Abotech Scandal Update #2: MP David Smith's six-figure company is run out of his home

a blog about news and politics by steve janke

Abotech Scandal Update #2: MP David Smith's six-figure company is run out of his home

Wednesday, October 19, 2005 at 07:33 PM Comments: 16

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So Liberal MP David Smith, representing the riding of Pontiac, is in hot water because the company of he was president has had several lucrative government contracts terminated as a result of an audit. The reasons include the fact that the contracts were sole-sourced.

My interest was piqued by the fact that I could not find any web presence for this computer consulting firm called Abotech. What sort of computer company doesn't have a web presence?

It's not even listed in the Yellow Pages. How did it ever get any contracts?

David Smith, a high ranking bureaucrat with Public Works and Government Services Canada before becoming an MP, claims to have severed all ties with this company when he was elected to parliament in June 2004, but the federal database lists him as president as recently as April 2005.

But maybe the data is old. On the other hand, the new president of the company is his wife, and his two kids are the other major owners. So the question remains about how severed he really is.

That questions becomes more complicated when you realize that he eats and sleeps at the head office. That's right, Abotech is run out of David Smith's house.

Recall the address of Abotech listed in the Strategis database?

Recall too how I can't find any evidence of this company anywhere on the web? Well, I found a description of the corporate office:

Sounds very pleasant. Note that Hull and Gatineau are the same as far as Mapblast is concerned.

I wonder who lives there?

Ah, David Smith lives there. Same phone number as in the property description. It's the family home.

Here is where it is located, near Ottawa:

Here is a satellite photo:

You can see the pool mentioned in the description. Nice to be able to afford a pool. Clearly this is a residential property in a typical Canadian subdivision being used as a place of business for a commercial enterprise pulling in six-figures from government contracts.

So this company, receiving over a million dollars in government contracts over 5 years, is being run out of David Smith's home in Gatineau, by his wife, with his two kids as the other major owners. Can't have many employees, now can it? I mean, where would they work?

Well, maybe they're off-site contractors of some kind. Sure.

And yet David Smith has no idea what is going on? What does his wife do, shove all the papers in a box when he pulls into the driveway?

And now we know how the government knew where to find Abotech. When the government was ready to hand Abotech a plum contract without competition and needed an address, all David Smith had to do was hand over his driver's license.

Now is anyone else wondering just how Abotech got picked for these contracts in the first place?

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Comments

GOOD WORK Angry!! You are amazing and we , Canadians are in your debt - proud to be in your debt. Thank-you

Posted by: Jema54 at October 19, 2005 07:43 PM

Thanks Jema. Now go vote for me on the left panel! I've fallen behind, darnit!

At least I'm trailing two most excellent blogs. No shame in that.

Posted by: Angry in T.O. at October 19, 2005 08:03 PM

"The KPMG audit estimated Abotech received about $1-million in federal contracts over the past five years, but Mr. Smith said the figure seems high to him. Public Works Canada records show that Abotech received almost $500,000 in contracts from the federal government in 2003 alone."

But, he doesn't know anything about the operations of Abotech

Posted by: foobius at October 19, 2005 08:10 PM

I'd love to say that I'm surprised. I'd love to think that this was just this one guy fleecing the country. I'd like to think that Canada will do something, anything, to stop the corruption.

But I'm not. It isn't. We won't.

I can understand why you're angry.

*disgust*

Posted by: Brad in Barrhead at October 19, 2005 08:23 PM

Contract Information
Overview > Reports > Quarter > Contract

Vendor Name: Abotech Inc.
Reference Number: 80-04-042-00140
Contract Date: 4/1/2004
Description of Work: 0401- Accounting and Audit Services
Contract Period: April 1 - June 30, 2004
Delivery Date: N/A
Contract Value: $ 24,921.00
Comments: N/A

http://www.irsr-rqpi.gc.ca/english/contract_info.asp?choice=contract&id=3
Indian Residential Schools Resolution

Posted by: maz2 at October 19, 2005 09:20 PM

That he is claiming that he "severed his ties" to a family company run out of the family home, is not only laughable, it is fraudulent.

His pathetic suggestion that he and his wife don't talk about the company, even if true (which is about as likely as my being able to turn down a beer while watching hockey...not very) is irrelevant - he and his family obviously continued to recieve a financial benefit. "Severing ties" doesn't mean "we won't talk about it", and he knows it.

Posted by: Jeff at October 19, 2005 09:55 PM

Compilation of three posts at the Shotgun.

'Superb. By the way the "Abo" in "Abotech" surely is short for aboriginal. The federal government has a policy under which departments are virtually
compelled to give contracts to supposedly aboriginal firms. There may be something in this aspect too.

