It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Thursday, March 21, 2024
Scientists fired from Winnipeg lab over security fears rightly under probe: minister
OTTAWA — It's "extremely appropriate" that two scientists who lost their jobs due to dealings with China remain under investigation, Health Minister Mark Holland said Wednesday.
The National Microbiology Laboratory researchers were fired in early 2021 after their security clearances were revoked over questions about their loyalty and the potential for coercion by China.
Records tabled in Parliament late last month say the scientists, Xiangguo Qiu and her husband, Keding Cheng, played down their collaborations with Chinese government agencies.
The RCMP said Wednesday a national security investigation into the matter, which begain in May 2019, remains underway.
The Mounties started the probe following a referral from the Public Health Agency of Canada.
The Globe and Mail newspaper reported Wednesday the two scientists have been using pseudonyms as they build a new life in China.
Holland said he was "deeply disturbed" by the scientists' behaviour.
"They're under an investigation, and rightfully so," he said.
"That investigation is ongoing. It would be inappropriate for me to comment on the nature of that investigation. But I would say that it's extremely appropriate that the investigations are occurring."
The documents presented to Parliament show the Canadian Security Intelligence Service concluded that Qiu repeatedly lied about the extent of her work with institutions of the Chinese government.
Related video: Documents on fired Winnipeg scientists released (Global News)
The records also say she refused to admit involvement in various Chinese programs even when evidence was presented to her.
CSIS found that Qiu provided at least two employees of Chinese government institutions access to the microbiology laboratory, and consistently said she had very limited knowledge of these institutions' mandates, "despite an abundance of evidence that she was actually working with or for them."
Upon release of the records, the Public Health Agency said it had taken steps to bolster research security in response to the episode.
The microbiology laboratory has a "renewed, proactive security posture" that has reinforced the physical security of the building, the health agency said.
"Screening measures are strictly enforced for all staff and external visitors, including the requirement for visitors to be accompanied at all times and without exception."
The Public Health Agency needs to provide a fuller explanation of exactly what it has done, said Wesley Wark, a senior fellow with the Centre for International Governance Innovation.
Wark, a national security expert who has closely followed the issue, said the agency must be able to demonstrate concretely how it has changed the lab's practices with regard to security training, data protection and information technology.
"From my perspective, there's two things that we need to know," Wark said.
"One is the details of the changes. The other is, was there a review conducted in order to make those changes, to make sure that they were going to be adequate?"
A spokesman for the Public Health Agency did not have immediate answers Wednesday to questions about the security changes.
This report by The Canadian Press was first published March 20, 2024.
In April of this year the RCMP announced that they had uncovered a bio-terrorist threat involving two Canadian scientists working for the innocuous sounding: Canadian Food Inspection Agency (CFIA).
The two CFIA scientists were busted for attempting to sell Brucellis virus to China. In fact one of the scientists, herself Chinese, had gotten away to China.1They were under investigation for two years when it became known that they were trying to commercialize the bacteria they had developed with CFIA.
SWEAT SHOP ECONOMICS
Investment firms see 'blood in the water' at Gildan: analyst
BNN Bloomberg
A market analyst believes investors may have seen “blood in the water” at Gildan Activewear and decided to take advantage with a push to buy the company.
On Tuesday, Gildan revealed it was exploring a possible sale as the company has embroiled in a tense dispute between its main shareholders over the dismissal of former CEO Glenn Chamandy. Now, sources told Bloomberg News that private equity firm Sycamore Partners is considering a bid for the clothing brand.
David Swartz, senior equity analyst at Morningstar Research Services, told BNN Bloomberg that companies may be looking to bounce on the company tumult.
“It appears that this was a completely unsolicited offer, there's no indication that Gildan's board was actually trying to sell the company until apparently, someone came forward with an offer, probably smelling blood in the water with all the controversy between the board and the shareholders,” he said in a television interview on Wednesday.
“It seems like Gildan's board had to do a pretty big shift there and decide whether to pursue this acquisition, and it seems like the prices that are being discussed are strong enough that the board really couldn't ignore the offer and now they're going to have to pursue it.”
Browning West, an investment firm with a roughly five per cent stake in Gildan that’s trying to reinstate Chamandy, said it was “naturally concerned” to hear of the news, and that the “current ‘lame duck’ board” is not equipped to evaluate any sale offers.
