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Big Credit Suisse's Sweetheart Deal Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=23303"><span class="small">Ralph Nader, The Nader Page</span></a>   
Saturday, 24 May 2014 14:42

Nader writes: "Attorney General Eric Holder's sweetheart settlement with Switzerland's second largest bank, corporate criminal Credit Suisse, sent the wrong message to other corporate barons."

Ralph Nader. (photo: Guardian UK)
Ralph Nader. (photo: Guardian UK)


Big Credit Suisse's Sweetheart Deal

By Ralph Nader, The Nader Page

24 May 14

 

ttorney General Eric Holder’s sweetheart settlement with Switzerland’s second largest bank, corporate criminal Credit Suisse, sent the wrong message to other corporate barons. Senator John McCain (R-AZ) says it well:

“Nor does the plea deal hold any officers, directors or key executives individually accountable for wrongdoing, raising the question of whether it will sufficiently deter similar misconduct in the future.”

Mr. Holder, of course, touted the deal as tough. Credit Suisse was fined a non-deductible $2.6 billion for their long, elaborate plan to provide tax evasion services for many thousands of wealthy Americans. The bank agreed to plead guilty of criminal wrongdoing – a rare demand on the usually coddled large financial institutions. In addition, Credit Suisse, in Mr. Holder’s words, failed “to retain key documents, allowed evidence to be lost or destroyed, and conducted a shamefully inadequate internal inquiry”… through a “conspiracy” that “spanned decades.”

The bank also agreed to a “statement of facts” that detailed the nature of this conspiracy which is worthy of an international crime thriller and involved hundreds of Credit Suisse employees, “secret offshore accounts” and “sham entities and foundations.” In short, this was a broad-based and coordinated sizable, financial criminal enterprise.

Credit Suisse agreed to turn over information about other banks that may be engaged in similar cross-border crimes and also submitted to an outside, independent monitor for two years.

In return, here is what the corporate lawyers, King & Spalding, for Credit Suisse exacted from the Justice Department:

  1. The bank retained its permits and licenses to remain fully operational in the United States.

  2. Top management and directors emerged unscathed and were allowed to keep their lucrative positions.

  3. State and federal regulators, including the SEC and Federal Reserve, agreed not to take related actions against the bank.

  4. Credit Suisse does not have to give the Justice Department and the IRS the names of some 22,000 U.S. customers who engaged in these schemes, citing prohibitive Swiss law, which tough U.S. officials could have challenged with a waiver demand.

These concessions mystified both Senator McCain and Senator Carl Levin (D-MI), the latter having conducted an early inquiry into these crimes.

Credit Suisse’s CEO, American Brady Dougan, immediately issued a statement regretting “the past misconduct,” and then said that the deal will produce no “material impact” on “our operational or business capabilities.”

For comparison, let’s imagine that such crimes were committed by a community bank or a credit union. They would have shut them down and their executives would have been prosecuted, convicted and sent to jail, as many officials were during the savings and loan scandals in the Eighties and Nineties.

In short, Credit Suisse is not only too big to fail but its human schemers at the top rungs of the company apparently are too big to jail. Eight lower level supervisors were indicted. Six of them remain hidden in Switzerland and therefore can’t be extradited.

The aforementioned deal is relevant since it sets a precedent for the many future settlements expected in the near future between the Justice Department and the banks here and abroad. The more members of Congress from both parties howl and the more people demand an end to the double standard of enforcement between the Big Boys and the little guys, the stronger future deals will be and maybe Congress will beef up anemic enforcement budgets and pass stronger legislation regarding the corporate crime wave damaging our country and its people.

There is another problem that needs attention, as described by James Henry, former chief economist at McKinsey &Co. on Democracy Now, to wit:

“Eric Holder used to be an attorney at Covington & Burling, after he left the Clinton administration. He was handling UBS [a large Swiss bank] as a client. The chief IRS legal counsel, Mr. Wilkins, used to be a registered representative for the Swiss Banking Association in Washington, when he was a partner at WilmerHale. You have the U.S. treasury secretary, [who] was in charge of Citibank’s global private banking department when he was at Citibank in 2006…. [And] … one of the key golfing partners of the president of the United States, Robert Wolf, used to run UBS America. He was a big fundraiser for Obama in 2008. So this administration is permeated with people who are basically very sympathetic to Wall Street and to Swiss interests, as well.”

