Gifts to CEO broke rules, watchdog concludes

A model of the iconic Bluenose given to former Royal Canadian Mint CEO Ian Bennett at a 2014 retirement dinner hosted by longtime Mint supplier Brinks Canada violated federal conflict of interest rules, according to Ethics Commissioner Mary Dawson.

In a report released on Thursday, Dawson concluded that both the dinner and the miniature ship — whose real-life inspiration is represented on the Canadian dime — “might reasonably be seen to have been given to influence in the exercise of his official functions,” as both were accepted “in the context of an ongoing business relationship” — and specifically, one that included contracts between Brinks and the mint.

“It may well be that Mr. Bennett saw those gifts as having only to do with his retirement, even though the retirement did not take place for another four months, and that he did not make the connection with his obligations under the Act,” Dawson notes.

“However, a public office holder has a general obligation to avoid accepting gifts from stakeholders and engaging the prohibition relating to gifts.

“That obligation remains and must be taken into account.”

The complaint was referred to the commissioner by the Public Sector Integrity Commissioner last October following a “protected disclosure” received by that office, which “raised concerns” that the dinner “was intended to influence his decision making with respect to a contract the mint was in the process of negotiating with Brinks Canada.”

Dawson notes that Brinks has been providing both transportation and currency and coin processing services to the mint “for decades,” and that the two parties were in the process of negotiating a contract for “roll and wrap equipment” at the time of the dinner.

That contract was signed by both Bennett and the mint’s chief financial officer on Feb. 14, 2014, two days after the dinner. Bennett retired in June. Dawson points out that the acceptability test doesn’t depend on either his perceptions, or those of the gift giver, “but whether, in the circumstances surrounding the gift, it might reasonably be seen to have been given to influence a public office holder.”

Under the Conflict of Interest Act, the commissioner has no power to impose penalties for breaches of the rules, but she is obliged to make the findings of her investigation public.