Browning West also mentioned a rumoured price of US$42 per share, saying shareholders should be “dismayed” but the offer.
Meanwhile, Swartz believes the rumoured price is a “strong offer” and should give Browning West reason for optimism.
“That's well above my fair value estimates for the company,” he said. “I value Gildan right now at only US$31, so a US$42 take-out price, I believe that would be the all-time high.”
“If that comes to pass, then I think that's a good outcome and I don't know what Browning West is now complaining about it.”
Given the challenges between shareholders and executives, Swartz believes a sale may be the best option for all sides.
“This could be probably the best scenario, the best way out of this mess, because right now the board and the shareholders, especially Browning West, are at a complete impasse, and there doesn't seem to be any room for negotiation,” he said.
“A sale of the company would at least end the whole controversy over who's going to control Gildan.”
Robert McFarlane, a corporate governance director and former CFO of Telus, told BNN Bloomberg that the latest developments at Gildan were not a surprise.
“This has played out exactly as I expected,” he said. “Browning West … they would expect this to have been a possible outcome as well. So it’s been the activists’ playbook if you will.”
McFarlane added that Gildan is right to do its due diligence on any serious offers.
“If they received unsolicited offers, they need to get advice, which they’re doing, evaluate those and decide whether it’s in the best interest of shareholders and other stakeholders,” he said.
With files from Bloomberg News
Sycamore Partners explores bid for apparel maker Gildan activewear
Gillian Tan, Mathieu Dion and Derek Decloet, Bloomberg News
GILDAN ACTIVEWEAR INC (GIL:CT)
51.110.09 (0.18%)
As of: 03/21/24 9:37:58 am REAL-TIME QUOTE. Prices update every five seconds for TSX-listed stocks
Private equity firm Sycamore Partners is exploring an offer for Gildan Activewear Inc., the Canadian clothing manufacturer that owns the American Apparel brand, people familiar with the matter said.
The New York-based buyout firm has discussed financing options with potential lenders, according to one of the people, who requested anonymity to discuss confidential information.
Montreal-based Gildan — which is in the middle of an ugly dispute between its board and some of its largest shareholders — confirmed Tuesday that it has received a “confidential non-binding expression of interest to acquire” the company, and has set up a board committee to review the proposal and any alternative transaction.
The committee and Gildan’s financial advisers contacted a small number of potential buyers, “several” of which have expressed interest in a friendly takeover, the company said, without naming them. Still, “there can be no assurance any transaction will result from these discussions.”
A representative for Sycamore declined to comment. The firm focuses on retail and consumer investments, and has done deals in Canada before, buying the Canadian retail business of Lowe’s Cos. for about US$400 million in a transaction announced in 2022.
Gildan has hired Goldman Sachs Group Inc., RBC Capital Markets and Canaccord Genuity Group Inc. to give advise, according to a person familiar with the matter.
Shares of Gildan surged 10.8 per cent in Toronto trading on Tuesday — giving the company a market value of about $8.6 billion (US$6.3 billion) — before trading was halted. The Globe & Mail was the first to report the interest from possible buyers.
Gildan’s board has been fighting with several institutional shareholders and former Chief Executive Officer Glenn Chamandy, who was sacked in December over disagreements about the company’s succession plan and strategy. The board hired Vince Tyra, a former Fruit of the Loom executive, to replace him.
The dissident group of investors, which holds more than one third of Gildan’s shares, is led by Los Angeles-based investment firm Browning West LP. The money manager is seeking to reinstate Chamandy by electing a new board at the company’s annual meeting on May 28.
Browning West is now suing the company and its board, accusing them of disregarding the rights and interests of shareholders.
Major Canadian Gildan shareholder weighs in on dramatic boardroom saga
Jordan Fleguel, BNN Bloomberg
One of Gildan Activewear Inc.’s largest shareholders says the increasingly bitter feud between the company’s board of directors and its former CEO “never should have ended” in such dramatic fashion.
Evan J. Mancer, president and chief investment officer of Winnipeg-based Cardinal Capital Management, said his firm is one of a number of high-profile shareholders who would like to see Gildan’s ousted CEO and co-founder Glenn Chamandy reinstated.
