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July 13, 2010 - No. 131
Corruption and Decay within
Canada's Ruling Elite
- K.C. Adams -
• Corruption
and Decay within Canada's Ruling Elite - K.C. Adams
• Brutality of Canadian Mining
Companies in Guatemala
Corruption and Decay within
Canada's Ruling Elite
- K.C. Adams -
Frank and Belinda Stronach's attempt to extort over one
billion dollars from publicly held Magna International Inc. is
testimony to the depth that owners of capital, their political allies
and state institutions have sunk.
The interconnections in this case reveal an economic and
political system in decay, rife with corruption and overdue for new
arrangements. The über-rich,
their
monopolies,
political
representatives and state institutions such as commercial law and the
Ontario Securities Commission are linked together with the
financial institutions holding the people's pension and other funds.
They form part of a monopoly capitalist state within an imperialist
system of states of the international financial oligarchy. The
international connections are evident in the members of the Magna Board
of Directors and Magna International's global
operations. The Stronachs make no apologies for opposing the building
of a self-reliant diverse Canadian economy and using Canadian
added-value to strengthen the socialized economy and serve the general
interests of society. They see themselves as members of the
international financial oligarchy taking money
out of the Canadian economy and using it for personal luxury,
horseracing or in speculation for big scores across the globe.
Frank and Belinda Stronach represent both a natural and
hereditary aristocracy that is striving to reintroduce all the rights
and privileges of medieval rule. The financial oligarchy reject all
modern definitions, in particular the rights of the people and their
empowerment to decide all economic and political affairs
including the use of social property, such as Magna International Inc.
in Canada, and distribution of social product.
The Stronach family's first claim on social product
produced by Canadian workers reflects the root cause of the country's
economic and political crises. The seizure of wealth by the über-rich results in lower
wages, benefits and pensions for workers, and a
lack of money for social programs, public services,
infrastructure and economic renewal, especially in manufacturing. The
removal of value from the socialized economy by the financial oligarchy
is a basic factor of the continuing economic crises.
This extortion of money from social property, as seen in
the Stronach case, is monopoly nation-wrecking. The myth of the great
entrepreneur has long been smashed. The modern owner of monopoly
capital does not reinvest in socialized property but removes money from
it in search of big scores globally, undermining
the economy and causing crisis after crisis. The über-rich
parasites block economic, political and social renewal and the advance
of society.
The direct involvement in the Stronach extortion attempt
both for and in opposition for self-serving reasons are former Premier
of Ontario Mike Harris, the Canada Pension Plan, the Ontario Teachers'
Pension Plan, the Caisse de dépôt et placement du
Québec and other pension funds, the Ontario Securities
Commission
and several other members and institutions of the monopoly capitalist
state. This obscene attempt at a billion dollar big score at the
expense of the Canadian economy together with the conciliatory liberal
opposition, which seeks only to limit the size of the extortion,
underscore the necessity for the working class to
organize itself politically as a class of, for and by itself in
resolute opposition to the wrecking and rule of monopoly capital. The
working class must organize to bring into being political and economic
institutions that conform to modern definitions of democracy, people's
empowerment, and integrity and social consciousness
in economic and political affairs.
 It is unacceptable that
Canada's socialized economy and
political and other institutions of the state machine are considered
the personal preserve of a privileged aristocracy that acts with
impunity. On the contrary, this is the era of political and economic
empowerment of the people. The people must become the
decision-makers in all political, economic and social affairs within a
People's Canada.
Politics and economics of our modern world of socialized
production must conform to the rights of the actual producers of social
product and providers of services. The actual producers and their
allies must organize and fight for and attain their empowerment to
control and decide the direction of Canada's economic
and political affairs and put an end to this corruption that ruins and
wrecks the social, economic and political affairs of the nation. Using
public institutions such as large economic enterprises for individual
enrichment and aristocratic privilege must be banned and denounced as
public corruption of the worst kind and
dealt with in the severest manner.
