Contracting Out Is A Crime

Once again the attempt by the Liberals to Reinvent government, the mantra of the neo-con revolution of the nineties, ends up costing Canadians millions. Whether it was the P3 Boondoggle with the Firearms registry, the RCMP pension fund fraud or this case where the Department of National Defense was bilked for millions. It all has to do with contracting out and outsourcing IT functions of the State.

Ex-federal employee guilty of huge fraud

A former defence bureaucrat, who led a jet-set lifestyle, pleaded guilty today to two charges in a phoney contract billing scheme that bilked $146-million out of the federal government before it was stopped.

Paul Champagne, who had been an $80,000-a-year contract manager with the department, pleaded guilty to one count of fraud and one count of breach of trust in an Ottawa courtroom.

He was fired from his job in 2003 after billing irregularities were revealed involving a contract with U.S. computer giant Hewlett-Packard.

After a lengthy RCMP investigation, Champagne, 49, was charged with seven fraud-related crimes. After he pleaded guilty today to two charges, the Crown dropped the remaining five counts.

He will be sentenced in January.

In the late 1990s, the Defence Department issued a series of contracts to Hewlett-Packard (Canada) Inc., eventually paying $159 million for computer maintenance services. The government later discovered it got little or nothing for its money.

The Public Works Department red-flagged the contracts over the four years prior to Champagne's dismissal, but did nothing. A scathing report in 2003 found that managers at the federal government's tendering department failed to appreciate the significance of at least three audits that warned something was terribly wrong with the computer contracts.

After the scandal became public, Hewlett-Packard said it was told by the department to pay a group of subcontractors and their work was deemed secret.

In May 2004, the computer giant repaid $145 million to the federal government, and said its employees did nothing wrong.

Two Ottawa businessmen, Peter Mellon and Ignatius Manso, were also charged, but the Crown said Monday only one case remains to be resolved. A spokesman for the RCMP couldn't say what the status of the cases might be.

Over 10 years, starting in 1993, five contracts worth a total of $250 million were signed with the Compaq Computer Corp., Digital Equipment and Hewlett-Packard, which eventually bought Compaq.

Audits conducted by Public Works in 1999 and 2000 raised concerns about three of the contracts, but in 2001 a further review found unauthorized billing and "evidence of contractual funding appropriated for other purposes."

After Champagne was fired, National Defence did its own internal review of contracts and discovered problems with two dozen other projects. Today, the Defence Department did not respond to requests for comment about what safeguards have been put in place to prevent a repeat of the fiasco.

At the time of his arrest Champagne was a multimillionaire, who insisted his wealth and homes in exclusive districts of Ottawa, Florida and the Turks and Caicos were the results of shrewd investment in high-tech stocks during the tech boom of the late 1990s.

SEE:

Defense Lobbyist Now Minister

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Dinos and World Systems Theory

In the World Systems Theory of political economy, the sociologist Immanuel Wallerstien claims that capitalism evolved coincidentally with the decline of feudalism, it did not suddenly replace that political economic system but rather evolved out of it. It was not the only political economic system evolving at the time but the one that became dominate.

This can be proven with a simple example, a robber baron newspaper owner who sells his national citizenship in order to buy a lordship from Baronial Britain. Here we have someone who is a capitalist aspiring to the titles and honorifics of the old feudal order.

Now we find the same thing happened with proto-dinosaurs and their later dinosaur relatives. The dinos did not wipe out their earlier relatives but co existed with them. Much like the remnants of feudalism, Lords, Queens and Kings, autarchies, exist today under capitalism.,

UC Berkeley scientists, digging deep into a remote New Mexico hillside, have discovered a trove of fossil bones that they say is evidence that dinosaurs and their early relatives lived side by side for tens of millions of years before the relatives slowly died off and left the dinosaurs to dominate the ancient world.

Until now many scientists had thought that dinosaur "precursors" -- perhaps their ancestors -- disappeared suddenly long before the dinosaurs themselves rose to prominence, but the bones dug up by Berkeley paleontologists show evidence of a different story.

The discovery of a wide variety of creatures all mingled together in layer upon layer of rocks dating from Earth's late Triassic period between 235 million and 200 million years ago, they say, shows that the strange relatives of the dinosaurs remained on the scene while the dinosaurs evolved into truly dominant creatures during the Jurassic period, between 120 million and 200 million years ago.

Until now, many scientists have argued that the early close relatives of dinosaurs must have disappeared abruptly in an early "mass extinction" about 215 million years ago that has never been clearly explained. Others have thought that the true dinosaurs, whether carnivores or plant eaters, simply outcompeted their relatives for dominance in the ancient environment and quickly drove them to extinction.

And after all economists call themselves scientists. Of course like its prehistoric ancestor Capitalism itself is a dinosaur. And those who believe that Capitalism is, was, and will always be eternal are to political economy what creationists are to paleontology.



See:

Paleontologist Versus Paleo Conservatives

Commodity Fetish a Definition

Marx For Beginners

Saving Capitalism From Itself

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Damn Commie Canadians

Quick someone tell the flat earth society and the climate change deniers at the Blogging Tories.

Canadians prove humans are causing climate change

Like Medicare this will prove once again to the Republican and conservative American rightwhing whiners that their northern neighbours are truly evil and a socialist menace.



See:

Strange Bedfellows

Saving Capitalism From Itself

Echo Chamber

Fraser Institutes Flat Earth Report

Fraser Institute Meets Bill O'Riley

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