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Pulp giant Paper Excellence’s secretive owner could face parliamentary summons

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The secretive owner of Canada’s largest wood pulp manufacturer could soon face a summons to appear before a parliamentary committee after he sent company executives in his stead to testify Tuesday.

New Democratic Party Natural Resources Critic Charlie Angus served notice Tuesday he will ask the Natural Resources committee to issue a summons to force Paper Excellence owner Jackson Wijaya to appear before the committee to answer questions about who owns the company and its complicated network of holding companies.

“What kind of message is he sending to Canadians if he’s at a headquarters in Shanghai or in Jakarta and he refuses to respond,” Angus said on his way out of the committee. “These are our forests, these are our workers, these are our communities. If this individual is in control of all of this, he should be able to come and give us pretty straightforward answers.”

Angus’s motion calls on Wijaya to testify before June 20. However, if the committee agrees to issue the summons, it can only be executed if Wijaya sets foot in Canada.

John Williams, chair of the Paper Excellent Group, who testified before the committee Tuesday, wouldn’t comment on the motion. Williams, who told the committee that he had no idea where Wijaya was, said on his way out of the committee meeting that he last saw Wijaya “a few weeks ago” in the United States.

“He’s a Hong Kong resident, he has a house in Shanghai and he has a house in Newport Beach, California,” Williams told CBC News.

Softwood chips are collected for making newspaper at Resolute Forest Products in Gatineau, Que., in 2018. The Quebec-based company was recently purchased by Paper Excellence. (Christinne Muschi/Reuters)

Conservative Natural Resources Critic Shannon Stubbs said she wants to force Industry Minister François-Philippe Champagne to testify about his decision to allow Paper Excellence to recently acquire Resolute Forest Products. The committee adopted Bloc Québécois MP Mario Simard’s motion for Wijaya to lift the confidentiality surrounding talks the company had with Champagne and the assurances it made.

Asked during the committee hearing, Williams said he did not know the details of those discussions.

CBC’s investigation

Tuesday’s committee hearing, with testimony from four Paper Excellence executives based in Canada, came in the wake of an investigation into Paper Excellence by CBC News in conjunction with other media outlets — part of a wider look at the global forestry industry under the umbrella of the International Consortium of Investigative Journalists (ICIJ).

The investigation found that the people behind or associated with Paper Excellence appear to have a pattern of using thickets of corporations, including tax havens, effectively shielding transactions and assets from public and government scrutiny.

The company won’t open up about its past financing, some of which was facilitated at one point by a $1.25 billion US demand debenture with the China Development Bank. The bank is owned by the Chinese government.

CBC’s investigation also found leaked records and insider accounts that show that Paper Excellence, at least until a few years ago, appears to have been closely — and secretly — co-ordinating business and strategy decisions with Asia Pulp & Paper, one of the world’s biggest pulp-and-paper players, which environmental groups have complained has a track record of environmental destruction.

The company maintains that Paper Excellence is completely independent from Asia Pulp & Paper and is owned solely by Jackson Wijaya. Wijaya is a member of the family that owns Asia Pulp & Paper and Indonesian giant Sinar Mas.

With its recent acquisition of Resolute Forest Products, Paper Excellence is now Canada’s largest producer of wood pulp and manages nearly 22 million hectares of Canadian forests.

‘Really concerning’

Tuesday, Paper Excellence executives moved to reassure MPs that the company considers wood pulp a promising industry and that Wijaya didn’t have any hidden agendas.

Asked about the company’s complicated structure, Williams said it consisted of a series of holding companies for tax reasons, something he said was not unusual with international companies. He assured the committee that all of those companies track back to Wijaya. While the executives acknowledged that Wijaya’s family helped him at the outset, they insisted that Paper Excellence is not acting as a front for Asia Pulp and Paper or Sinar Mas to grab Canadian wood fibre.

However, Williams and Jean-François Guillot, chief operating officer of three Paper Excellence subsidiaries, shed little light on the financing the company received from the China Development Bank, saying that the $1.25 billlion US demand debenture was paid off in 2020 and the company no longer has any outstanding loans with the bank.

The executives got a warm reception from Conservative MPs Gary Vidal and Randy Hoback, who outlined how the company has brought jobs and investment to Saskatchewan.

However, the testimony left Angus with unanswered questions.

“I find this really concerning,” Angus said after the hearing. “We couldn’t get straight answers as to where Mr. Wijaya is headquartered, what his connections (are) to Asia Pulp and Paper. We got obscure responses on the connections to Sinar Mas.”

Jackson Wijaya, right, is seen with Brazilian politician Eduardo Bolsonaro in this image sent out via Twitter on July 30, 2019. (BolsonaroSP/Twitter)

The committee also heard from Greenpeace campaigner Shane Moffatt about an investigation into the company by environmental groups, and from Christian Leuprecht, a professor with the Royal Military College of Canada, who outlined his concerns about Paper Excellence.