The first claim on social product from the socialized
economy must be the actual producers and the governments of various
levels to serve the general interests of society. The claims of the
natural and hereditary aristocracy, such as Frank Stronach and his
inheritor Belinda Stronach, are a blight on society and
a block to solving the country's social, economic and political
problems. These offspring of monopoly capitalism are living a lie and
myth of early capitalism. Frank Stronach gave rise to nothing original
or new. He served the interests of the global auto monopolies for
non-union production of auto parts separate
from the auto monopolies only in corporate name. He was used as a
willing ally of the auto monopolies and their state subsidies to
consolidate capital in the hands of a few and undermine and weaken the
working class movement, especially the Canadian Auto Workers so that
industrial workers would not have their
own outlook and organizational form that they control separate from the
monopolies and their state machine.
Magna International represented during its formative
period the beginning of the concerted attack on the post-WWII social
contract between capital and labour. Without the active connivance of
the auto monopolies and state to prepare conditions to smash
unilaterally the social contract, including Canadian- standard
wages, benefits and pensions, Magna would never have gotten off the
ground. It would never have received any auto parts contracts. Magna's
rise to prominence mirrored a similar process in the United States and
Japan, where so-called separate auto parts manufacturers became an
important weapon to smash the
autoworkers' trade union movement and periodically to restructure auto
production through bankruptcy protection and state subsidies.
Magna International is a creation of neoliberal global
capitalism and the state machine. It is no coincidence that the Magna
director leading Stronach's billion dollar extortion bid is none other
than former Ontario Premier Mike Harris, who took up the anti-social
mantle from NDP Premier Bob Rae, and made
it official policy in Canada's most industrialized and populated
province with his "commonsense revolution" to attack the working class
and most vulnerable.
Workers should denounce the Stronach extortion bid with
contempt. It should serve as an impetus to organizing the working class
into a powerful Workers' Opposition. Only the working class organized
of, for and by itself together with its allies gathered in a united
front can put an end to this anti-social aristocratic
privilege of the owners of capital. It is up to the Workers' Opposition
to fight for democratic renewal and establish a pro- social
alternative!
Stronach Family Tries for Big Score
Frank and Belinda Stronach own what is called the
Stronach Trust and its Magna Class B shares. Even though Magna
International is owned through stock equity of Class A common shares,
control of the enterprise is exercised through the Stronach Trust and
its Class B voting shares. The Stronach Trust exercises absolute
control of Magna, and its annual added-value produced by Magna workers,
through ownership of 726,829 Class B shares with 300 votes each. Class
A shares have only one vote each giving Stronach's Class B shares
absolute control and power. Class
A and B shares have approximately the same market value. The present
market value of one Class A share is $71. Stronach's extortion bid
values each one of his Class B shares at $1,187.
In exchange for eliminating his 726,829 Class B shares,
Stronach wants approximately 12.5 Class A shares for each of his Class
B shares or nine million Class A shares with one vote each, $300
million US in cash, a guarantee of $120 million in consulting fees, and
control of a joint Magna/Stronach Trust E-Car
venture. In the proposed E-Car venture, the mass media report "Magna
would invest $220 million while a Stronach group would contribute $80
million. But Stronach would indirectly control the venture with three
of five board directors. ‘This would be like a mini-Magna where
Stronach has minimal equity interest
but majority control'," an investment commentator remarked.
 Stronach's Class B Magna
shares currently represent less
than 1 per cent of the total Class A and B share equity. The Stronach
family says that it will give up absolute control of the Magna
enterprise by exchanging the Class B shares for Class A shares, cash
and other considerations worth over $1 billion. The
Stronach extortion represents both a claim on new Magna revenue and a
transfer of existing value from others such as the Canada Pension Plan.
The creation of 9 million new Class A shares for
Stronach also significantly dilutes the value of the 112 million
outstanding Class A Magna shares. The combined new shares and $300 cash
payment represent about 10 per cent of the company's market value.