“I'm not sure how they got to this… I think there's probably more ego involved than logic,” Mancer told BNN Bloomberg in a television interview Friday morning.
“I don't know who started it, between the board and (Chamandy); founders can be very passionate about their companies… but it never should have ended like this.”
Chamandy had served as head of the Montreal-based company for nearly 20 years before he was dismissed by Gildan’s board late last year and replaced by former Fruit of the Loom executive, Vince Tyra.
The board said at the time that they had lost faith in Chamandy’s ability to deliver long-term strategic objectives, but Chamandy maintains he was fired without cause, and said he had the backing of the company’s management team.
Mancer, whose firm is estimated to be Gildan’s twelfth largest shareholder, said he thinks Gildan was “extremely well managed” under Chamandy’s leadership, and that his past moves have set the company up for future success.
“It's extremely rare that a board would ever fire a successful CEO… even if there's some ego involved, at the end of the day, the job of the board is really to keep your successful CEO, not to let them go,” he said.
Activist investor Browning West
U.S. investment firm Browning West has been the most outspoken Gildan shareholder that wants to see Chamandy reinstated as CEO, and the firm has also said it will seek to replace eight of the 11 directors on Gildan’s board.
Mancer said that while he initially only wanted Chamandy reinstated, he can’t see how he and the board that ousted him could work together again, and said that Browning West’s proposed change of directors is “probably the only solution.”
“I think Browning West actually did a really good job with this new slate of directors that they're proposing,” he added.
“They're all industry heavyweights for one, but also, there's two or three of them that have got a lot of experience with succession, having worked with founders in the past, and obviously having come through what we just came through, that's very much needed at Gildan.”
Ukraine has received $1.5 billion from Canada, which will help the government finance the deficit, particularly social assistance programs for Ukrainians, according to the Telegram channel of Ukraine's Prime Minister Denys Shmyhal.
"Important funds that will help our government finance the deficit, particularly social assistance programs for Ukrainians," Shmyhal wrote.
He noted that the total amount of financial support from Canada since the start of Russia's full-scale invasion amounts to nearly $7 billion Canadian dollars.
As of March 19, it became known that Canada, as part of new military aid, will provide Ukraine with a batch of night vision devices.
Additionally, on March 20, the Canadian Senate approved a free trade bill with Ukraine.
Canadian Defense Minister Bill Blair stated that the country could purchase drones manufactured in Ukraine.
NDP alleges UCP instructed AHS to delete sexual health social media
Alberta Health Services has removed 20 social media accounts from multiple platforms. Among the deleted AHS-affiliated accounts were those used to share sexual health education content, a move Alberta's official opposition says was directed by the United Conservative Party and obstructs access to critical health information.
A spokesperson for the Alberta NDP said in an email that last week the party was informed that notice had been given to have sexual health related social media and teaching be closed through AHS. By that time, AHS-affiliated accounts such as Calgary Zone Sexual and Reproductive Health, Teaching Sexual Health, Healthy Parents, Healthy Children, and others had already been removed.
"The UCP can’t stop interfering with access to women’s healthcare and critical health information, which includes sexual health," Alberta NDP Status of Women Critic Julia Hayter said in a statement.
“Sharing accurate, science-based sexual health information on social media platforms promotes important sexual health awareness for parents and teachers, and provides critical information for young people about consent.
"First, the UCP made it more difficult for kids to learn about sexual health in schools and now they’re gatekeeping access to sexual health education online," Hayter said
AHS denies the organization was instructed by the Government of Alberta to remove the sexual health education content, and that they were deleted as part of a consolidation of all AHS media accounts.
"Alberta Heath did not provide any instruction for this account to be removed," an AHS spokesperson said in an email.
"We are consolidating the AHS social media accounts to ensure all AHS accounts are sharing organization-approved content and closing accounts that have demonstrated limited public engagement. Public health content, including sexual health content, is important and will continue to be shared on AHS’ main social media channels."
AHS shut down 11 accounts on X (Twitter), four on Instagram, four on Facebook, and one on Pinterest, a spokesperson confirmed.
"Information that would have previously been published using those accounts will instead be consolidated on our main AHS social media accounts," they said.