See:

1) Procurement Strategy for Aboriginal Business: Guidelines for Buyers/Government Officials (Contracting Policy Notice 1997-6)
http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/ContPolNotices/97-6_e.asp

2) Aboriginal Business Procurement Policy and Incentives (Contracting Policy Notice 1996-2)
http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/ContPolNotices/96-2_e.asp

3) Aboriginal Business Procurement Policy Performance Objectives - (Contracting Policy Notice 1996-6)
http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/ContPolNotices/cpn_96-6_e.asp

Aha! Mr Smith is aboriginal! How coincidental. From Liberal Party website--note last name:
http://www.liberal.ca/newsletters/July2005_e.html

"Aboriginal Peoples' Commission of the Liberal Party of Canada

The Aboriginal Peoples' Commission (APC) congratulate Mr. Todd Russell for his election on May 24th [2005] as the newest Liberal member of Parliament representing the riding of Labrador. Mr. Russell, who is of Inuit ancestry, will join fellow Aboriginal Liberals Hon. Ethel Blondin-Andrew, Minister of Northern Development, Ms. Nancy Karetak-Lindell, MP Nunavut, Mr. Paul
Devillers, MP Simcoe North, and Mr. David Smith, MP Pontiac in caucus."

So perhaps we now know why Abotech got all those contracts.

And I might add it is well known within government that in many cases the supposedly aboriginal firms getting contracts simply have aboriginals as
front owners, with non-aboriginals really being behind the company.

21 Rue Meilleur, Gatineau?'

Mark
Ottawa

Posted by: Mark Collins at October 19, 2005 10:05 PM

Severing ties to the family business? Just the same as PMPM did when he handed over control of CSL to his sons, which at that time had been on the receiving end of over $162 million dollars via the taxpayers pocket while PMPM was Finance Minister!!!!
AUDIT THAT!!!!!!!!!!!!!

Posted by: Bruce Randall at October 19, 2005 11:05 PM

The question is, will any of the mainstream media pick this one up?

Angry... you should start contacting the papers and see if they have found this out. Kick their asses into action, that's what I say.

Posted by: Surecure at October 19, 2005 11:32 PM

This is premium stuff Angry! There's no way this isn't a major story requiring explaination from MP Smith.

Posted by: The Hack at October 20, 2005 09:43 AM

From the Hansard yesterday:

Hon. Jack Layton (Torontoâ€”Danforth, NDP): Mr. Speaker, Richard Mahoney is in trouble when the Prime Minister stands up for David Dingwall but on this issue remains silent.

Let me turn to another contract, this contract awarded on a sole source basis to a firm that used to be owned by a Liberal member of Parliament, the member for Pontiac, now owned by his wife and family. This is the latest in a long line of this kind of transgression.

When is the Prime Minister going to get to the bottom of these kinds of issues and clean up cronyism and corporate lobbying in the country?

Hon. Tony Valeri (Leader of the Government in the House of Commons, Lib.): Mr. Speaker, the hon. member for Pontiac denies any wrongdoing on his part, but has written to the Ethics Commissioner to ask him to look into this matter. I hope the member opposite waits for a response from the Ethics Commissioner before commenting on this issue in the House again.

[Then...]

Mr. Pierre Poilievre (Nepeanâ€”Carleton, CPC): Mr. Speaker, The Globe and Mail is reporting today that KPMG had found irregularities in the activities of the firm run by the family of the MP for Pontiac.

Does the Minister of Public Worksâ€”

The Speaker: An answer has already been provided by the Leader of the Government on the House of Commons, saying that the member for Pontiac had referred the matter to the ethics commissioner. I suggest that the hon. member refer to subsection 27(5) of Appendix 1 to the Standing Orders.

Once a request for an inquiry has been made to the Ethics Commissioner, Members should respect the process established by this Code and permit it to take place without commenting further on the matter.

The hon. member may ask another question, but not on the same matter.

[English]

Mr. Pierre Poilievre (Nepeanâ€”Carleton, CPC): Mr. Speaker, my question is more generally pertaining to Liberal fat and Liberal corruption, then. KPMG did an additional audit on approximately $16 million worth of additional contracts that were handed out and it found serious irregularities in that amount of money.

We already know that some of this money went directly to Liberal friends and Liberal cronies, some of whom sit in the House of Commons now. How much went to Liberal friends and Liberalâ€”

Some hon. members: Oh, oh!

---

Another Liberal tactic is exploited: refer the matter to the 'impartial' ethics commissioner for comment on the matter. Never mind that the ethics commissioner is appointed by the PM and is accountable only to the PM.

When will we say enough is enough and turf these turkeys out on their ears?

Posted by: slider at October 20, 2005 10:09 AM

Oh, oh... they referred it to Mr. "Shades-of-Grey". The question of course is whether Mr. "Grey" will submit any report he makes to David Smith before he tables it to the public... just like he did the last time he had to table an ethics report.

Posted by: Surecure at October 20, 2005 10:36 AM

When Smith was working at PWGSC his company got contracts from them or other federal departments/agencies, did it not? Conflict of interest?

Mark
Ottawa

Posted by: Mark Collins at October 20, 2005 01:02 PM

Angry, you are brilliant, one of the few bloggers actually digging up news instead of just commenting MSM garbage. And this Abotech story is great stuff.
BTW, I just voted for you. You were first, by very little.

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