The Stronachs argue that their complete dictatorship
over the enterprise allows them to divert millions of dollars of added-
value into their pockets annually, not as dividend on ownership equity,
which they receive, but under the hoax of being consultants. Stronach's
annual "consulting" contracts from Magna
are equivalent to more than three per cent of the company's claim on
revenue. The millions of dollars in consultant and other fees paid to
the Stronachs are in addition to any dividend payments from Class A and
B stock ownership, salaries as executives and rewards such as share
options and expenses. For example,
three years ago, Magna sold a stake in Magna to Russian financial
oligarch Oleg Deripaska. According to the mass media, the deal caused a
flap mainly because it came with numerous extra dividends, fees and
payments for the Stronachs and certain members of executive management.
The Stronachs argue they will be relinquishing an
element of their class privilege and monopoly right and must be richly
rewarded for doing so.
This situation of a dual share structure is common among
"family-owned" enterprises that long ago issued share equity in the
family business. To give up the dual share structure the families try
to extort money from the common shareholders but none comes close to
the Stronach attempt.
The Stronach's are demanding $120 million in consulting
fees over the next four years. Stronach regularly extorts "consulting
fees" from Magna revenue on top of his dividend payments and executive
salary. From 2002 to date, Magna has given him $213.7-million in
consulting fees, according to an analysis
by proxy solicitation firm Glass Lewis. Those "consulting" payments to
Frank Stronach date back decades and are said to average over $20
million per year.
The family trust has controlled Magna for 32 years with
Class B shares considered the equivalent of about two thirds of all the
votes while representing less than one per cent of the company's
equity. The present scam when completed would still leave the Stronach
Trust as Magna's biggest single shareholder
with 7.4 per cent of the total. Frank and Belinda Stronach already own
millions of Class A shares.
The total including the consulting fees amounts to about
$1 billion for the Stronach Trust in exchange for the Class B shares
and their voting privilege but that is not all. The Stronach's also
want Magna to form a new E-Car joint venture between the Stronach Trust
and Magna, in which the Stronachs would be
given about 27 per cent ownership but would control three out of the
five board of directors through a scheme that bears some similarities
to the current dual class structure at Magna Inc.
The extortion attempt will be brought before a
shareholders' vote July 23. It must be remembered that many holders of
Class A Magna shares are speculating that the share price will rise
upon approval of the deal. Dual share ownership is considered among the
financial oligarchy as a drag on common share market
value as the owners of the privileged shares can manipulate the company
and its revenue through deals, fees and consulting contracts.
Magna directors led by former Ontario Premier Mike
Harris have said they back the Stronach extortion bid, which seriously
waters down Class A stock equity and continues to drain revenue from
the enterprise through the scam of consulting fees. They argue that the
Class A shares will be more attractive to institutional
investors because they will then have voting rights.
The CPP says that this may be the case but the price for
removing the Stronach family's privilege is too high. In early July,
the Ontario Securities Commission (OSC) refused a request by the
Ontario Teachers' Pension Plan and other large institutional investors
in Magna International Inc. for full intervenor status
at a hearing into the Stronach's extortion bid. At the hearing, the OSC
gave its approval for a shareholders' vote to proceed July 23. (The
scandal and corrupt practice of funnelling workers' pension funds into
these enterprises controlled by the international financial oligarchy
will be dealt with in a separate article.)
The OSC hearing revealed strong resistance from Frank and Belinda
Stronach to any modification of their extortion bid. The Stronachs say
the elimination of the dual class share structure will attract buyers
of the Class A shares increasing their value for which Belinda and
Frank deserve to be richly rewarded.
Institutional investors such as the CPP Fund and Ontario
Teachers' Pension Plan have challenged the Stronachs, calling the
extortion "abusive," "outrageous" and contrary to the public interest.
Even if shareholders, which include the Stronachs and many members of
their inner gang, approve the extortion bid,
the institutional investors say they will dispute it in commercial
court.
