Your CPP Is Funding War Crimes
How would you feel if someone told you that every one of your paycheques was being used to support war crimes and keep the companies accused of these atrocities rolling in lucrative business? And how would you feel if you lived off the avails of torture and bloodshed through the Canada Pension Plan (CPP), upon your long-awaited retirement after paying into it? This appears to be our dirty little secret, that Canadians enjoy prosperity at the unethical demise of others.
In a recent interview with Harry Fear we touched on CPP investments and how they contribute to the Israel-Palestine conflict; through complicity in drone warfare, an illegal wall, the death of children and suppression of human rights.
While this was enough to make anyone angry, it wasn’t until I received mortified responses from baby boomers that I investigated further. The messages from this demographic were compelling and show that we’re ready to take action to restore our reputation and the shame of these transgressions will not be tolerated.
It’s claimed the amounts we contribute to CPP are not enough to cover the population’s living expenses and as a result, the plan turns to the stock market in an effort to generate a sustainable future. We’ve done well enough that organizations are pushing for expansion, to allow Canadian retirees a degree of pride that sustains them above the poverty line. With the amount of privatization, downloading and user fees they will surely need it; but the Harper government says we can’t afford to treat our own a little better.
It may indeed be a matter of priorities, but not as we are led to believe from a lack of funding. Instead it’s the difference between humanitarian care for Canadians, versus the pursuit of power in a vicious, military-industrial complex. At the end of the day CPP relief is not available to seniors because the government wants a greater share to invest in pet projects of warfare.
Our domestic (PDF) and foreign portfolios (PDF) are available on the CPP Investment Board website. Scanning through the foreign list we come across L-3 Communications Holdings, where we invested $10 million in solidarity with a company held responsible for the Abu Ghraib prison scandal.
Everyone remembers the horrifically iconic photographs that circulated media from the darkest corners of Iraq. What Canadians may not have realized is that our holding, L-3 Communications, was the first private contractor to settle with victims for $5.8 million to account for their role in the torture and inhumanity.
Reprieve is a UK charity focused on the human rights of prisoners. They cite L-3 Communications as not just a violator in the Abu Ghraib case, but also as a”key drone component manufacturer” for the American-made predator. This is the weaponized, remote control aircraft responsible for increasing attacks on civilians in Pakistan and Yemen.
According to international law it’s illegal to use armed drones in non-war zones, but no one from the company will acknowledge these concerns. In the meantime, as many as 885 innocents were killed, accounting for 176 children in Pakistan alone. That means every working person in Canada paid about $5 in CPP contributions to make it happen and we continue to perpetuate violence in this corner of the world.
But our unethical investments don’t end there. We support Elbit Systems Ltd., on the forefront of miniature drone cars that also kill by remote control. They can take action of their own accord, without the need for human intervention to shoot whatever these Guardium models deem a threat in their computerized judgement. Automatic killing machines pose a challenge to human rights and yet the Canada Pension Plan is behind pushing them to market.
Canadians hold another $16 million in CAE, as a partner to Elbit for the purpose of developing Integrated Soldier Systems. Most information has been removed from public view by the Department of National Defence since the project was approved for a tendering process by the Canadian government. Earlier research (PDF) indicates the creation of veritable robo-cops like what we’ve seen in the movies, complimented by eyepieces with pop-up TV screens to feed intel to the troops. This is the military meets Xbox and CPP facilitates this development too.
With the presence of hacktivist groups like Anonymous watching over the battlefield and increased warnings from CSIS regarding digital espionage as the biggest threat to our security, a new industry of war games is birthed against conventional wisdom that places profit front of mind with little regard for human beings.
In fact, Chinese-based servers are responsible for hacking into Canada’s defence research, treasury and finance departments in an unprecedented breach of our most classified information. Ironically, the Integrated Soldier System was housed in a compromised department and it may still come to pass that the government looks to Anonymous for protection at the rate we’re going.
By no means are these the only examples of our financial stake in conflict, but they do represent some of the most heinous crimes and self-inflicted danger that our savings are used to promote. With every paycheque we’re breaking human rights around the world. CPP has been manipulated to terrorize Palestinian children by the hundreds of thousands. Hundreds more are killed across the Middle East and a majority of countries where drones are hovering equipped with missiles. The ones that aren’t weaponized perform surveillance to challenge North American civil liberties and we’re so heavily invested in warfare that if peace occurred, our retirement fund would become bankrupt.
