Waterloo Region Record

Heated debate

Bread scandal puts focus on immunity program

- DAN HEALING

The national bread price-fixing scandal has sparked heated debate over the Competitio­n Bureau’s immunity granting program, with a law enforcemen­t expert defending the practice and a government accountabi­lity critic arguing it just lets offenders get away with crimes.

Bakery wholesaler George Weston Ltd. and subsidiary grocer Loblaw Companies Ltd. were granted immunity from prosecutio­n in return for co-operation in the price-fixing probe under a long-standing bureau program that grants freedom from sentencing to the first party in a cartel who volunteers to co-operate.

According to court documents released Wednesday, the bureau alleges that senior officers at George Weston and rival Canada Bread Co. Ltd. communicat­ed to raise prices in lockstep, then met with five national bread retailers who agreed to implement the higher prices.

“If you have an effective whistleblo­wer program and you have the resources to be doing effective best-practice inspection­s and audits, then the immunity program just amounts to letting one of the violators off the hook. And

that’s a bad idea,” said Duff Conacher, co-founder of Democracy Watch.

Conacher said the Competitio­n Bureau’s immunity program offers an offending company an escape route if it becomes aware that its violations are about to be exposed — for example, if a disgruntle­d employee threatens to do just that.

He said the bureau would be better off if it provided sufficient compensati­on and better protection for whistleblo­wers to offset their significan­t personal risk of losing their jobs or being taken to court.

The immunity program was employed in 2007 when Cadbury Adams Canada Inc. agreed to provided details of a chocolate price-fixing conspiracy in return for avoiding prosecutio­n. The investigat­ion resulted in criminal charges against three companies and three individual­s, and one of the companies, Hershey Canada Inc., subsequent­ly pleaded guilty and was fined $4 million in 2013.

“The bureau’s immunity and leniency programs offer powerful incentives for organizati­ons and individual­s to come forward and co-operate with the bureau’s investigat­ions, and have proven to be among our best weapons to combat criminal cartels under the Competitio­n Act,” the bureau stated in 2015 as it announced charges had been stayed against the rest of the defendants.

Investigat­or Sandy Boucher of accounting firm Grant Thornton said being able to offer immunity is a vital tool in crime-fighting. “If you are trying to investigat­e and prosecute people involved in conspiracy, there really isn’t a better way to do it than to get a co-operating insider.”

 ?? THE CANADIAN PRESS PHOTO ?? George Weston Ltd. and its subsidiary Loblaw Companies Ltd. were granted immunity from prosecutio­n in return for their co-operation in the bread price-fixing investigat­ion.
THE CANADIAN PRESS PHOTO George Weston Ltd. and its subsidiary Loblaw Companies Ltd. were granted immunity from prosecutio­n in return for their co-operation in the bread price-fixing investigat­ion.
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