AHS did not provide the names of which accounts were removed in its consolidation. An archived version of the AHS social media page from February 2024 shows the following accounts have been removed from the current AHS website.
Twitter:
Instagram:
Facebook:
Alberta's Ministry of Health did not respond to questions about whether the ministry or the Government of Alberta had instructed AHS to remove social media accounts related to sexual health education and instead referred questions to AHS.
Brett McKay, Local Journalism Initiative Reporter, St. Albert Gazette
Alberta economy in generally good shape, though uncertainties linger: ATB report
Alberta’s economy is in generally good shape with growth forecast to outpace the national average, according to ATB’s latest economic outlook, though it warns that high interest rates, continued global political uncertainty and threats of drought and wildfires could affect that outlook.
The report was released Wednesday and predicts the province will see real GDP — an inflation-adjusted measure — will grow by 2.3 per cent this year, and then up to 2.7 per cent in the following year.
“Alberta’s economy continues to push through inflation and interest rate headwinds,” the report states.
Here’s a breakdown of some of the other details contained in Wednesday’s report. The big picture
The report portrays a province with a largely promising outlook for the coming years, though elements of uncertainty linger.
In its baseline, or medium case, the authors characterize the provincial economy as now being in “expansion mode,” having recovered in 2022 the lost output from prior recessions.
They expect Alberta to continue to lead all provinces in population growth while also outpacing the national economy in job creation.
It forecasts oil prices to be near the US$74 mark forecast in the most recent provincial budget, before falling to US$69 in 2026.
Unemployment is expected to rise slightly this year to 6.1 per cent measured as an annual, average percentage before falling below the six per cent mark in the following two years.
Financial pressures on consumers will begin to ease, according to the report, but will also remain prominent enough that consumer spending and business investment may slow down.
“Given the uncertainty, it’s best to plan for a range of plausible outcomes.”
Reasons for optimism
The report acknowledges that Alberta’s economy is “highly exposed to global risks” but also finds reasons for optimism that the downside of those risks won’t fully materialize.
It lists likely improved market access for Alberta’s energy sector with the expected Trans Mountain pipeline expansion project expected to be online by mid-year, adding 590,000 barrels per day of new oil pipeline capacity.
Also, the Coastal GasLink pipeline has finished construction and will link to LNG Canada, supporting Alberta natural gas prices that have stumbled in recent months thanks to a glut of supply from the unusually warm winter weather.
Sources of uncertainty
Forecasts are limited by the reality of unforeseen events arising.
The report describes the degree of uncertainty as “particularly high” at the moment, citing the ongoing war in Ukraine, China’s “wobbly” economic trajectory, and a slew of upcoming federal elections across the globe, including in the United States.
While the report’s authors are optimistic interest rates will be cut as soon as June, they also acknowledge “persistent wage growth and sluggish productivity” could see those cuts pushed back. Inflation
“Inflation storm clouds are slowly parting,” the reports states, with the inflation rate falling from a peak of 8.1 per cent in the summer of 2022 down to three per cent in recent weeks and approaching two per cent by early 2025.
However, it remains a problem for many, with prices now 14 per cent higher than in January 2021, led by shelter costs which the authors say has replaced food as the new inflation problem.
ABritish company's acquisition of the Hinton pulp mill could breathe new life into an aging industrial landmark in the Alberta foothills.
Mondi, which produces sustainable packaging such as paper wrappers and envelopes, finalized its purchase of the pulp and paper mill last month for $5 million.
"We try to make this world a little better place," Roman Senecky, chief operations officer of kraft paper for Mondi, said at a news conference Wednesday.
The Hinton mill is the first Canadian acquisition for the company, which has 22,000 employees in 30 countries.
Senecky said making kraft paper in Hinton will allow Mondi to produce the raw material for customized products closer to its existing 10 North American plants, rather than importing paper from Europe.
West Fraser Timber Co., which sold the mill to Mondi, had been scaling down operations and reducing jobs at the 67-year-old mill.
The timber company will continue to supply wood to the mill.
Senecky said Mondi is also studying an expansion project to add a kraft paper machine to the site to produce up to 200,000 tonnes of paper each year.