The Role of Former Premier of Ontario Mike Harris
Former Premier of Ontario Mike Harris, the top-ranking
independent director, which means not an acting executive manager at
Magna International, was reported to have been given responsibility to
negotiate a better deal for shareholders, something
more in line with the premiums that other rich families have demanded
in similar circumstances. Those deals have varied from a 0 per cent
premium to a high of 66 per cent, nowhere near the 1,800 plus per cent
premium of the Stronach scam. Apparently the CIBC prepared speaking
notes for Mr. Harris, including
a counteroffer worth about $400-million less than the over $1 billion
Stronach is demanding. But observers have complained of a conflict of
interest. Magna is a principal source of wealth for Harris, who was
given the director's position by Stronach in 2001. In 2009, Harris
received a base amount of $556,100 plus
deferred Magna share units totalling $2.7 million. For this amount,
Harris reportedly attended 23 meetings of the Board of Directors during
2009 and holds no management duties.
The Harris-led committee of directors in an amended
circular demanded by the OSC does not recommend how shareholders should
vote but makes it plain that the Stronach extortion bid should pass.
The circular says, "The special committee has reason to believe the
holders of class A subordinate voting shares,
as a class, might reasonably view the benefits to them of the proposal
as being worth the cost and therefore approve the arrangement
resolution . In that regard, each member of the special committee, in
his capacity as a holder of class A subordinate voting shares is in
favour of the approval of the arrangement
resolution."
The three directors of the committee, including Harris,
hold about 58,000 Magna shares. Each Class A share now trades for $71.
The extortion bid effectively values Stronach's Class B shares, which
normally cost a slight premium over Class A shares, at about $1,200.
The number of new Class A shares to be
given to Stronach dilutes existing shares by 11.4 per cent, far more
than similar deals by owners of dual class shares.
In his meeting with Frank Stronach to discuss softening
the extortion payoff, former Premier Harris said he did not even refer
to the CIBC proposal that would cut the payoff in half.
The amended proxy circular, which reports on his meeting
with the Stronachs, says, "Mr. Harris believed that proposing a
significant reduction in dilution could be counterproductive given Mr.
Stronach's apparent unwillingness to consider any material changes to
the fundamental financial terms suggested in the
speaking points prepared by CIBC."
Asked by the mass media to explain why he did not take
the CIBC proposal to Mr. Stronach, Harris declined to elaborate, saying
the circular "describes the reasons why I used my judgment in the way I
did in my meeting with Mr. Stronach."
The amended circular reads, "Mr. Stronach and Ms.
Stronach stated resolutely that they were personally unwilling to
reduce the dilution by any measure, but did undertake, on behalf of the
Stronach Trust to reflect on and consider the view of the special
committee."
Upon "reflection," Stronach later reported to Harris
that both of them would not accept any dilution of their extortion
attempt and if the shareholders rejected the proposal he and Belinda
would be happy to continue holding their Class B controlling shares
with all the associated privileges.
Unlike the first circular to shareholders, the latest
filings reveal "strong concerns" by the committee over the amount of
dilution for Class A share owners, consulting fees for Stronach and the
electric car venture but suggests that as individual owners of shares,
the directors will vote for the deal.
The Reaction of Pension Funds
The Financial Post June 3, reports on the
reaction of certain pension funds to the Stronach extortion: "Both
Canada Pension Plan Investment Board and the Ontario Teachers' Pension
Plan are expressing outrage at the compensation arrangement and are
hoping to draw a line in the corporate sand as a warning to other
companies that might be considering similar manoeuvres.
"While public pension plans have long opposed the dual
class share structures which are considered detrimental to capital
markets, ‘we believe that the premium being paid in this transaction is
totally unreasonable,' said David Denison, president and chief
executive of CPPIB, in a statement to the press.
"That sentiment was echoed by Teachers (OTPP), which
also has made its disapproval public.
"‘We were shocked and outraged,' said Wayne Kozun,
senior vice-president of public equities for Teachers'. Mr. Kozun said
the deal was unprecedented both in size and in the manner in which the
board has refused to make a recommendation to its shareholders. ‘We are
worried that it will set a precedent in
Canada,' he added. Mr. Kozun is hoping that by publishing their
position and the rationale behind it, other investors will be swayed to
vote against the deal.
