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WE Charity spent hundreds of thousands on U.S. political consultants, IRS filings show – The Globe and Mail

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Marc Kielburger, screen left, and Craig Kielburger, screen right, appear as witnesses via videoconference during a House of Commons finance committee in the Wellington Building in Ottawa on on July 28, 2020.

Sean Kilpatrick/The Canadian Press

WE Charity spent more than US$600,000 on political consultants in Washington last year, including a firm co-founded by a trio of long-time Republican Party strategists.

The U.S. arm of the Toronto-based charity paid three consultancies a total of US$605,853 in the fiscal year ended Aug. 31, 2019, according to filings with the Internal Revenue Service.

The payments included US$130,000 to Firehouse Strategies, which was co-founded by three veterans of Senator Marco Rubio’s 2016 presidential campaign: Terry Sullivan, the campaign manager; Alex Conant, the communications director; and Will Holley, the chief adviser on delegate strategy.

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The Firehouse website says it is a “full-service public affairs firm that focuses on delivering targeted persuasion campaigns.” It has become a regular pollster for the Republican Party, and the partners are frequent commentators on the upcoming presidential contest. It says its team “curates authentic content from media sources and influencers.”

Matt Terrill, a Firehouse partner who served as chief of staff on the Rubio campaign, said the firm’s work for WE mainly involved the annual gatherings the charity describes as “a powerful celebration of individuals who are making an impact.”

“Our efforts were focused on supporting WE Charity’s WE Day events, specifically in key regions in the United States, including Washington, D.C.,” Mr. Terrill said in an e-mail. “We represent several Fortune 100 companies, major trade associations and non-profits.”

WE Day events have been held in 19 cities across Canada, the U.S., Britain and the Caribbean. In the U.S., the arena-sized affairs have taken place in New York, Dallas, Los Angeles, Chicago, Minneapolis and Seattle. There has yet to be a WE Day in Washington, D.C.

WE officials did not respond to questions about why the charity hired the consultants.

Republican operatives, including two with links to Mr. Rubio’s campaign, wrote a series of articles in 2018 and 2019 that sought to discredit Canadaland, a news outlet that has published investigative stories over the past two years raising questions about WE and its initiatives focusing on child labour and overseas development.

WE has denied any wrongdoing and has been critical of the coverage. Lawyers for the charity issued notices of libel but did not file a lawsuit, Canadaland has said. One of the charity’s lawyers hired a private investigation firm to conduct background checks on two of its journalists, according to Canadaland publisher Jesse Brown, who posted what he described as an excerpt from one of the background checks on his Twitter account this month.

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Read Craig Kielburger’s opening remarks to the federal finance committee

In testimony before the House of Commons finance committee this week, MP Pierre Poilievre repeatedly asked whether WE’s lawyers had hired a private investigator to look into the Canadaland journalists, but WE founders Craig and Marc Kielburger declined to answer the question.

Last year, before the Firehouse contract came to light, Canadaland questioned why a number of U.S. Republican consultants had written articles attacking the news outlet and whether it was part of an organized campaign.

Among the Republican operatives who attacked Canadaland is Ben Proler, who worked on Mr. Rubio’s presidential campaign and is currently on the board of the U.S. political action committee Maverick PAC, which “provides a platform to engage the next generation of young, conservative professionals in business and politics.”

In an article in a Texas newspaper last year, Mr. Proler criticized Canadaland and complained that the news outlet was “adding to Canada’s growing fake news fears.” The newspaper, The Southeast Texas Record, is a trade publication that primarily covers the state’s legal system.

Mr. Proler was unavailable for comment.

Another U.S. Republican who has tried to discredit Canadaland is Zachary Almond, a former chair of the North Carolina Federation of College Republicans and a former political consultant to Representative Robert Pittenger, one of the leaders of Mr. Rubio’s presidential campaign in North Carolina. In November, 2018, Mr. Almond wrote an article for Red State, a U.S. conservative blog, criticizing Canadaland for “false content.”

