October 22, 2003
Mr. Fraser Reilly-King
153 Chapel Street, Ste 104
Ottawa ON KIN 1H5
Re: Compliance program file number 2236--1-1-2003
Dear Mr. Reilly-King:
With this letter, I would like to report to you the status of the compliance program review of your letter of complaint dated July 28, 2003.
To reiterate, in your letter, you alleged that Export Development Canada (EDC) "violated the spirit of its disclosure policy, environmental review directive [(ERD)] and Code of Business Ethics" in relation to the Cernavoda 2 nuclear power plant transaction in Romania. You set out specific sections of each policy and proffered substantiating information for the allegations of non-compliance. You saw my role "as interpreting these policies in ways that ensure that they are implemented to their best intent."
Regarding the implementation of the policies, as part of your desired result or outcome of the investigation, you provided both general and specific requests. For example, you requested that I "further review the policies contained in the ERD and make recommendations as to how the crown corporation can ensure that this breach of its policies does not happen again."
The contents of your letter came within the scope of the compliance program and a letter of acceptance was mailed to you on August 25, 2003. As set out in my up-date letter to you dated September 16, 2003, your allegations of non-compliance were reviewed pursuant to the compliance program. This review consisted of an initial appraisal, the acceptance, an assessment, and a fact-finding exercise.
In the course of assessment of the complaint and the fact-finding stage of the program, I conducted much research into this matter, reviewed necessary files, and interviewed appropriate EDC personnel. This process took approximately two months to complete. I found no clear evidence of non-compliance during this review process.
Even with no apparent evidence of non-compliance, in reviewing allegations of non-compliance, my role is to assist EDC in addressing issues and, where appropriate, to take steps to promote the settlement of complaints. The compliance program sets out three main ways to promote such settlement: a) dialogue; b) dispute resolution process; or c) compliance audit.
Therefore, considering the items you suggested and requested as your desired result of the investigation (both the general and specific requests), in an attempt to speak to a large number of the issues contained in your letter, I have recommended to EDC management that a compliance audit be conducted as to the application of the three noted policies to this particular transaction.
In making this recommendation, no adverse inferences or assumptions should be drawn regarding the efforts to which EDC personnel involved in this file made to ensure adherence to the named policies. In recommending a compliance audit, I am striving to provide to you the maximum attainment of your desired results.
As far as a timeline is concerned, EDC management may wish to confer with the Audit Committee and/or Board of Directors on this matter. The regularly scheduled fourth quarter meeting is to be held early December, 2003. At that time I will be providing my regular quarterly report to the Audit Committee of the Board and this report will include an update on the complaint, as well as the status of the recommendation.
Should you have any questions or concerns, please do not hesitate to contact me.