These previous relationships paint a troubling picture. Are these government officials willing to state publically that they are not going back through the revolving door to these law firms or large businesses? It is unlikely that they will deny themselves such a routine return to lucrative positions using the experience they built up, at taxpayers’ expense, to represent future corporate clients in trouble with law enforcement.

Mr. Holder would enhance his credibility in office were he to, at last, urge Congress to pass stronger corporate crime laws, adequate enforcement budgets and, endorse veteran Congressman John Conyers’ (D-MN) proposal to establish a corporate crime data base.

Alas, this stronger position against corporate crime is not likely to happen, even though it could save hundreds of billions of taxpayer dollars a year. According to the Government Accountability Office and leading expert, Professor Malcolm Sparrow of Harvard University, at least $270 billion will be drained away this year by the healthcare industry, just in computerized billing fraud and abuse.

Shuttling between governments and law firms has always been a tradition, most prominently exhibited by the powerful Lloyd Cutler in the Seventies and Eighties. The current issue of the Corporate Crime Reporter has published the names of the thirty top corporate criminal defense law firms arranging sixty percent of corporate deferred and non-prosecution agreements. It helps mightily for lawyers to bring their government regulatory experience to these giant power brokers.

Mr. Holder’s plea deal with Credit Suisse has to go for approval to U.S. District Judge Rebecca Smith. There may be intervenors objecting to its lenient terms. Stay tuned.

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A Pivot on the Peace Island Print
Saturday, 24 May 2014 14:37

Kelly writes: "Since 2007, activists have risked arrests, imprisonment, heavy fines and wildly excessive use of police force to resist the desecration caused as mega-corporations like Samsung and Daelim build a base to accommodate U.S. nuclear-powered aircraft carriers and submarines for their missions throughout Asia."

Kathy Kelly. (photo: Tyler Davis)
Kathy Kelly. (photo: Tyler Davis)


A Pivot on the Peace Island

By Kathy Kelly, Common Dreams

24 May 14

 

eju Island, South Korea – For the past two weeks, I’ve been in the Republic of Korea (ROK), as a guest of peace activists living in Gangjeong Village on ROK’s Jeju Island. Gangjeong is one of the ROK’s smallest villages, yet activists here, in their struggle against the construction of a massive naval base, have inspired people around the world.

Since 2007, activists have risked arrests, imprisonment, heavy fines and wildly excessive use of police force to resist the desecration caused as mega-corporations like Samsung and Daelim build a base to accommodate U.S. nuclear-powered aircraft carriers and submarines for their missions throughout Asia. The base fits the regional needs of the U.S. for a maritime military outpost that would enable it to continue developing its Asia Pivot strategy, gradually building towards and in the process provoking superpower conflict with China.

“We don’t need this base,” says Bishop Kang, a Catholic prelate who vigorously supports the opposition. He worries that if the base is completed, Jeju Island will become a focal point for Far Eastern military struggle, and that this would occur amid accelerating military tensions. “The strongest group in the whole world, the military, takes advantage of National Security ideology,” he continues. “Many people make money. Many governments are controlled by this militarism. The military generals, in their minds, may think they are doing this to protect their country, but in fact they’re controlled by the corporations.”

Jeju Islanders cannot ignore or forget that at least 30,000 of their grandparents and great grandparents were slaughtered by a U.S.-supported Korean government intent on crushing a tenacious democracy movement. The height of the assault in 1948 is referred to as the April 3 massacre, although the persecution and murderous suppression lasted many years. The national government now asking sacrifices of them has rarely been their friend.

But for the construction, Gangjeong seems a truly idyllic place to live. Lanes curving through the village are bordered by gardens and attractive small homes. Villagers prize hard work and honesty, in a town with apparently no need to lock up anything, where well-cultivated orange trees fill the eye with beauty and the air with inexpressible fragrance. Peaks rise in the distance, it’s a quick walk to the shore, and residents seem eager to guide their guests to nearby spots designated as especially sacred in the local religion as indicated by the quiet beauty to be found there.