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Reached by phone Tuesday, he declined to comment.

Mr. Proler’s and Mr. Almond’s Twitter accounts both show connections to Firehouse Strategies. Of the 244 accounts that Mr. Almond follows on Twitter, three of them are Firehouse, Mr. Conant and Mr. Terrill. Of the 118 accounts Mr. Proler follows, three are Mr. Conant, Mr. Sullivan and Firehouse vice-president Brooke Sours. Of the 175 accounts Mr. Terrill followed, one was Mr. Almond – until he unfollowed him Monday.

Mr. Sullivan, in an April, 2019, podcast, said a possible communications strategy is to “figure out who the opponent is … and let’s just go get 18 bad stories about them.” He added: “Our belief is in modern communications you either throw spears or you catch spears. Catching them is no fun.”

Mr. Brown, contacted by The Globe and Mail, said he wants to know whether Firehouse used those tactics against Canadaland. “Firehouse Strategies is known for exactly the kind of covert attack campaigns that Canadaland was targeted by,” he said. “Why did WE use charitable funds to hire such a firm? WE Charity needs to provide transparency.”

WE Charity has been the focus of controversy lately over a federal government contract it was awarded to administer the Canada Student Service Grant. Prime Minister Justin Trudeau announced the program on April 22, and the government revealed in June that WE would run it. The contract was cancelled on July 3 after conflict-of-interest accusations involving Mr. Trudeau and members of his family, who have a long history with the organization.

Read former WE Charity board chair Michelle Douglas’s opening remarks to the federal finance committee

In her testimony before the House of Commons finance committee Tuesday, Michelle Douglas, the former board chair of WE Charity in Canada, cited the complexity and lack of transparency of WE’s operations as some of the reasons she resigned from the board in March.

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The IRS filing shows that WE also paid consultancy 202 Strategies US$297,570 during the last fiscal year. The Washington-based firm is headed by Stephan Miller, an Israeli-American pollster and political consultant. “The hallmark of our work is the development of political, media and communications strategies, based on deep insights into your voters, consumers or target audiences gathered through polling and focus groups,” the company says on its website.

Officials at 202 did not respond to questions about their work with WE. On its IRS filing, the charity said all the payments were for “consulting services.”

WE also paid David Baum and Associates US$178,283 in consulting fees in the last fiscal year. Mr. Baum, an organizational psychologist, has been a long-time consultant to WE and highlights the charity on his website. “I partner with exceptional organizations and people and make them better. Jane Goodall, Condé Nast, WE, the Philadelphia Flyers, and Life is Good have all counted on me,” his website says. The site also includes an endorsement from Craig Kielburger: “An invaluable mentor over many years. We couldn’t have done it without him.”

IRS filings show that WE paid Mr. Baum’s firm $644,029 from 2016 to 2019. He has been an adviser to the Kielburgers for more than 15 years. “I stand behind them as people, and WE as an organization, because I have spent thousands of hours with Marc, Craig and their remarkable people,” Mr. Baum writes on his website.

With a report from Jon Horler, special to The Globe and Mail

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Review finds no case for formal probe of Beijing’s activities under elections law

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OTTAWA – The federal agency that investigates election infractions found insufficient evidence to support suggestions Beijing wielded undue influence against the Conservatives in the Vancouver area during the 2021 general election.

The Commissioner of Canada Elections’ recently completed review of the lingering issue was tabled Tuesday at a federal inquiry into foreign interference.

The review focused on the unsuccessful campaign of Conservative candidate Kenny Chiu in the riding of Steveston-Richmond East and the party’s larger efforts in the Vancouver area.

It says the evidence uncovered did not trigger the threshold to initiate a formal investigation under the Canada Elections Act.

Investigators therefore recommended that the review be concluded.

A summary of the review results was shared with the Canadian Security Intelligence Service and the RCMP. The review says both agencies indicated the election commissioner’s findings were consistent with their own understanding of the situation.

