Federal Independent Investigator Releases Report on RCMP Pension and Insurance Plans

OTTAWA, ONTARIO--(Marketwire - June 15, 2007) - The independent investigator appointed by the federal government to examine matters related to the RCMP pension and insurance plans released his final report today and called for an immediate and comprehensive review of the governance structure and culture of the RCMP. He does not rule out the need for amendments to the RCMP Act.

David Brown Q.C., former chairman of the Ontario Securities Commission, was asked to report to the Minister of Public Safety and the President of the Treasury Board nine weeks ago on key questions related to RCMP management responses to revelations about improprieties in the administration of the RCMP pension and insurance plans.

This report is the seventh "investigation" into matters surrounding the RCMP pension and insurance funds. Prior to this report, RCMP management conducted an internal audit of the pension plan in 2003, ordered a criminal investigation in 2004, conducted internal investigations and an internal audit in 2005, followed by a report by the Auditor General of Canada and subsequent hearings by the House of Commons Standing Committee on Public Accounts.

Mr. Brown sought to clarify conflicting information presented during the six previous investigations into this matter. Working with forensic investigators from KPMG, more than 400,000 documents and emails were collected from RCMP servers and personal computers, revealing 3,500 emails of relevance - many of which had not before been reviewed. More than 35,000 pages of documents were reviewed and 25 witnesses interviewed before Mr. Brown began to write his findings.

A Breach of Trust

"What happened in the administration of the RCMP pension and insurance plans constituted a fundamental breach of trust between the RCMP and its current and retired members," says Mr. Brown. "I found myself forced beyond these events to comment on a broader breach of trust between RCMP management and its members."

Corporate Governance and Cultural Changes Urgently Needed at RCMP

Mr. Brown recommends an urgent review and changes to the RCMP's culture, structure and governance. This should be conducted through a Task Force that will report back to the Minister of Public Safety by December 14, 2007. The Task Force should be comprised of members of the RCMP and senior public servants, as well as outside experts in relevant areas such as policing and governance.

"The current paramilitary, chain-of-command management structure at the RCMP works for a small police force but not a $3 billion enterprise. I am confident in saying that this is not a governance model that investors in a $3 billion business would ever accept."

Commissioner Zaccardelli's Impact on RCMP Culture

Mr. Brown acknowledges that current governance problems at the RCMP are institutional and long-standing, however points to recent leadership deficiencies of former RCMP Commissioner Zaccardelli as exacerbating the problems around the pension and insurance matters and overall culture of the RCMP.

"The issue with Commissioner Zaccardelli was not just his autocratic leadership style, but the way in which he articulated it. He expressed himself in passionate (some say intemperate) ways, with little regard or apparent respect for those with whom he was dealing."

"In an already fractured culture, senior management was projecting an attitude of disinterest and callousness in respect of an issue of legitimate concern to every single member - past and present - of the Force: their pensions. In the process, the Commissioner lost his troops."

Vindication of Whistleblowers

Mr. Brown vindicates the individuals who brought improprieties to light and admonishes former senior members of the RCMP for their poor reaction to the revelations.

"It is clear that several individuals who were instrumental in reporting and reviewing mismanagement were treated very unfairly by RCMP management and Commissioner Zaccardelli. To the extent that they were treated in accordance with 'RCMP practices', I believe those practices were used as a weapon in a war of personalities and as a cover to achieve the desired result of removing the whistleblowers."

"Each of the whistleblowers experienced career damage over the period in question while those responsible for the mismanagement were allowed soft landings. The individuals who brought these concerns forward should receive notations of commendation in their file, be recognized in a very public way for their contribution and the RCMP should put their careers back on track without penalty."

OPP Review Required of 2004 Criminal Investigation

Mr. Brown found that the criminal investigation requested by the RCMP in 2004 was not conducted independently. Mr. Brown stresses that it is impossible to determine whether or not the investigation materially suffered from this lack of independence and has recommended the Ontario Provincial Police immediately review the investigation to determine whether the findings are sound or whether a new investigation is required.

Public Inquiry not Required - Time for Action

Mr. Brown recommends against a full-blown public inquiry, saying that all relevant facts are now known and there is no reason - for an eighth time - to revisit the processes or issues that have been discussed as part of the investigations.

"At the conclusion of my work, I am able to report that there was no person with whom we wished to meet who declined to meet with us. Nor has any person declined to answer any question or to produce any document. Because of the extraordinary level of cooperation my office enjoyed from the RCMP under the command of Commissioner Busson, I had extensive access to all emails and documents. I can't conceive that access would have been greater had I been a commissioner under the Public Inquiries Act. Nor do I have any reason to believe that there is relevant information we have not received."

Mr. Brown's appointment and authority as the Independent Investigator into Matters Relating to RCMP Pension and Insurance Plans under the Public Service Employment Act expires at midnight on June 15, 2007.

BACKGROUNDER

Federal Independent Investigator Releases Report on RCMP Pension and Insurance Plans

MEDIA NOTE: The following is a summary of the questions posed to the Independent Investigator and his findings. Information presented in this media backgrounder is for the sole purpose of providing media with a quick reference guide and is not intended to comprehensively cover all the details and subtleties of the report's findings. Obviously the issues involved are complex and detailed - as is the process and argumentation for many of the findings in the full report.