“My overall concern here is to assure a level and competitive playing field for foreign direct investment in Canada and that the investment we see here may not meet that test,” Leuprecht told MPs. “It appears that Paper Excellence may have been and may still be in violation of Canadian law by effectively circumventing Canadian law and that may also be the reason why Paper Excellence continues to be intransparent or not forthcoming either about its foreign resourcing or about its ownership structure.”

“I’m concerned about the structures behind the company but I’m also concerned about the pace with which it has acquired a significant share of a Canadian business,” Leuprecht said, adding if the same questions about ownership and financing swirled around a company in another industry like telecommunications “Canadians would be up in arms.”

The committee resumes its hearings into Paper Excellence Friday, with officials from the industry, natural resources and public safety departments scheduled to testify.

 

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Police watchdog investigating after bodies of mother, son found in Montreal vehicle

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MONTREAL – Quebec’s police watchdog says it has opened an investigation after the bodies of a mother and her son, both of whom went missing earlier this week, were discovered in a vehicle in Montreal.

Montreal police confirmed Thursday that the bodies of Lucia Giovanna Arcuri, 76, and Giuseppe Arcuri, 59, were found earlier in the day in an Infiniti SUV belonging to the man. They had been reported missing on Tuesday.

Since Montreal police were looking into their disappearance, the province’s police watchdog — Bureau des enquêtes indépendantes — has opened a file into how police conducted their investigation. The watchdog is mandated to investigate cases in which people die or are injured during interventions by Quebec police.

Montreal Const. Véronique Dubuc says the watchdog will investigate the work of city police, and provincial police will investigate the two deaths.

First responders were called at around 12:30 a.m. on Thursday to the vehicle in a parking lot. Despite attempts to revive the two people inside, both were pronounced dead at the scene, and Montreal police have described the deaths as suspicious.

Arcuri and his mother lived together in the city’s St-Leonard borough.

Giuseppe Arcuri was last seen Tuesday at around 9:30 a.m. in a restaurant in eastern Montreal. “Mr. Arcuri made disturbing comments before his disappearance,” police said in a bulletin announcing their disappearance.

The last contact with Lucia Giovanna Arcuri was also Tuesday morning. She was suffering from memory loss and rarely left her home. She disappeared without her medication or the cane she needs to walk.

Later, police put out a description of Giuseppe Arcuri’s SUV, which matched the vehicle in which the two bodies were found Thursday.

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

The Canadian Press. All rights reserved.



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What to know about red tide after Florida’s back-to-back hurricanes

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TALLAHASSEE, Fla. (AP) — Residents of Florida’s Gulf Coast who weathered back-to-back hurricanes now have something else to keep an eye on -– a possible plume of harmful algae in the waters off the state’s southwest coast.

Satellite imagery shows a bloom of algae extending along Florida’s western coastline near Tampa, though researchers caution that Hurricanes Helene and Milton have delayed regular sampling to confirm the findings. Federal officials say there is currently “no risk of respiratory irritation” from red tide in Florida.

Red tides occur when algae — plant-like organisms that live in salt and freshwater — grow out of control and produce harmful toxins that can kill fish and sicken people and pets.

“It’s so dense that it actually discolors the water, right? Hence the red tide name,” said Beth Stauffer, a professor of biology at the University of Louisiana at Lafayette.

According to researchers, the main species responsible for the blooms along Florida’s Gulf Coast is Karenia brevis, a single-celled organism that produces a potent neurotoxin that can be suspended in the air near beaches and make people sick when they breathe it in.

“(It) not only impacts some of the fish and manatees and some of the other marine mammals, but can impact human health through the toxin being aerosolized and hurting folks who have respiratory or autoimmune issues,” Stauffer said.

Scientists say Florida’s back-to-back hits from Hurricanes Helene and Milton could be fueling the growth of toxic algae that was already present before the storms slammed the coast.

Here’s what to know about red tide — and how hurricanes could affect it.

What is red tide?

Red tides, which scientists refer to as harmful algae blooms, occur when aquatic microorganisms grow out of control, producing toxins that can kill fish, make shellfish unsafe to eat and leave the air difficult to breathe.

Many different kinds of microorganisms cause toxic blooms in fresh and saltwater around the world, but researchers say the culprit behind southwest Florida’s cyclical blooms is a species known as Karenia brevis.

Florida typically sees red tide off the state’s southwest coast every year in late summer or early fall when warmer temperatures and wind conditions are more favorable to algae growth.

Hurricanes don’t cause red tide – but they can make it worse

Experts say there are a lot of factors that can influence a harmful algae bloom, from the availability of nutrients to wind conditions to the powerful underwater currents that help power the ocean’s food chains.