It’s important to understand that CPP is not a tax and therefore doesn’t qualify as government revenue (PDF) to do with as it pleases. Despite this, the investment board is a crown corporation that is directly responsible to the federal government and immediately after Prime Minister Stephen Harper was elected in 2006, they updated their policies to encourage aggressive tactics.
Dramatic changes followed quickly. In 2007, new legislation altered CPP practices through measures contained in Bill C-36. By April 2007, all CCP assets were transferred to control of the investment board (PDF, see pg. 18, New Investment Policy) and in 2012 they changed from passive management to active management techniques. Aggressive trading requires a team of involved experts and staff at the CPP ballooned from 70 to 811 in the same short period. They’ve opened offices in Hong Kong and London, took on riskier markets, decreased Canadian equities in favour of foreign projects, hedged currency and shifted public holdings to private interests. Our hard-working dollars used to find their place in safer government bonds, but the lion’s share was migrated to a war-centric market.
The investment board explains they’re unique from other retirement funds and they’re padded to take on the risk. They’re only expected to share 25 per cent of profits to provide for CPP benefits and the working class pays the rest. With $170 billion in assets now and 18 million people to cover, the plan can already sustain itself for another 75 years. (PDF, see pgs. 1-21, CCPIB Annual Report 2012).
Since Conservative rule and the CPP makeover, we’ve borne the brunt of losses great as 18.6 per cent. We must divest from the war machine and put our money where it doesn’t kill, if not for humanitarian grounds then because financially it doesn’t make sense. As international diplomats have said, “Canada is not the good guys anymore — we all have a bit of blood on our hands.”
Part II: Where Your CPP Money Really Goes
In part one of this two-part series, we examined the Canada Pension Plan’s (CPP) investment in drones, computerized soldiers, land occupation and an infamous prison scandal. Part two is dedicated to the many potential conflicts of interest — yours, mine, the executives’ and the PMO’s. Some might be moral. Some might be something more.
If you look at the CPP Investment Board of Directors, you will find that all but one executive was appointed since the determined change in strategy under the Harper government. These board members are skilled leaders from different industries, but no matter their background, most of them share something in common.
Ian Bourne is Chief Executive Officer of SNC-Lavalin. CPP invested $21 million in SNC-Lavalin in spite of the company being plagued by ties to the Gadhafi regime and fraud charges that are still winding through the courts.
Bourne is also the Director of Canadian Oil Sands Limited, which has a large stake in the Syncrude project — the project at the heart of a lawsuit involving Greenpeace and the death of wildlife. Syncrude was convicted and fined more than half a million dollars. Our CPP investments in this company total $80 million.
David Suzuki continues to educate about the misnomers of “ethical oil” and points to other companies in business with the Alberta oil sands. Exxon Mobil has a history of major oil spills. CPP gave them $553 million. Exxon funded a lobby against the Kyoto Protocol, and Canada eventually cancelled our commitment to the international community.
BP is responsible for the tragic Gulf Coast oil spill that may cost more than $7 billion in legal settlements to cover the damage. And if we look in our CPP foreign column, we’ll find $347 million invested in BP.
Nexen is another curious entry with $62 million in CPP investments. It’s unclear what will happen to this particular investment, since Harper made waves by allowing the company to be purchased by China. The deal was embroiled in controversy regarding national security. CSIS raised concerns about compromising Canadian intelligence, while the United States rebuked the purchaser’s energy partnership with Iran. Still, it went unreported that the Securities and Exchange Commission (SEC) had to freeze assets to investigate cases of Nexen insider trading that resulted from our sell-off.
CPP also has $218 million invested in TransCanada Corp. They’re the ones fighting for the Keystone XL pipeline that was met with public backlash across the continent. We have another $201 million socked away in Enbridge, which has challenged Native land rights in preparation for the Northern Gateway pipeline.