"‘It's turning into bit of a showdown,' said Richard
LeBlanc, associate professor of corporate governance and ethics at York
University in Toronto, ‘There has been wide latitude for past
consulting payments made to Stronach, but with a premium this large,
the eyebrows have been raised . ‘The [pension plans]
are sending an unambiguous message to the market that this is
unacceptable.'
"Under the proposal, the Stronach family would get more
than 12 subordinate voting shares for each multiple voting share they
own. In addition to nine million new shares they will receive, which
are now worth more than $650-million, the family will also get a cash
payment of US$300-million. If you distil
it down to the number of multiple voting shares Mr. Stronach owns, the
executive compensation payout amounts to roughly $1,200 a share, one
analyst noted.
"Investors, for the most part, have plugged their noses
and accepted the terms of the deal. ‘Shareholders have waited a long
time for a proposal such as this which is also amenable to Mr.
Stronach, so some would say this is a one shot deal,' said one analyst
who does not wish to be identified.
"For years, Canada's pension plans have been leading a
charge to eliminate dual-class share structures. A handful of
companies, including MDC Partners, Home Capital Group, Sherritt
International and Sceptre Investment Counsel, have converted their
dual-share status to a single stock. But in seven of the eight
previous deals, there was no premium paid to controlling shareholders
for converting their dual shares. Sherritt International's controlling
shareholders received a 66% premium, but even that is small in relation
to the 1798% premium the board is offering to pay Magna's Class B
shares, according to Teachers'
calculation.
"A 2009 report, released by Toronto-based Osgoode Hall
Law School, concluded that between 20%-25% of companies listed on the
Toronto Stock Exchange have dual-share structures.
For Your Information
CPP Investment Board Opposes Proposed Magna International Transaction
- Press Release, June 3,
2010 -
[Note: The CPP Investment Board, Canada's second largest
pension plan manager with $127.6 billion in assets, holds 1.09 million
or almost one per cent of Magna's Class A shares. That ranks it among
the company's top 15 shareholders. -- TML
Ed.]
Premium on Reorganization of Share Capital Structure
Unreasonable
Toronto, ON (June 3, 2010) — The CPP Investment Board
(CPPIB) announced today that it will vote against the proposed
transaction agreement between Magna International Inc. (Magna) and the
Stronach Trust entered into on May 6, 2010.
The proposed transaction, if approved, would result in
the elimination of Magna's dual class share capital structure. However,
the consideration received by the Stronach Trust would have an
aggregate value of approximately US$863 million, which would unfairly
dilute the value of the subordinate voting shares.
"CPPIB is opposed to dual class share structures
involving different voting rights and therefore would generally support
transactions involving conversion of such share structures into a
single class with equal voting shares. However, we believe that the
premium being paid in this transaction is totally unreasonable,"
said David Denison, President & CEO, CPP Investment Board. "This
proposal is, in our view, unfair and unreasonable to the holders of
subordinate voting shares."
"CPPIB is particularly concerned that the Special
Committee of Magna's Board of Directors did not make any recommendation
with respect to the proposal, including as to the fairness of the
arrangement to Magna, its shareholders or other stakeholders, and that
CIBC, which was retained by the Special Committee,
did not provide a fairness opinion. We urge the Board to develop a
proposal to eliminate their dual class share structure in an equitable
way."
About the
CPP Investment Board
The CPP Investment Board is a professional investment
management organization that invests the funds not needed by the Canada
Pension Plan to pay current benefits on behalf of 17 million Canadian
contributors and beneficiaries. In order to build a diversified
portfolio of CPP assets, the CPP Investment Board
invests in public equities, private equities, real estate,
inflation-linked bonds, infrastructure and fixed income instruments.
Headquartered in Toronto, with offices in London and Hong Kong, the CPP
Investment Board is governed and managed independently of the Canada
Pension Plan and at arm's length from governments.