One of these sacred sites, Gureombi Rock, is a single, massive 1.2 km lava rock which was home to a fresh water coastal wetland, pure fresh water springs and hundreds of plants and animal species. Now, it can only be accessed through the memories of villagers because the Gureombi Rock is the exact site chosen for construction of the naval base. My new friend, Tilcote, explained to me, through tears, that Gureombi has captured her heart and that now her heart aches for Gureombi.

Last night we gathered to watch and discuss a film by our activist film-maker and friend Cho Sung-Bong. Activists recalled living in a tent camp on Gureombi, successful for a time in blocking the construction companies. “Gureombi was our bed, our dinner table, our stage, and our prayer site,” said Jonghwan, who now works every day as a chef at the community kitchen. “Every morning we would wake and hear the waves and the birds.”

The film, set for release later this year, is called “Gureombi, the Wind is Blowing.” Cho, who had arrived in Gangjeong for a 2011 visit at the height of vigorous blockades aimed at halting construction, decided to stay and film what he saw. We see villagers use their bodies to defend Gureombi. They lie down beneath construction vehicles, challenge barges with kayaks, organize human chains, occupy cranes, and, bearing no arms, surround heavily armed riot police. The police use extreme force, the protesters regroup and repeat. Since 2007, over 700 arrests have been made with more than 26 people imprisoned, and hundreds of thousands in fines imposed on ordinary villagers. Gangjeong village now has the highest “crime” rate in South Korea!

Opposing the real crime of the base against such odds, the people here have managed to create all the “props” for a thriving community. The community kitchen serves food free of charge, 24 hours a day. The local peace center is also open most of the day and evening, as well as the Peaceful Café. Books abound, for lending, many of them donated by Korean authors who admire the villagers’ determination to resist the base construction. Food, and much wisdom, are available but so much more is needed.

After seven years of struggle many of the villagers simply can’t afford to incur additional fines, neglecting farms, and languishing, as too many have done, in prison. A creative holding pattern of resistance has developed which relies on community members from abroad and throughout the ROK to block the gate every morning in the context of a lengthy Catholic liturgy.

Priests and nuns, whose right to pray and celebrate the liturgy is protected by the Korean constitution, form a line in front of the gate. They sit in plastic chairs, for morning mass followed by recitation of the rosary. Police dutifully remove the priests, nuns and other activists about ten times over the course of the liturgy, allowing trucks to go through. The action slows down the construction process and sends a symbolic, daily message of resistance.

Returning to the U.S., I’ll carry memories not only of tenacious, creative, selfless struggle but also of the earnest questions posed by young Jeju Island students who themselves now face prospects of compulsory military service. Should they experiment with conscientious objection and face the harsh punishments imposed on those who oppose militarization by refusing military service?

Their questions help me pivot towards a clearer focus on how peace activists, worldwide, can oppose the U.S. pivot toward increasing militarization in Asia, increasing conflict with its global rivals, and a spread of weapons that it is everyone’s task to hinder as best they can.

Certainly one step is to consider the strength of Gangjeong Village, and to draw seriousness of purpose from their brave commitment and from the knowledge of what is at stake for them and for their region. It’s crucial to learn about their determination to be an island of peace. As we find ways to demand constructive cooperation between societies rather than relentless bullying and competition, their struggle should become ours.

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FOCUS | The Truth About Race in America: It's Getting Worse, Not Better Print
Saturday, 24 May 2014 12:54

Younge writes: "Progress is an essential tenet of America's civic religion. As someone born and raised in England, where 'not bad' is a compliment and 'could be worse' is positively upbeat, this strikes me as an endearing national characteristic. But as with any religion, when faith is pitted against experience, faith generally wins. And at that point, optimism begins to look suspiciously like delusion."

Race in America. (photo: Eileen Hart/Getty Images)
Race in America. (photo: Eileen Hart/Getty Images)


The Truth About Race in America: It's Getting Worse, Not Better

By Gary Younge, The Nation

24 May 14

 

Schools are resegregating, it’s getting harder to vote, too many are incarcerated—America is becoming more separate and less equal.

Progress is an essential tenet of America’s civic religion. As someone born and raised in England, where “not bad” is a compliment and “could be worse” is positively upbeat, this strikes me as an endearing national characteristic. But as with any religion, when faith is pitted against experience, faith generally wins. And at that point, optimism begins to look suspiciously like delusion.