Moving along in our Board of Directors, we arrive at Pierre Choquette was the CEO of Methanex. Douglas W. Mahaffy is the current director of Methanex. This company is the world’s largest producer of methanol for petrochemical use. It received $38 million from CPP. Choquette further served as a director at TELUS, which received $116 million from CPP. TELUS employs two former consultants linked to the E-Health scandal that rocked Ontario.
Heather Monroe-Blum sits on the Board of Directors for the Royal Bank of Canada. RBC received $707 million from CPP and is the Plan’s largest domestic holding. That’s putting a lot of our eggs in one basket, which seems unwise, especially when that one company has been implicated in the LIBOR scandal .
Karen Sheriff heads Bell Aliant as the CEO and president. CPP invested $21 million with that company. Joe Mark Zurel is listed as the Director of Major Drilling Group, which also received $12 million from CPP. Nancy Hopkins is the Director of Cameco Corporation. CPP invested $43 million there. Robert Brooks was the Vice Chair of Scotiabank. CPP invested $537 million in the company. Brooks also headed Dundee Wealth and CPP invested $20 million with Dundee’s parent company.
In addition to these revelations, the CPP is a substantial partner of Onex. The Onex Corporation purchased Raytheon’s air division in 2006. Raytheon is a defence contractor. It’s the world’s largest producer of guided missiles and nuclear warheads. These weapons are involved in conflicts from Iraq to Afghanistan, from Libya to Syria and everywhere the U.S. military sets foot. The acquisition of Raytheon’s flight technology created the Hawker Beechcraft company, putting Onex in the business of peddling combat planes to governments.
The managing director of Onex was Nigel Wright. He took leave from the position to become our Prime Minister’s chief of staff, exactly two months after CPP entered a multi-billion dollar partnership with his company. While the Conservatives called this “great news for Canada’s economic policy,” the NDP’s Charlie Angus cautioned Wright to “follow the rules” regarding conflict interest.
Wright was recently cleared in an ethics probe about the same issue with Barrick Gold (in which CPP holds a $330 million stake). The founding family of Barrick sat on the Onex board of directors and there were questions about personal lobbying that could have led to the PMO.
Despite the investigation’s positive outcome for Wright, MP Angus took issue with the commissioner’s process. When additional conflict issues were raised by OMERS, they were dismissed as mistakes in a hasty response from the Prime Minister on Wright’s behalf.
As we’ve seen, Harper’s chief of staff is also connected to Lockheed Martin (incidentally CPP holds $78 million in that company as well). Nigel Wright’s duties as director of Onex included oversight of Hawker Beechcraft, the partner to Lockheed Martin, which produced the fighter jets at the centre of F-35 debacle. This places the CPP in a bizarre love triangle with Onex and Lockheed, well beyond anything we purchased in stock.
Hawker Beechcraft’s Onex deals with Lockheed include supplying the US Air Force and Homeland Security with cannon equipped fighter jets. They produce a handful of warplanes with rocket capability and their accounts include the Canadian, American, Greek, Israeli, Iraqi, Moroccan and Mexican military. One of the shared executives (PDF) managed the Lockheed F-35 file before coming to head government relations at Onex’s Hawker Beechcraft.
So that introduces our business partner.
In July 2010, CPP and Onex purchased Tomkins PLC together, for $4.5 billion (£2.9 billion) with our retirement dollars. We are equally listed owners and our acquisition provides hydraulics to the oil, gas and mining industries. Tomkins was also the previous owner of Smith and Wesson guns before we bought them out.
In November 2012 CPP deepened its relationship with Onex to acquire Tomkins Air Distribution for an additional $1.1 billion (PDF); meaning when Nigel Wright leaves his position with the Prime Minister’s Office, he’ll presumably return to managing our CPP partnership from the private industry end.
With the 2012 expansion, Onex and the CPP came to own all subsidiaries under the parent heading. One of those spinoffs is Titus, a company that provides data security to the military in Canada, the U.S., Australia, Belgium and Denmark. Titus provides services to the whole of government, aerospace, police and financial industries.
The moral of the story is we’ve got to come clean about the unethical use of our retirement funds. There isn’t enough money to expand CPP because the surplus was earmarked to boost the military-industrial complex. When our hard-earned money isn’t being used to cause bloodshed, it’s going to companies affiliated with the CPP’s own CEOs and the Alberta oil sands.