Question 1: Was the RCMP's assessment of allegations of mismanagement of the RCMP pension and insurance plans conducted in an appropriate and timely manner?

- Brown found the 2003 internal audit was both appropriate and timely (page 18)

- Brown found the 2004 criminal investigation was not independent and not timely. It was impossible to determine whether the criminal investigation was ultimately 'appropriate' given the lack of independence; therefore, Brown has recommended an immediate Ontario Provincial Police review of the investigation. (pages 19-22)

- Brown found that the internal investigations concluded there had been wrongdoing on the part of senior officers; however, the RCMP was precluded from taking disciplinary action because their own limitation period had expired. Brown found that it was an "error in judgment" to have allowed this to happen. (pages 22-23)

Question 2: Were the members and employees involved in the reporting or reviewing of mismanagement treated fairly and in accordance with RCMP procedures and practices?

- Brown found that several individuals who were instrumental in reporting and reviewing mismanagement of the pension and insurance plans were treated very unfairly and recommends public recognition of their important contributions:

- Ms. Revine originally uncovered information that lead to the series of investigations. At no point since 2003 have her conclusions been in doubt. The RCMP removed her from her position and caused her a tremendous amount of stress - ultimately affecting her health. Brown recommends that his findings be given significant weight in her current mediation with the RCMP and that she be publicly recognized for her important contribution. (pages 25-27)

- Chief Superintendent Macaulay brought Ms. Revine's findings to Commissioner Zaccardelli and was immediately - and unacceptably - punished by being transferred out of Headquarters. Even after the transfer, Macaulay continued to push for transparency and resolution of the issues identified. Macaulay has since been transferred back to Headquarters. Brown recommends that a formal notation of commendation be attached to Macaulay's file and that the RCMP should publicly recognize his contributions - including by ensuring that he continues to enjoy the career he deserves. (page 27)

- Staff Sergeant Frizzell worked on the criminal investigation under the difficult circumstances of having no independence from the RCMP to do his job. This included the RCMP ordering him to cease his investigation. Brown recommends that a formal notation of commendation be attached to Frizzell's file and that the RCMP publicly recognize his contribution. (pages 28-29)

- Brown also recommends that the RCMP publicly recognize the contributions of Staff Sergeant Lewis (retired) and Staff Sergeant Walker. (page 29)

Question 3: Did management respond appropriately and in a timely manner to mistakes or inappropriate conduct by members and employees?

- Brown found that management's response was neither appropriate nor timely:

- The RCMP did not rectify the issue of returning monies to the pension and insurance plans on a timely basis (page 17)

- Although the RCMP did remove individuals responsible for the administration of the plans from their positions, the manner in which this was done left a perception of inaction and soft landing (page 32)

- RCMP management has done little to remediate the cultural and governance problems that allowed these events to take place (pages 39-46)

- The RCMP did an exceptionally poor job of communicating with those involved in uncovering the improprieties - which in part led to an escalation of concerns by these individuals (page 33)

Question 4: Did management respond to findings of mismanagement or non-compliance in a timely and effective manner?

- Brown found that while the RCMP dealt with individuals who were responsible for the mismanagement, nothing was done to change the culture or governance that allowed those individuals the authority to make the errors in the first place. Further, nothing was done vis-a-vis public servants after the removal of Mr. Ewanovich and Mr. Crupi. (pages 35-36)

Request for Recommendation #1: Provide a recommendation as to whether or not a more public inquiry with additional powers and authorities is necessary to address any outstanding questions.

- Brown concludes a public inquiry with additional powers and authorities would not reveal any additional or new information. Brown received an "extraordinary level of cooperation" from the Commissioner of the RCMP and was given access to any and all emails, documents and witnesses he wished to review or see. (pages 37-38)

- Brown notes that his report is the seventh "investigation" into this matter: 2003 internal audit, 2004 criminal investigation, 2005 internal investigation and internal audit, 2006 Auditor General Report and extensive review by the House of Commons Public Accounts Committee. (page 37)

- Brown finds that all relevant facts have been uncovered throughout the seven 'investigations' and it is now time for immediate action to correct fundamental governance and cultural problems at the RCMP. (page 47-48)

Request for Recommendation #2: Provide a recommendation as to whether a review is needed with respect to the overall management of the RCMP.

- Brown recommends an urgent and immediate Task Force on Governance and Cultural Change for the RCMP that will develop an appropriate governance structure and culture for the $3 billion organization. This recommendation is based, in part, on:

- Brown found the current "paramilitary" chain-of-command governance model at the RCMP does not fit with a $3 billion organization. (page 40)

- Brown found the RCMP's Code of Conduct is counter to a solid workplace disclosure policy and contains no protection for a whistleblower, and in fact can be used as a weapon in a war of personalities. (page 46)

- Brown found that former Commissioner Zaccardelli's "autocratic" leadership style set a "tone at the top" that encouraged similar management styles among his management team. This was fundamentally damaging to the culture of the RCMP. (pages 41-42)

- Brown found that Mr. Paul Gauvin, Deputy Commissioner of Corporate Management and Comptrollership, has accepted no responsibility for the issues identified. (pages 42-43)

- Brown found that although whistleblower protection was in place, it was never adequately operationalized and did not protect the individuals who came forward. (pages 43-44)

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