Since 1977, when Gallup started asking people if they thought they’d be better off the following year, a huge majority have said yes. A 2005 poll revealed that even though only 2 percent of Americans describe themselves as rich, 31 percent thought it very likely or somewhat likely that they would “ever be rich.” And as in most religions, those who have the least are the most devout. Despite entrenched and growing inequality, the poorer people are, the more optimistic they are likely to be about their future financial health.

The sixtieth anniversary of Brown v. Board of Education, the landmark Supreme Court decision that struck down school segregation, offers yet another chance to gauge the progress toward racial equality in America. During this bumper period of civil rights commemorations—the current decade presents a litany of markers, from the uprisings in Birmingham to Martin Luther King’s assassination—the official mantra rarely changes: we have come a long way, but we have further to go. “To dismiss the magnitude of this progress…dishonors the courage and the sacrifice of those who paid the price to march in those years,” said Barack Obama, celebrating the March on Washington last year at the Lincoln Memorial. “But we would dishonor those heroes as well to suggest that the work of this nation is somehow complete.”

Who could argue with that? Half a century ago, America was officially an apartheid state, with black people denied the basic rights of citizenship in large swaths of the country. Then the signs came down; the laws were overturned; the doors to the polling stations were prized open. The notion that the work is proceeding perpetuates the myth: America has no reverse gear—we just keep going forward.

But the awkward truth is that when it comes to the goals laid down by the civil rights movement in general and Brown in particular, America is actually going backward. Schools are resegregating, legislation is being gutted, it’s getting harder to vote, large numbers are being deprived of their basic rights through incarceration, and the economic disparities between black and white are growing. In many areas, America is becoming more separate and less equal.

According to research recently conducted by ProPublica, “black children across the South now attend majority-black schools at levels not seen in four decades.” A recent Nation article illustrated how this trend is largely by design. In suburbs across the region, wealthier whites have been seceding from their inner- city school districts and setting up academic laagers of their own. The result is a concentration of race and class disadvantage in a system with far fewer resources. In a 2012 report, UCLA’s Civil Rights Project noted: “Nationwide, the typical black student is now in a school where almost two out of every three classmates (64%) are low-income.”

The discrepancy between black and white unemployment is the same as it was in 1963. According to the Institute on Assets and Social Policy at Brandeis University, between 1984 and 2007 the black-white wealth gap quadrupled. The Supreme Court is dismantling affirmative action and gutting voting rights. Meanwhile, incarceration disparities are higher than they were in the 1960s. And as Michelle Alexander points out in The New Jim Crow: “Once you’re labeled a felon, the old forms of discrimination—employment discrimination, housing discrimination, denial of the right to vote, denial of educational opportunity, denial of food stamps and other public benefits, and exclusion from jury service—are suddenly legal. As a criminal, you have scarcely more rights, and arguably less respect, than a black man living in Alabama at the height of Jim Crow. We have not ended racial caste in America; we have merely redesigned it.”

This is not to say that we have literally reverted to a bygone era. “No man ever steps in the same river twice,” goes the proverb. “For it’s not the same river and he’s not the same man.” We have a black president, a black attorney general and a black editor of The New York Times; there’s a growing trend to interracial relationships; suburbs are becoming more diverse. If the civil rights movement had been about getting black faces in new and high places, its work would now be done. But it wasn’t. It was about equality. And the problem is not that we still have a great deal of progress to be made or that progress is too slow—it’s that we are regressing.

This is not the first time this has happened. After the abolition of slavery, there was a brief period during Reconstruction when African-Americans made great strides, followed by a full-scale retrenchment in the South with the advent of Jim Crow. “The slave went free,” wrote W.E.B. Du Bois. “Stood a brief moment in the sun; then moved back again toward slavery.” In his speech, Obama acknowledged that “we’ll suffer the occasional setback.” But there’s nothing “occasional” about this: the current reversals in the achievements of the civil rights era are akin to those after Reconstruction. That period lasted almost ninety years, and it took a mass movement to end it.

King saw this coming. After he was booed by young black men at a meeting in Chicago in 1966, he reflected, “For twelve years, I and others like me had held out radiant promises of progress, I had preached to them about my dream…. They were now hostile because they were watching the dream they had so readily accepted turn into a frustrating nightmare.” In some quarters today, this would be considered blasphemy.