At March 31, 2010, the CPP Fund totalled C$127.6 billion. For more
information about the CPP Investment Board, please visit www.cppib.ca.
Current Magna Directors
Frank Stronach, Chairman of
the Board, Chairman of the Nominating Committee
Mr. Stronach, age 75, is the founder of Magna and serves
as the Chairman of the Board. Mr. Stronach is Partner, Stronach &
Co., through which he provides certain consulting and business
development services to Magna.
Michael D. Harris, Lead Director
Mr. Harris, age 65, is a Consultant and Senior Business
Advisor at Goodmans LLP, a law firm. In addition to serving on Magna's
Board since January 7, 2003, Mr. Harris serves on the Boards of
Canaccord Capital Inc.; Chartwell Seniors Housing REIT; Environmental
Management Solutions Inc.; and First Service
Corporation; as well as the board of Grant Forest Products, Inc. and
Tim Horton Children's Foundation. Mr. Harris is a Senior Fellow of the
Fraser Institute and was the Premier of the Province of Ontario, Canada
from 1995 to 2002.
Lady Barbara Judge
Lady Judge, age 61, is currently Chairman of the Board
of the United Kingdom Atomic Energy Authority, which position she has
held since July 2004, and on which she has been a member since
September 2002. In addition, Lady Judge is currently the Deputy
Chairman of the Financial Reporting Council (the
UK regulatory authority for accounting and corporate governance) and
Chairman of the School of Oriental & African Studies at London
University. Lady Judge is also Deputy Chairman of Friends Provident plc
and a non-executive director of Quintain Estates and Development plc
and PA Consulting. Prior to these
appointments, she founded and was Chairman of Private Equity Investor
plc, a fund of funds listed on the London Stock Exchange, and was
Executive Chairman of Whitworths plc. She was the first woman main
board director of Samuel Montagu & Co., and News International, as
well as head of international private
banking at Bankers Trust. She was previously a Commissioner of the
United States Securities and Exchange Commission from 1980 to 1983.
Louis E. Lataif
Mr. Lataif, age 71, has served as the Dean of the School
of Management of Boston University since 1991, prior to which he served
in various capacities with Ford Motor Company for 27 years, including
President of Ford of Europe (1988-1991). In addition to serving or
having served on the public boards of
Abiomed, Inc. (since 2005), Group 1 Automotive, Inc. (since 2002),
Magna Entertainment Corp. (2002-2007) and Intier Automotive Inc.
(2001-2005), Mr. Lataif serves on the board of Interaudi Bank and The
Iacocca Foundation.
Donald Resnick
Mr. Resnick, age 80, serves principally as a corporate
director and has served on Magna's Board since February 25, 1982. Mr.
Resnick previously served as a director of Consolidated Mercantile Inc.
and Genterra Inc. Mr. Resnick was formerly a partner of Deloitte &
Touche.
Belinda Stronach
Ms. Stronach, age 42, was appointed in April 2007 and is
currently Executive Vice-Chairman of Magna. In February 2001, Ms.
Stronach was appointed Chief Executive Officer of Magna and in January
2002 she also became Magna's President. Ms. Stronach announced her
resignation as President and Chief Executive
Officer of Magna on January 20, 2004 to seek election to the Parliament
of Canada to represent the riding of Newmarket-Aurora, Ontario. Ms.
Stronach was elected to the House of Commons in the 2004 general
election and then re-elected in the 2006 general election. In 2005 she
joined the Cabinet and assumed
responsibility for three separate and senior portfolios as Minister of
Human Resources and Skills Development, Minister responsible for
Democratic Renewal and Minister responsible for Service Canada. A
founding member of the Canadian Automotive Partnership Council, Ms.
Stronach has also served on the Ontario
Task Force on Productivity, Competitiveness and Economic Progress, and
is a director of the Yves Landry Foundation, established to advance
technological education and skills training for the manufacturing
industry. Prior to 2001, she held various other senior management
positions at Magna and served on the Board
between 1988 and 2004.