While the researchers who spoke with The Associated Press didn’t agree on whether hurricanes can disrupt a harmful algae bloom, they did say that these powerful storms can make them worse by churning up nutrient-rich water that fuels the growth of the microorganisms.

“Hurricanes do bring up deeper water in the Gulf of Mexico, which has more nutrients. They also could produce a lot of rain. You have runoff from the land, which also adds nutrients,” said Richard Stumpf, an oceanographer with the National Oceanic and Atmospheric Administration. “It tends to intensify a bloom that’s already there.”

Hurricanes can also steer blooms ashore, even pushing them hundreds of miles up the coast, according to Stumpf.

“We saw an extreme case with Katrina, which of course didn’t really affect Florida, but it was such a big storm, it actually took a bloom that was off southwest Florida and put it on the Panhandle,” he said.

What are the health concerns?

Harmful algae blooms can pose a deadly threat to aquatic animals, with some causing massive die-offs that choke beaches with rotting fish. People who breathe in the toxins may experience symptoms like coughing, shortness of breath or dizziness.

“It’s like an instant cold. Go down to the beach, start coughing just as you cross over the dune and then eyes start watering and nose running,” Stumpf said.

“Once I leave and 10 minutes later, I’m fine,” he said. “It’s so odd.”

Those with asthma or other respiratory issues may experience more serious health effects or even need medical attention. Some pets that have come into contact with harmful algae have become seriously ill or even died.

What are conditions like now?

According to a red tide monitoring map maintained by the Florida Fish and Wildlife Conservation Commission, medium and high levels of Karenia brevis concentrations were detected in some coastal locations near Pinellas County, home to St. Petersburg, between Sept. 26 and Oct. 3 – just as Hurricane Helene crashed ashore in the Big Bend region and in the week that followed.

A NOAA forecasting tool shows there is currently “no risk of respiratory irritation” from red tide algae in Florida.

Researchers say that some efforts to gather and analyze data have been delayed due to the storms.

“It looks like the hurricane actually helped facilitate what is an evolving red tide bloom along the coastline,” said Robert Weisberg, an emeritus professor of physical oceanography at the University of South Florida. “The caveat is we have not gone out to sample it yet so we don’t know exactly what’s out there.”

___ Kate Payne is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.



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Long-promised flood-prevention project in Manitoba under review with no timeline

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WINNIPEG – A long-promised $600-million flood prevention project in Manitoba is now under review, and the provincial government has opened the door to redesigning it with no timeline for starting construction.

The NDP government said it has asked Ottawa to pause a decision on the plan, in order to fully consult First Nations and consider possible alternatives to the design. It would currently have two large outlet channels built to drain water from Lake Manitoba into Lake St. Martin then into Lake Winnipeg.

“The federal government had already expressed significant concerns,” Lisa Naylor, Manitoba’s minister of transportation and infrastructure, said Thursday.

“If the federal government had withdrawn the licence because of the environmental impact, the project would be dead. And so, I don’t want to see that happen.”

The project has been talked about for more than a decade, following severe flooding in 2011 that forced thousands of people from their homes.

The former Progressive Conservative government promised in 2016 to build the project quickly but butted heads for years with federal regulators, who called for more consultation with First Nations that would be affected.

In 2022, a Court of Queen’s Bench judge ruled the government did not consult properly before setting up a right of way on Crown land for preparatory work, such as groundwater monitoring.

A report in June from the federal Impact Assessment Agency said the project’s environmental effects could be addressed, but it would have significant impact on Indigenous land use. The federal environment minister said he would refer the issue to cabinet for a decision.

Seeking a pause on that process will give the province time to address concerns of First Nations communities and Ottawa, Naylor said.

The Tories, now in Opposition, said there was consultation and the project needs to move ahead to prevent another disastrous flood in the region.

“I think there were hundreds and hundreds of consultations that have been done with First Nations,” interim party leader Wayne Ewasko said. Technical documents, including papers translated into Cree and Ojibway, were posted online and shared with community members, he added.

Naylor said the pause will also let the government consider changing the project’s design.

“A number of smaller mitigation projects have taken place over the years that may change what the outcome ultimately needs to look like,” she said.

The province is signing a memorandum of understanding on next steps with the Interlake Reserves Tribal Council, which represents several communities in the region.

Cornell McLean, chief of Lake Manitoba First Nation, said he’s pleased with the government’s commitment because there has been no meaningful consultation to date.

“There has been none, and they say there were text messages, phone calls, faxes. And I said, ‘Well, that’s not consultation,'” McLean said.

“If you want to have true consultation, it’s face-to-face, meaningful consultation.”

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

The Canadian Press. All rights reserved.



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