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FOCUS | 'A Government of Thugs': How Canada Treats Environmental Journalists Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=28234"><span class="small">Emily Atkin, ThinkProgress</span></a>   
Saturday, 24 May 2014 11:38

Atkin writes: "Up until the 1960s, the common name for Canada's massive reserves of heavy bitumen mixed with sand was 'tar sands.' Now, the phrase is officially considered a colloquialism, with 'oil sands' being the accurate name, according to the Canadian Association of Petroleum Producers. But 'tar sands' is not really an informal phrase in Canada as much as it is a symbol of your views. If you say tar sands, you're an environmentalist. If you say tar sands, you're the enemy."

An oil covered activist. (photo: Feminist Activism)
An oil covered activist. (photo: Feminist Activism)


'A Government of Thugs': How Canada Treats Environmental Journalists

By Emily Atkin, ThinkProgress

24 May 14

 

attempted to enter Canada on a Tuesday, flying into the small airport at Fort McMurray, Alberta, waiting for my turn to pass through customs.

“What brings you to Fort Mac?” a Canada Border Services Agency official asked. “I’m a journalist,” I said. “I’m here to see the tar sands.” He pointed me to border security. Another official, a tall, clean-shaven man, asked the same question. “I’m here to see the tar sands.” he frowned. “You mean oil sands. We don’t have tar here.”

Up until the 1960s, the common name for Canada’s massive reserves of heavy bitumen mixed with sand was “tar sands.” Now, the phrase is officially considered a colloquialism, with “oil sands” being the accurate name, according to the Canadian Association of Petroleum Producers. But “tar sands” is not really an informal phrase in Canada as much as it is a symbol of your views. If you say tar sands, you’re an environmentalist. If you say tar sands, you’re the enemy.

“We might have to send you back to the States,” the official said, after asking if I had working papers. I didn’t, so I phoned a colleague staying at a nearby hotel. “This guy at border security says I need working papers or something and that he’s gonna send me back to the States,” I said.

“Why did you say I was going to send you back to the States? I didn’t say that,” the official said after I hung up. “See, you’re already misrepresenting what’s going on here.”

My interrogation included details about where I was going, who I was meeting with, why I wanted to see the sands. The official had me open my bag so he could see if I was carrying cameras. Then he let me into Canada. “Because I’m being nice,” he said, and gave me a certificate stating that I must leave the country by Friday.

Can’t Criticize If You Don’t Know

In all, I was delayed for about 45 minutes — a relatively painless experience — but I did get the feeling I wasn’t the only one being hassled in Canada for an association with environmentalism. Indeed, as interviews with multiple reporters and activists show, the federal government places numerous obstacles in the way of those who try to disseminate information about the Canadian tar sands. Many believe this has amounted to a full-on war.

There are logical reasons why impeding environmental journalists could be in Canada’s interest. The tar sands are the third largest oil reserve in the world, and production is currently accelerating so quickly that the government predicts capital investments will reach $218 billion over the next 25 years. Part of that investment could come from the Keystone XL pipeline, the controversial proposal that, if approved, would bring up to 830,000 barrels of Canadian crude oil per day down to refineries in the U.S.

So it makes sense that Canadian officials may want to prevent environmental perspectives on Fort McMurray’s vast tar sands reserves, which have replaced thousands of acres of boreal forest with massive refineries and sprawling mining sites — shiny, black excavated deserts that sit next to glowing white ponds of chemical waste. A small portion of boreal forest remains, but it doesn’t do much to cover the scars.

An aerial view of tar sands mining in Fort McMurray.

An aerial view of tar sands mining in Fort McMurray. (photo: NextGen Climate Action)

From the air, you can see enormous white smokestacks 50 miles away. And from the ground, you can talk to those who have been physically harmed by accidental releases from the white ponds of tar sands chemical waste, called tailings ponds, which leech into the Athabasca river and flow downstream to First Nations communities like Fort Chip, where cancer rates have skyrocketed in the last 30 years.

Stories that describe the detrimental effects of Canada’s fossil fuel boom — not to mention the high carbon-intensity of tar sands oil extraction or unlikelihood that mining sites will ever be adequately reclaimed — threaten public support for projects like Keystone XL, and by extension, speedy and lucrative development.