During the exercise, the commissioner’s investigators met with Chinese Canadian residents of Chiu’s riding and surrounding ones.

They were told of an extensive network of Chinese Canadian associations, businesses and media organizations that offers the diaspora a lifestyle that mirrors that of China in many ways.

“Further, this diaspora has continuing and extensive commercial, social and familial relations with China,” the review says.

Some interviewees reported that this “has created aspects of a parallel society involving many Chinese Canadians in the Lower Mainland area, which includes concerted support, direction and control by individuals from or involved with China’s Vancouver consulate and the United Front Work Department (UFWD) in China.”

Investigators were also made aware of members of three Chinese Canadian associations, as well as others, who were alleged to have used their positions to influence the choice of Chinese Canadian voters during the 2021 election in a direction favourable to the interests of Beijing, the review says.

These efforts were sparked by elements of the Conservative party’s election platform and by actions and statements by Chiu “that were leveraged to bolster claims that both the platform and Chiu were anti-China and were encouraging anti-Chinese discrimination and racism.”

These messages were amplified through repetition in social media, chat groups and posts, as well as in Chinese in online, print and radio media throughout the Vancouver area.

Upon examination, the messages “were found to not be in contravention” of the Canada Elections Act, says the review, citing the Supreme Court of Canada’s position that the concept of uninhibited speech permeates all truly democratic societies and institutions.

The review says the effectiveness of the anti-Conservative, anti-Chiu campaigns was enhanced by circumstances “unique to the Chinese diaspora and the assertive nature of Chinese government interests.”

It notes the election was prefaced by statements from China’s ambassador to Canada and the Vancouver consul general as well as articles published or broadcast in Beijing-controlled Chinese Canadian media entities.

“According to Chinese Canadian interview subjects, this invoked a widespread fear amongst electors, described as a fear of retributive measures from Chinese authorities should a (Conservative) government be elected.”

This included the possibility that Chinese authorities could interfere with travel to and from China, as well as measures being taken against family members or business interests in China, the review says.

“Several Chinese Canadian interview subjects were of the view that Chinese authorities could exercise such retributive measures, and that this fear was most acute with Chinese Canadian electors from mainland China. One said ‘everybody understands’ the need to only say nice things about China.”

However, no interview subject was willing to name electors who were directly affected by the anti-Tory campaign, nor community leaders who claimed to speak on a voter’s behalf.

Several weeks of public inquiry hearings will focus on the capacity of federal agencies to detect, deter and counter foreign meddling.

In other testimony Tuesday, Conservative MP Garnett Genuis told the inquiry that parliamentarians who were targeted by Chinese hackers could have taken immediate protective steps if they had been informed sooner.

It emerged earlier this year that in 2021 some MPs and senators faced cyberattacks from the hackers because of their involvement with the Inter-Parliamentary Alliance on China, which pushes for accountability from Beijing.

In 2022, U.S. authorities apparently informed the Canadian government of the attacks, and it in turn advised parliamentary IT officials — but not individual MPs.

Genuis, a Canadian co-chair of the inter-parliamentary alliance, told the inquiry Tuesday that it remains mysterious to him why he wasn’t informed about the attacks sooner.

Liberal MP John McKay, also a Canadian co-chair of the alliance, said there should be a clear protocol for advising parliamentarians of cyberthreats.

This report by The Canadian Press was first published Sept. 17, 2024.

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NDP beat Conservatives in federal byelection in Winnipeg

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WINNIPEG – The federal New Democrats have kept a longtime stronghold in the Elmwood-Transcona riding in Winnipeg.

The NDP’s Leila Dance won a close battle over Conservative candidate Colin Reynolds, and says the community has spoken in favour of priorities such as health care and the cost of living.

Elmwood-Transcona has elected a New Democrat in every election except one since the riding was formed in 1988.

The seat became open after three-term member of Parliament Daniel Blaikie resigned in March to take a job with the Manitoba government.

