Trade Centre Limited president Scott Ferguson was fully aware of the city of Halifax’s back-door loan policy to Power Promotions, says Suzanne Fougere, Ferguson’s spokesperson.
But TCL had no reason to suspect the loans were improper, says Fougere. “We were given direction by HRM to release the funds from the Metro Centre account. In the case of this particular issue, Metro Centre was directed by HRM to release financial support for the promoter—it was done solely at the direction and authorization of the acting CAO.”
In addition to the improper loans, The Coast has learned that TCL lost an additional $89,903 on the Black Eyed Peas show, related to “event settlement”—the costs associated with Ticket Atlantic, TCL’s ticketing agency.
TCL had no responsibility to question the propriety of the loans, says Fougere. “In terms of what rationale they have for that financial report or what internal protocols they followed to provide us that authorization, that’s something you’d have to speak to them about. We received the authorization from the acting CAO, and they are the owners of the facility. We act at their direction as it relates to that facility.”
Still, according to a report written by the Cathie O’Toole, the city’s finance director, “further investigation is required around the Articles of Incorporation of Metro Centre Limited to examine whether the transactions are compliant.”
The particular issue of whether TCL had a responsibility in the loan matter is “something the auditor-general will examine in his report,” O’Toole tells The Coast. That report will be made public in early May, says auditor-general Larry Munro.
The concert scandal comes just as the city and TCL are together urging the federal government to provide $46 million in funding for a new convention centre in downtown Halifax. Under the proposal, the city and province would contract with TCL to manage the convention centre.
Many observers believe a federal election could be called as early as Monday, or possibly Tuesday, when prime minister Stephen Harper delivers his budget to parliament. Once an election is called, the federal government cannot make large expenditures like that proposed for the Halifax convention centre.
But with the city fully embroiled in an accounting scandal, and with TCL at least tangentially involved, if not more so, can the Harper government truly claim it has done “due diligence” in examining the business case for the convention centre?
Time will tell.
For The Coast’s complete coverage of the Common concert financing scandal, click here.
Related Stories
Updated—Common concerts: by the numbers
Concert scandal rocks City Hall
This article appears in Mar 17-23, 2011.
once again,no REAL prove of bad dealings on the behalf of tcl…tim just opens the door,smears them with no prove and leaves…im tired of this sophomoric approach to so called journalism.
Open your eyes halifaxmentor, or are you totally brain dead? It’s all a good ole boys club wheeling and dealing behind closed doors. Thank god that tool Anstey is gone, as fake as a $3 bill. He should have known better now he’s “retiring” hopefully with his reputation in shatters. Any self respecting CAO would have known better than to authorize this. (Butts needs to get rid of this culture if he’ll survive) Now we have TCL who should have known better as well. Ya, there’s no other “proof”, but it’ll come out in the wash.
thanks for the play by play, Tim.
I jokingly mentioned to a co-worker that you would try to link these two issues, but sure enough you did. I once considered this newspaper a source of information, but now after years of reading your rants I consider it no better than a tabloid or National Enquirer-like fringe publication that is good for a laugh and the then start the campfire with. How many times will you beat a dead horse with the convention center conspiracy theory? I’m not defending the actions of under the table business deals to float concerts on the commons that would barely sell out the metrocenter just so we can play a game of whos’ bigger with Moncton. But for sh*t’s sake, leave it up to the feds to decide if the convention center fits in their budget, as far as Halifax goes it was debated and you were on the losing side.
Metro Centre Limited does not exist.
It is a fiction.
It died on Dec 29 1983.
It is not registered under Nova Scotia legislation regarding businesses.
Records at the Registry of Joint Stocks, available online here http://www.gov.ns.ca/snsmr/access/business…
are clear.
It was struck off.
KPMG as auditor may be able to explain the status.
Or if you want, here is an explanation : http://www.tradecentrelimited.com/site-tcl…
Scroll down to the footnotes page 7 where it says “Halifax Metro Centre (the Centre) is a sports and entertainment complex managed and operated for the Halifax Regional Municipality (HRM) by Trade Centre Limited, a body corporate, incorporated under the laws of the Province of Nova Scotia.
Perhaps the minutes of TCL will provide details of the “in-and-out’ scheme, otherwise known as the ‘Kelly Caper”.
@halifaxmentor: Then why read the Coast, for christ sakes, let the man do his job, go read the Herald. If you think you can do a better job, go apply for his.
@kph06: Wow, I hope you have a crystal ball, if you don’t get one.
Tim has done alot to uncover what is going on behind closed doors in this ole boys club called halifax. Personally, i thinks he’s doing a good job of it.
keep up the good work Tim.
To “?”
Glad to see he pulled the wool over your eyes, to me, his credibility went out the window when the Coast had to post this retration over his Convention Center article: http://www.thecoast.ca/RealityBites/archiv…
Thank you Joe for that clarity. It seemed so strange when people started talking about “Metro Centre” as if it were some independent going concern business.
There a lot more to come out here. I hope we get to the bottom of this once and for all, wake form TCL’s leisure economy dreams and get Halifax back to work…
I’ve been doing some reading about this tonight.
It’s well worth reading TCL’s current Business Plan on their web site http://www.tradecentrelimited.com
What is Metro Centre? A business unit of TCL
Who is responsible for managing the Metro Centre? TCL
Who is responsible for managing Ticket Atlantic? TCL
Who is responsible for Major Events Halifax? TCL
Who has consistently taken credit for all the concerts now in question? TCL
Who was paid (a lot) to engage and oversee all the Commons Concerts and kept a 10% “holdback” on the $400k transaction not authorized by the CAO or Mayor? TCL
Who actually cut all the cheques to the promoter over the years? TCL
What board reviewed these transactions year in and year out and said nothing? TCL’s
Who knew that the concerts were not successful and that the promoter was inflating the numbers over years? TCL
Who kept that information secret from the public? TCL
Who still hasn’t spoken directly to the public on this issue and only makes denial statements through “spokespeople”? TCL
Their business plan reads quite plainly. Their mission is to do whatever it takes to get more events in Halifax. To the point of desperation and foolishness, they did that and now the Mayor and Mr. Anstey, and to a lesser extent council is being held accountable for TCL’s misguided mission.
kph06 actually mentioned this to me (if I’m not mistaken on his identity) at work earlier this week. I don’t think the two commons concerts last year were a good idea because it was clear from day 1 that they wouldn’t break even, but come ON. Two unrelated issues. We’ve done the war on the convention center already in Halifax and the “pro convention” side won. I’m not going to give an opinion on the convention center, because I am pretty much split on it, but clearly the city was in favor. Let the feds do what they will, they aren’t playing city politics.
It should and no doubt Ottawa is looking at this closely. With any luck Ottawa will save us from the incompetent municipal and provincial governments.
i read this rag in hopes that it will change or improve,but it’s stuck in the yellow journalism level for much too long ….plus any opinions are so one sided that it’s laughable…Tim and elk are so left and anti-development that their views are taking with a grain of salt by many…please,shake your heads and realize that painting everyone with the same brush gives NO CREDIBILITY to their arguments !!!!