   Some LCBO employees are apparently not declaring gifts from suppliers as taxable benefits. 

Of note, the LCBO has long had an internal policy pertaining to "gifts and gratuities" in its administration manual. The policy reads: "No LCBO employee should accept any gifts or gratuities from any supplier organization, except for promotional items of a nominal value. The Board views gifts having a value over $200 per annum from any individual or organization as the nominal threshold." 

$200 IS 'NOMINAL'? 

For starters, it seems somewhat curious that the LCBO deems a gift of $200 as being "nominal." 

As well, since the LCBO deals with hundreds of suppliers, multiple nominal gratuities can add up very quickly. 

But the issue of what makes a gift nominal and the lack of internal gift tracking is a moot point. That's because LCBO employees accepting gifts (or "product samples" as the kickbacks are known) may have been in violation of the federal Criminal Code. 

Section 121 prohibits Crown employees from demanding, accepting or offering, or agreeing to accept, directly or indirectly, a commission, reward or benefit of any kind, from a person who has dealings with the government or a government agency. 

The LCBO's spokesman, Chris Layton, responded in an e-mail: "The LCBO has clear guidelines in connection with staff accepting and reporting gifts. These guidelines have always included reference to Section 121 of the Criminal Code of Canada." 

Clear as Guiness. 

Now the LCBO is clarifying the rules for the booze industry. 

In a memo dated July 16, 2008, LCBO president and CEO Bob Peter informs LCBO vendors as well as trade/marketing associations that LCBO employees will no longer be in a position to accept any gifts. 

The manual also still makes reference to Section 121 of the Criminal Code. 

Peter points to new provincial regulations coming into effect next month that will apply to a number of agencies, boards and commissions -- including Booze Inc. 

GIFT RESTRICTIONS 

Notes Peter: "Included is a prohibition against accepting gifts from anyone who provides services to the Ontario government or seeks to provide such services, or from anyone to whom the employee provides services as part of his or her LCBO duties, if there is a conflict of interest as described in the rules. 

"To minimize conflict of interest situations, we (LCBO) are asking our trade partners not to invite LCBO employees to attend sports events, concerts, charity or other similar events, or to trade-sponsored sports events such as golf, tennis or curling. Our guidelines to LCBO employees are not to accept any such invitations." 

Still, it is perversely amusing to see Peter taking the ethical and moral high ground when it comes to putting the kibosh on gifts and gratuities from suppliers. After all, shortly after being appointed LCBO president, Bob Peter's daughter received a free year of university tuition courtesy of Spirits Canada, the national trade association that represents Canada's major distillers. 

All children of LCBO employees are eligible to apply. 

"Bob Peter is a very wealthy man and his daughter doesn't need this kind of handout," says an LCBO executive. "When we (LCBO employees) found out about this, morale here just sank." 



Changes can be made after all...



Lardy

Larry Paterson, lfw, rd, adcc
(Little Fat Wino, Roving Drunk, Alcohol Distribution Channels Critic)

http://www.littlefatwino.com/


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