Franz Vranitzky
Mr. Vranitzky, age 70, is a corporate director. In
addition to serving on Magna's Board since June 11, 1997, Mr Vranitzky
serves as a Director of Touristik Union International and Magic Life
International, where he serves as Chairman. Mr. Vranitzky is a former
Federal Chancellor of the Republic of Austria
(1986 to 1997) and Minister of Finance (1984 to 1986), as well as a
former Chairman of the Board of Österreichische Länderbank AG
and Deputy Chairman of the Board, Creditanstalt-Bankverein Bank.
Donald J. Walker
Mr. Walker, age 51, serves as the Co-Chief Executive
Officer of Magna and was formerly the President, Chief Executive
Officer and a director of Intier Automotive Inc., one of Magna's former
"spinco" public subsidiaries. Mr. Walker has served on Magna's Board
since November 7, 2005 and previously served
on Magna's Board between 1994 and 2002, as well as the Boards of Decoma
International Inc. and Tesma International Inc. Mr. Walker is a
founding member of the Yves Landry Foundation and is the Co-Chair of
the Canadian Automotive Partnership Council.
Siegfried Wolf
Mr. Wolf, age 50, serves as the Co-Chief Executive
Officer of Magna. In addition to serving on Magna's Board since March
8, 1999, Mr. Wolf serves as a supervisory board member of
Verbundgesellschaft (Austria Hydro Power) (Vienna: VER);
Österreich Industrieholding AG (Republic of Austria holding and
privatization agency); Siemens AG Österreich (Siemens Austria);
and HGI Beteiligungs AG. He also previously served on the Boards of
Decoma International Inc., Intier Automotive Inc. and Tesma
International Inc.
Lawrence D. Worrall
Mr. Worrall, age 64, is a corporate director. In
addition to serving on Magna's Board since November 7, 2005, Mr.
Worrall is a director of the Greater Toronto Airport Authority;
Productivity Improvement Center; and director and Treasurer of Oshawa
General Hospital Foundation. Mr. Worrall is a former
Vice-President, Purchasing, Strategic Planning and Operations, as well
as a Director of General Motors of Canada Limited and former Director
and Chair of the Audit Committee of Intier Automotive Inc.
Retired Magna directors include former Ontario premiers
Bill Davis and David Peterson, and former federal Industry minister Ed
Lumley.
Brutality of Canadian Mining
Companies in Guatemala
The organization Rights
Action reports that Mayan-Mam
anti-mining activist
Teodora Antonia Hernandez Cinto was shot in the head on July 7 and as
of July 10
remained in
critical condition. She has been active in the struggle against
Canadian mining firm Goldcorp Inc.'s cyanide leaching gold mine in
Mayan territories of western Guatemala.
Rights Action states that the attack is likely part of the aggression
and human rights violations against those who oppose the destruction of
the social and human environments by the mine. The mining operation
continues despite an order from the Inter-American Commission of Human
Rights to cease.
Teodora
Antonia Hernandez Cinto
(Friends of the Earth Int'l)
|
On July 5, "a Rights Action delegation led by
co-director Grahame
Russell (with the Mayflower congregation of Minneapolis/St. Paul)
completed a two day visit to the mine's affected communities of San
Miguel Ixtahuacan (department of San Marcos). We spent our time with
ADISMI, the Association
for the Integral Development of San Miguel Ixtahuacan, visiting homes
and speaking with local villagers whose communities and lives have been
seriously harmed by the mining operation. In one of our meetings, we
met with Juan Mendez and Gregoria Crisanta Perez, cited in ADISMI's
urgent [call for] action below.
[...]"
"Goldcorp is doing and will
seemingly continue to do
everything
possible to not stop mining. With the price of gold near $1100/ounce,
they are making close to 8 times the profits from this mine that they
initially conceived, based on their original economic feasibility
studies."
Rights Action on July 10 noted that "Assuredly, the
government and
mining company will deny this was an assassination attempt against a
Mayan-Mam woman and community member who had regularly spoken out with
dignity, criticizing the harms and violations caused by Goldcorp's mine.