‘A Culture Of Secrecy’

According to Tom Henheffer, executive director of the non-profit Canadian Journalists for Free Expression (CJFE), the Canadian federal government has been actively working for the last decade to prevent journalists’ access to information, particularly in science-related fields. The trend only got worse, he said, when current Prime Minister Stephen Harper, a fierce supporter of tar sands development, took office in 2006.

“It’s specifically very bad in science-related fields, but it extends into every other field,” Henheffer said. “This government has a culture of secrecy that is extremely harmful to Canadian society.”

Henheffer, whose group in April released its annual Review of Free Expression in Canada Report Card, noted two main issues at play. One, he said, is an increase in the amount of bureaucracy journalists must go through to get information. The other is a gradual de-funding of research, so the information journalists want isn’t even created in the first place.

The CJFE’s report card gave a failing grade to Canada’s access-to-information (ATI) system, which saw delays beyond the legal time limit affecting almost 45 percent of information requests, and more than 80 percent of responses partially or mostly censored. That report card also slammed the government for cutting scientific research, dismissing more than 2,000 scientists and cutting 165 research programs affecting “almost every federal scientific and monitoring institution.”

The report also noted a nationwide “muzzling” of federal scientists, citing government efforts to ensure its scientists limit discussions with the media on their work — much of which includes the environmental and climate impacts of tar sands development. This was confirmed in 2007, when a leaked PowerPoint presentation from Environment Canada revealed that government scientists were told to refer all media queries to communications officers who would help them respond with “approved lines.”

The current climate, Henheffer said, is frustrating journalistic efforts throughout the country.

“They’ve essentially dismantled our access to information system,” he said. “It makes investigative journalism impossible.”

The ‘Extremist Threat’ Of Environmentalists

Along with access to information for journalists, Stephen Harper’s government has also been working to dismantle environmental groups, a fact that has been revealed, ironically, by document requests from journalists. Those documents show unprecedented attempts from agencies across the federal government to spy on, de-fund, and otherwise disrupt the efforts of environmental groups.

The most recent example of this has been a rigorous effort by the Canada Revenue Agency to target environmental groups for possible abuse of their nonprofit charity statuses, alleging they may be violating the limits on how much political advocacy work they can do. The CRA’s $8 million effort was launched in 2012, shortly after the pro-tar sands group Ethical Oil kicked off a public campaign to “expose the radical foreign funded environmental groups” criticizing the oil industry.

“There are environmental and other radical groups that would seek to block this opportunity to diversify our trade,” Joe Oliver, then-Natural Resources Minister, wrote at the time. “These groups threaten to hijack our regulatory system to achieve their radical ideological agenda. They seek to exploit any loophole they can find, stacking public hearings with bodies to ensure that delays kill good projects.”

One of the original groups targeted was ForestEthics, a British Columbia-based nonprofit with branches in Vancouver and San Francisco. One of the fiercest and more outspoken opponents of the tar sands and the proposed Northern Gateway pipeline, the group responded by giving up its charitable status (thereby giving up tax breaks to its donors) so it could focus more on combating what it refers to as “attacks on the environment.”

“Ever since we formed the advocacy group we’ve been under further … ‘intense scrutiny’ I guess is the nicest way to put it, because the advocacy group is set up explicitly for the sake of taking on the Harper government,” ForestEthics tar sands campaigner Ben West said.

West said that since his group founded its advocacy arm, it has been a target of a recently-revealed spying effort by the Canadian federal government. That effort, revealed in November by a public records request from the Vancouver Observer, showed that officials had been sending spies to meetings of anti-tar sands groups, relaying their plans for rallies and strategies for public meetings.

What’s more, documents obtained in February by the Guardian revealed that both Canada’s national police force and intelligence agency view environmental activist protest activities as “forms of attack,” and depict those involved as national security threats. Greenpeace, for example, is officially regarded as an “extremist” threat.

A tar sands refinery in Fort McMurray.

A tar sands refinery in Fort McMurray. (photo: Emily Akin)

West said the revelations have had a “chilling” effect on the groups’ volunteer and donor base.

“The word is out that ForestEthics is one of the groups that the federal government is paying close attention to, and that has an impact on people’s comfort levels and their desire to get involved,” West said. “If you look at the pieces of the documents we were able to get our hands on, they explain what was happening at meetings where you would have had to have been in the room to have known the content of that meeting.”