Although the company last year pegged the machine cost at around $580 million and planned to build by 2027, a spokesperson said Wednesday the timeline and cost are both subject to pre-engineering and permitting.
Mondi did not provide an estimate of how many new jobs could be created. New ownership gives Hinton new life, mayor says
At a launch event in Hinton on Wednesday, Mayor Nicholas Nissen said the new ownership marks the rebirth of Hinton. About 10,000 people live in the town, which is 285 kilometres west of Edmonton.
"The mill, everyone can tell, was coming up at the end of its life," Nissen said. "It breathes new life both into the mill, [and] into our town. It's a great long-term commitment for both us and Mondi."
The pulp mill was Alberta's first when it opened in 1957. Nissen said its construction sparked Hinton's incorporation as a town, which happened the following year.
The town has granted Mondi a 100 per cent property tax exemption for 15 years for any new equipment and property on the site.
Hinton relies on equipment on the mill site for treatment of civic water and wastewater. In February, the town inked new 20-year agreements with the company. The mill will treat the town's wastewater and supply the town with process water that it can treat for drinking.
Hinton's chief administrative officer, Jordan Panasiuk, said in an email the mill buys about $500,000-worth of drinking water from the town annually.
Alberta Jobs, Economy and Trade Minister Matt Jones said he's happy to see investment in the province's forestry manufacturing sector. He said it helps diversify the province's economy and create green jobs.
Jones said the acquisition is also a vote of confidence in the government's welcoming approach to investors.
"We have an obsession with being pro-business and anti-red tape," Jones said.
'Serious errors' by B.C. prison officials who knew about a 4-year water leak: report
The federal Public Sector Integrity Commissioner says the Correctional Service of Canada committed "gross mismanagement" when it took nearly four years to fix pipes at a B.C. prison that were leaking chemically treated water into the ground.
Harriet Solloway says millions of litres of water from the building's heating system seeped into the ground surrounding the Matsqui Institution in Abbotsford, B.C., which is on top of three aquifers, including one that flows into a salmon-bearing stream.
"In reviewing the evidence, it becomes clear that CSC management did not undertake adequate and timely remedial action, demonstrating serious errors impacting safety and potentially harming the environment — not reflecting responsible stewardship of government funds and assets," Solloway concluded in her report issued this week.
The central water system's main purpose is to supply hot water for domestic use and heat the three institutions that are part of the Matsqui Complex, which houses more than 1,000 inmates.
Solloway's report says an engineer first noticed problems with the system, which requires the addition of anti-corrosion chemicals to boiling water, in August 2017 and warned officials about "a substantial leak."
They were told that the best way to fix the leak is to dig up the system, which is about one and a half metres underground.
Excavation of the area began the next month but had to stop because of the frozen winter ground.
Almost a year later, in July 2018, the engineer sent an email to management noting, “this leak needs to be addressed" and that by the end of the month, approximately 1.1 million litres of chemically treated hot water would have seeped into the ground.
Solloway's report says the department tried unsuccessfully in 2018 to locate the leak using a procedure involving high-water pressure and a vacuum to remove soil.
"The engineer continued to raise the alarm throughout 2020 and 2021, but he was ignored," the report says.
Solloway says management didn't believe the leak was worsening, despite their lack of engineering expertise, with some managers suggesting the monitoring equipment was not “scientific enough.”
"These assertions were made by managers who did not possess engineering expertise to make such determinations," the report says.
The report says cost, and the possibility that the system was going to be replaced, may be two reasons for the inaction.
"Finally, on April 29, 2021, excavation of the entire pipe system was undertaken, nearly four years after an engineer’s recommendation. As a result, multiple leaks were eventually found. By that time, according to CSC engineering personnel, millions of litres of chemically treated hot water had seeped into the ground," the report says.
Solloway made four recommendations in her report, including that the department establish an "action plan" for critical infrastructure risks and failures, that maintenance plans are up to date and that there be an environmental impact assessment.
In a response included with the report, the Correctional Service of Canada says it disagrees that it committed wrongdoing, noting that an independent report in 2022 found there was no contamination from the "highly diluted rust inhibitors" leaking from the pipes.
It says reports in 2020 and 2021 "deemed the risks to be negligible."
This report by The Canadian Press was first published March 20, 2024.