"For anyone who honestly follows Guatemala political and
human
rights issues, in the past and on-going today, there is little to no
doubt that this attempted killing was linked to Doña Maria's
peaceful,
clear-spoken opposition to the mine.
"As of the writing of this, Doña Maria's life
hangs in
the balance."
Call for Urgent Action from ADISMI, July 7, 2010
(Mimundo.org)
|
Doña Maria (Teodora
Antonia
Hernández Cinto) is part of the Resistance Movement in San
Miguel
Ixtahuacan, in defense of human and indigenous rights, against the
violations of human rights committed by the Montana Exploradora mining
company, subsidiary of Canadian
mining giant Goldcorp Inc.
Doña Maria has received numerous threats for her
participation in
the Resistance Movement. In June 2009, she was involved in the defense
of water in the neighborhood of Sacmuj, when Goldcorp/ Montana (always
trying to expand) wanted to get control of some land in Sacmuj and
their natural spring
water sources that supply local families with water.
"On July 7, at 11:30pm, as community members gathered by
the house
of Doña Maria, in solidarity with her family, they heard
gunshots fired
off near by.
Other Recent Incidents
On July 2, Juan Mendez was walking along the main road,
up the
mountain. At 4:45am, a Goldcorp/ Montana truck was coming down the
road, carrying workers to the mine. The truck belonged to the
Transportes Pérez company. This truck (that says "Especial" on
it) is
owned by Fernando Pérez of
the Caserío San José Nueva Esperanza. When the truck got
close to Juan
Mendez, the vehicle crossed over to the other side of the road,
straight at Juan Mendez, who was forced to scramble quickly up the side
of the embankment. Juan is well known in this region, for his
opposition to the harms and violations caused
by the mine.
On July 5, two daughters of Gregoria Crisanta
Pérez were walking on
the same road, at 6:30pm, in the village of Agel. The same thing
happened. A car -- green -- coming from the opposite direction, crossed
over the road divider and aimed at them, forcing them to run off the
road. They believe the
car belongs to Goldcorp/Montana.
Given this attempted killing of Teodora Antonia
Hernández Cinto and
other recent acts of aggression against people in opposition to
the
harms and violations caused by the mine, ADISMI demands of the
Guatemala government:
That it guarantee the life and security of those people
who demand
respect for their rights as related to the mining-harms and violations;
That it comply with the precautionary measures ordered
by the
Inter-American Commission of Human Rights and suspend the mining
operation;
ADISMI holds Goldcorp/Montana responsible for these acts
of physical
aggression and threats, given that the majority of threats and
attacks
come from workers in the mine.
From the national and international communities, we
request more
human rights accompaniment and more investigations into these and other
abuses;
ADISMI, PARROQUIA SAN MIGUEL, FEBIMI and ADIM
(All members of FREDEMI, the Miguelense Defense
Front)
Holding Canadian Government, Politicians and
Investors to Account
Rights Action is demanding that:
"The multiple environment and health harms and human
and
indigenous
rights violations caused directly or indirectly by Goldcorp's mine are
endemic, unending.
"At a bare minimum, we respectfully demand that Canada
publicly
support the suspension of the mine in Guatemala, as ordered by the
Inter-American Commission of Human Rights.
"From there, we demand a public, Canadian/international
inquiry into
the harms and violations caused by Goldcorp's mining in Guatemala.
"Based on a complete and transparent investigation, we
demand full
compensation and reparations for Mayan communities harmed by gold
mining.
"In Canada, we demand the passing of comprehensive
criminal and civil
law reform in Canada, so as to be able to hold Canadian companies and
investors legally accountable for environmental and health harms and
human rights violations caused by their operations in other countries."
For More Information:
Grahame Russell in Guatemala: 011-502-4955-3634,
info@rightsaction.org, www.rightsaction.org
Read The Marxist-Leninist
Daily
Website: www.cpcml.ca
Email: editor@cpcml.ca
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