‘A Government Of Thugs’

In addition to the more-calculated attempts to prevent environmental criticism, multiple reporters and activists say they experience an egregious amount of defensiveness, spitefulness, and intimidation from the federal government that prevents them from doing their jobs effectively.

“We have a government of thugs in Ottawa these days who are absolutely ruthless,” said Andrew Nikiforuk, an award-winning journalist who has been reporting critically on Canada’s oil and gas industry for more than 20 years. “It’s a hostility and thuggery, is the way I would describe it. That’s exactly what it is.”

Nikiforuk says he’s been shut out of government events, “slandered and libeled” by a member of the government’s conservative party, and repeatedly contacted by government flacks who criticize his reporting.

The most blatant example of government intimidation Nikiforuk can recall was when members of Canada’s Energy Resources Conservation Board actively tried to prevent the publication of his 2010 book, Tar Sands, claiming he made numerous factual errors and posting a long letter about it on its website. Nikifourk rebutted the claims, eventually winning the Society of Environmental Journalist’s Rachel Carson Book Award for his reporting.

Documentary and satire filmmakers Andy Cobb and Mike Damanskis also said they experienced government intimidation when, like me, they were detained at the Fort McMurray airport in October 2013. Unlike me, however, they were deported.

“He basically told us that the tar sands weren’t news, that he wasn’t recognizing us as journalists, and that if we wanted to come to Canada, we weren’t going to be able to do it today,” Damanskis said.

Though it seemed like at first they would be able to enter the country without working papers, Damanskis and Cobb said the border official had an “immediate change of heart” after watching a clip of their previous work — a video satirizing the infamous Mayflower, Arkansas tar sands pipeline spill.

Border spokesperson Lisa White said she was not authorized to speak on specific cases, and declined to specify whether officers were allowed to make entry decisions based on the content of journalists’ work. She did say, however, that documentary filmmakers required working papers to enter Canada, and that all entry decisions are made on a case-by-case basis.

“All decisions are made in accordance with Canadian law,” she said.

Swift And Snarky Push-Back

Of course, it’s important to note that journalists like Nikiforuk, Damaskis, and Cobb are more likely to get negative feedback from Canadian government officials because they are not, and don’t claim to be, completely objective. All three are openly and fiercely opposed to the speed of tar sands development.

But even reporters who are seemingly more objective toward development have been subject to government push-back. For example, Economist correspondent Madelaine Drohan said via e-mail that Alberta’s provincial government once posted a “defensive” response on its website to an article she wrote that mentioned leaks from tailings ponds, which are large lakes of tar sands waste. That response has since been removed, but Drohan said she remembers it happening.

“It made me think that the government was even more sensitive than the industry,” she said.

As for hostility from the Alberta provincial government, one journalist pointed specifically to David Sands, a director at Alberta’s Public Affairs Bureau, whose Twitter account is made up largely of rebuttals to journalism critical of Alberta government. In recent tweets, Sands compared two newspapers’ coverage of Parliament to “jihad,” among other critical responses.

“Yeah, I’m the mean guy,” Sands told ThinkProgress. “It’s definitely my personal style, but nobody told me to be mean.”

Sands said part of his job is tracking down stories that include inaccuracies about Alberta government policies. He said he’s the only one in his department with the specific mandate to do so.

Waste ponds at a tar sands mining site in Fort McMurray.

Waste ponds at a tar sands mining site in Fort McMurray. (photo: NextGen Climate Action)

Still, many have criticized Alberta for the number of people they’ve employed to hunt down stories. According to documents obtained by the Canadian Taxpayers’ Federation in April, Alberta employs 214 communications professionals at a cost of $21 million per year, a number that the National Post noted “far outstrips” the number of reporters who cover government.

Sands rebutted that story too, saying communications staff span a range of departments — healthcare, education, law enforcement — that are not all dedicated to attacking journalists.

“It’s sort of an enjoyment of the media to say we have 214 communications people who are all dealing with the media,” he said. “When reporting is challenged, people take it very personally.”

The Strategy Is Working - Or Is It?

Thus far, government push-back against environmental journalism seems to be working. As a recent survey of Canadian journalists showed, many environmental and climate stories about the tar sands often go unreported. That survey, titled “The Alberta Oil Sands, Journalists, and Their Sources,” questioned 20 reporters with extensive daily experience reporting on the tar sands.