A political analyst the NDP is likely relieved to have kept the seat in what has been one of their strongest urban areas.

Christopher Adams, an adjunct professor of political studies at the University of Manitoba, says NDP Leader Jagmeet Singh worked hard to keep the seat in a tight race.

“He made a number of visits to Winnipeg, so if they had lost this riding it would have been disastrous for the NDP,” Adams said.

The strong Conservative showing should put wind in that party’s sails, Adams added, as their percentage of the popular vote in Elmwood-Transcona jumped sharply from the 2021 election.

“Even though the Conservatives lost this (byelection), they should walk away from it feeling pretty good.”

Dance told reporters Monday night she wants to focus on issues such as the cost of living while working in Ottawa.

“We used to be able to buy a cart of groceries for a hundred dollars and now it’s two small bags. That is something that will affect everyone in this riding,” Dance said.

Liberal candidate Ian MacIntyre placed a distant third,

This report by The Canadian Press was first published Sept. 16, 2024

The Canadian Press. All rights reserved.

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Trudeau says ‘all sorts of reflections’ for Liberals after loss of second stronghold

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OTTAWA – Prime Minister Justin Trudeau say the Liberals have “all sorts of reflections” to make after losing a second stronghold in a byelection in Montreal Monday night.

His comments come as the Liberal cabinet gathers for its first regularly scheduled meeting of the fall sitting of Parliament, which began Monday.

Trudeau’s Liberals were hopeful they could retain the Montreal riding of LaSalle—Émard—Verdun, but those hopes were dashed after the Bloc Québécois won it in an extremely tight three-way race with the NDP.

Louis-Philippe Sauvé, an administrator at the Institute for Research in Contemporary Economics, beat Liberal candidate Laura Palestini by less than 250 votes. The NDP finished about 600 votes back of the winner.

It is the second time in three months that Trudeau’s party lost a stronghold in a byelection. In June, the Conservatives defeated the Liberals narrowly in Toronto-St. Paul’s.

The Liberals won every seat in Toronto and almost every seat on the Island of Montreal in the last election, and losing a seat in both places has laid bare just how low the party has fallen in the polls.

“Obviously, it would have been nicer to be able to win and hold (the Montreal riding), but there’s more work to do and we’re going to stay focused on doing it,” Trudeau told reporters ahead of this morning’s cabinet meeting.

When asked what went wrong for his party, Trudeau responded “I think there’s all sorts of reflections to take on that.”

In French, he would not say if this result puts his leadership in question, instead saying his team has lots of work to do.

Bloc leader Yves-François Blanchet will hold a press conference this morning, but has already said the results are significant for his party.

“The victory is historic and all of Quebec will speak with a stronger voice in Ottawa,” Blanchet wrote on X, shortly after the winner was declared.

NDP Leader Jagmeet Singh and his party had hoped to ride to a win in Montreal on the popularity of their candidate, city councillor Craig Sauvé, and use it to further their goal of replacing the Liberals as the chief alternative to the Conservatives.

The NDP did hold on to a seat in Winnipeg in a tight race with the Conservatives, but the results in Elmwood-Transcona Monday were far tighter than in the last several elections. NDP candidate Leila Dance defeated Conservative Colin Reynolds by about 1,200 votes.

Singh called it a “big victory.”

“Our movement is growing — and we’re going to keep working for Canadians and building that movement to stop Conservative cuts before they start,” he said on social media.

“Big corporations have had their governments. It’s the people’s time.”

New Democrats recently pulled out of their political pact with the government in a bid to distance themselves from the Liberals, making the prospects of a snap election far more likely.

Trudeau attempted to calm his caucus at their fall retreat in Nanaimo, B.C, last week, and brought former Bank of Canada governor Mark Carney on as an economic adviser in a bid to shore up some credibility with voters.

The latest byelection loss will put more pressure on him as leader, with many polls suggesting voter anger is more directed at Trudeau himself than at Liberal policies.

This report by The Canadian Press was first published Sept. 17, 2024.

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