Manitoba Public Insurance’s board of directors voted unanimously to oust former chief executive officer Eric Herbelin from the Crown corporation after reviewing the findings of an internal investigation into his conduct.
On Tuesday, MPI board chair Ward Keith said he makes no apologies for calling an emergency meeting of the auto insurer’s governance committee over the long weekend.
The board voted to dismiss Herbelin with cause Sunday and his departure was announced that afternoon. MPI chief operating officer Marnie Kacher was appointed interim CEO.
“As chair of the board, I was not prepared to delay taking action until after the long weekend,” Keith said in an interview. “The board took what I believe to be the necessary and appropriate action and in as timely a manner as possible, considering the necessary due process.”
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MPI board chair Ward Keith says he makes no apologies for calling an emergency meeting of the auto insurer’s governance committee over the long weekend.
The investigation concerned Herbelin’s “work-related conduct,” Keith said. He declined to discuss the scope of the review or its findings, citing privacy concerns.
“After considering several factors, the board determined the relationship should be terminated and Mr. Herbelin was dismissed with cause,” he said.
The investigation was ordered by former MPI board chair Michael Sullivan prior to his resignation earlier this month, Keith explained.
A lawyer external to MPI was hired to conduct the review and the results were submitted last week and Keith said he was notified a few days later. Once informed of the results, Keith called the emergency board meeting, which requires 72 hours notice.
Herbelin took the top job at MPI in early 2021 with a resumé boasting 30 years of experience in the insurance business. The Swiss national held a series of management and executive roles prior to working at MPI, including as president of Elips Life Insurance, a Chicago-based subsidiary of a Swiss company.
He joined the publicly owned auto insurer during the COVID-19 pandemic and as MPI was already pursuing the largest technology modernization effort in its history, known as Project Nova.
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The MPI board voted to dismiss Eric Herbelin as CEO with cause Sunday and his departure was announced that afternoon.
Under Herbelin’s tenure, the project’s price tag ballooned from $100 million to $290 million, with Herbelin and the corporation blaming delays and cost overruns on incomplete advice from consultants hired to prepare the initial business case.
The hired help left out a number of expenses and overestimated MPI’s ability to deliver the changes necessary to move basic customer services online under the initial timeline, Herbelin told a legislative committee in December 2022.
One month later, the corporation was rapped by the Public Utilities Board, which ordered a closer look at MPI’s spending on Project Nova, citing concerns it had lost control of the $290 million budget.
In its decision to approve a 1.54 per cent rate increase for the average driver in 2023-24, the PUB said significant uncertainty remains with Project Nova and it remains concerned expenses will continue to rise.
Meanwhile, it came to light MPI awarded more than $12 million in untendered contracts to consulting firm McKinsey and Co. to help with the rollout of Project Nova. The revelation sparked a ministerial directive issued in February requiring the corporation to competitively source goods and services.
“The board took what I believe to be the necessary and appropriate action and in as timely a manner as possible, considering the necessary due process.”–MPI board chair Ward Keith
A second ministerial directive was issued in April ordering an external organization review of MPI to confirm whether MPI’s financial projections are sound, its hiring plans are good value for ratepayers and that the executive structure is appropriate, among other items. A report is expected by the end of the year.
And earlier this month, the Free Press reported Herbelin received a three per cent pay bump last year and spent 38 business days travelling despite Project Nova cost overruns and the PUB’s concerns.
Sullivan resigned as board chair shortly after.
On Tuesday, Keith declined to discuss board decisions made prior to his appointment and would not comment on raises or travel expenses provided to the former chief executive officer.
“Moving forward, having appointed Ms. Kacher as the interim president and CEO, I am really confident in her experience and her knowledge, and I also know that she’s well-respected not just within the company, but by stakeholders and business partners,” he said.
The leadership team is focused on successfully implementing Project Nova on schedule, preparing its next general rate application and providing good customer service while a search for a new, permanent CEO is underway, he said.
The Free Press was unable to reach Herbelin for comment Tuesday.
Justice Minister Kelvin Goertzen, who is responsible for MPI, said he supports the board’s decision to dismiss Herbelin, though he has not reviewed the findings of the internal investigation.
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Justice Minister Kelvin Goertzen, who is responsible for MPI, said he supports the board’s decision to dismiss Herbelin, though he has not reviewed the findings of the internal investigation.
“It deals with (human resource) matters and it’s not something I should be privy to see,” Goertzen said.
The Steinbach MLA said he is confident in the current MPI board and its chair.
NDP critic Matt Wiebe alleged Herbelin’s dismissal was a “political move” and the government should have acted sooner to address concerns at MPI.
“The issues that were identified with Project Nova should have been a major red flag for this government and it should have prompted them to act immediately to get control of the situation,” Wiebe said. “Instead of doing that, the government sat on its hands, refused to acknowledge the issues and, now, in a desperate attempt in an election year to distract or move past this issue… the minister wanted to make this change.”
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