Of the 20, 14 said stories about the tar sands were not being told, and seven of those 14 said environmental issues were the main ones untouched. Environmental damage done by leaking tailings ponds and bitumen waste; toxic contaminants leeching into the water; the impact of excess sulfur produced in the mining process — all of those were included in the issues journalists perceive as under-reported.

“I hate this story,” one reporter who participated in the study said. “It’s important, but there’s no direction or progression.”

As for activist groups, Ben West of ForestEthics said the hostility has actually been helping his group’s efforts. And it’s not just the group itself. As the government’s attacks have become more and more public, West says his and other environmental advocacy groups have been obtaining record-breaking donations from individuals — what he calls a “clear sign” that Canadians want to protect their environment from the tar sands.

“I actually kind of welcome these attacks from the federal government in a sense, because they are a great opportunity to highlight how crazy our government’s acting, and use it as a reason to ask people for more support,” he said. “Many Canadians feel strongly about this. Let the government create their own disincentives.”

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The Secrecy Surrounding Canada's Tar Sands Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=11104"><span class="small">Charles Pierce, Esquire</span></a>   
Saturday, 24 May 2014 09:25

Pierce writes: "The folks at Think Progress have a profoundly terrifying report from the blasted environmental moonscape of northern Alberta, whence the world's dirtiest fossil fuel may one day flow down our old friend, the Keystone XL pipeline, the continent-spanning death funnel that will run from said moonscape, through the heart of some of the world's most precious farmland, and eventually to the refineries of Texas, and thence to the world."

Three million gallons of contaminated water is estimated to be leaking from these ponds into nearby rivers and environment every day. (photo: Rethink Alberta)
Three million gallons of contaminated water is estimated to be leaking from these ponds into nearby rivers and environment every day. (photo: Rethink Alberta)


The Secrecy Surrounding Canada's Tar Sands

By Charles Pierce, Esquire

24 May 14

 

he folks at Think Progress have a profoundly terrifying report from the blasted environmental moonscape of northern Alberta, whence the world's dirtiest fossil fuel may one day flow down our old friend, the Keystone XL pipeline, the continent-spanning death funnel that will run from said moonscape, through the heart of some of the world's most precious farmland, and eventually to the refineries of Texas, and thence to the world. (Two uses of "whence" in one sentence? I'll have the resume off to the BBC by Monday.) It seems that the tar-sands operation now pretty much involves a serious portion of the Canadian government, and it would rather the world not know what's going on in the boodocks.

According to Tom Henheffer, executive director of the non-profit Canadian Journalists for Free Expression (CJFE), the Canadian federal government has been actively working for the last decade to prevent journalists' access to information, particularly in science-related fields. The trend only got worse, he said, when current Prime Minister Stephen Harper, a fierce supporter of tar sands development, took office in 2006. "It's specifically very bad in science-related fields, but it extends into every other field," Henheffer said. "This government has a culture of secrecy that is extremely harmful to Canadian society."

The umbrella of this secrecy apparently is being used, not to protect Canadian citizens, but to shield corporate profits. And secrecy is not the only weapon of the government that has been brought to bear.

What's more, documents obtained in February by the Guardian revealed that both Canada's national police force and intelligence agency view environmental activist protest activities as "forms of attack," and depict those involved as national security threats. Greenpeace, for example, is officially regarded as an "extremist" threat.

(And if you're wondering if it can happen here, remember that the all-too-human, but curiously error-prone, heroes of our intelligence community already are doing some subcontracting work for American corporations. Yell "terrorist" and half the government goes on point. I don't like the civil-liberties chances of anyone opposing this pipeline in the United States if it gets approved and once the construction begins.)

This whole project has been ethically hinky from jump. The case for the pipeline was built on lies and exaggeration. (Don't forget to count the strippers! Jobs!) TransCanada, the Canadian corporation that wants to build it, has been dealing double with farmers all along the proposed route, most notably in Nebraska and in Texas. The company already has bent too many local and state governments to its will. This is a profoundly corrupt enterprise, which is why it is cloaked with the kind of secrecy in Canada that inevitably will come to be the norm here. That's reason enough to reject it.

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