Carney set up a blind trust, screens to avoid conflicts of interest. Is that enough?

Former Conservative Leader Pierre Poilievre has accused Liberal Leader Mark Carney of being influenced by China due to his past corporate stints and financial holdings. Carney, who was the former board chair of Brookfield Asset Management, a leading global investment firm with over $1 trillion of assets under management, has come under scrutiny for holding stock options worth $6.8 million in the company.

Questions have been raised about potential conflicts of interest, especially after Poilievre alleged that Carney helped secure a $250-million loan for Brookfield from the Bank of China. Carney has insisted that his assets, apart from cash and real estate, are in a blind trust and that he is not indebted to China.

Under current government ethics rules, Carney had to disclose his assets to the ethics commissioner upon becoming prime minister and place them in a blind trust. However, the effectiveness of a blind trust in avoiding conflicts of interest has been questioned by experts. While it may work for passive investors, it may not be sufficient for those actively involved in decision-making.

To address concerns about potential conflicts, Carney has set up screens with the help of the government’s ethics commissioner. These screens are meant to divert any issues related to his past corporate work away from him, ensuring that he does not make decisions that could directly benefit his financial interests. The screens will be administered by the clerk of the Privy Council and Carney’s chief of staff, who will intercept any files that could impact Brookfield or Stripe, another company where Carney served on the board.

While the effectiveness of these screens remains to be seen, Carney has taken steps to comply with ethical guidelines and avoid conflicts of interest. The Office of the Conflict of Interest and Ethics Commissioner continues to review the information submitted by Carney and provide guidance on arranging his affairs to prevent conflicts and comply with the Conflict of Interest Act. As the debate over Carney’s financial holdings and past corporate ties continues, the effectiveness of these measures in ensuring transparency and accountability will be closely monitored.