Edward Johnson, chair of the Trudeau Foundation (TF), testified on Thursday that he had no knowledge that part of the charity's $125 million funding from taxpayers was used to buy shares in Chinese companies. .According to Blacklock’s Reporter, Johnson only found out when a board member raised concerns about the stock purchases..“We told our financial managers to get rid of them,” Johnson testified at the Commons Public Accounts committee. .“Normally, we don’t really know what’s part of the portfolio.”.In 2002, the federal government provided the TF with a $125 million endowment funded by taxpayers. .Johnson stated that even as recently as two years ago, the TF held stocks in China, despite having ethical investment policies to prevent those types of investments..“We have policies, including environmental policies, social policies and governance policies and we describe the policies to our managers,” said Johnson. .“We invest in companies that conform with these policies and we meet with our managers to make sure they are compliant.”.One of the directors of the TF revealed that the share purchases included an undisclosed amount invested in Tencent Holdings Limited, a video game maker based in Shenzhen, and Baidu, a Chinese search engine and software company. However, Johnson said he had no knowledge of these purchases..“Did the Foundation invest part of its capital in Chinese companies?” asked Bloc Quebecois MP Nathalie Sinclair-Desgagne (Terrebonne, QC). .“Yes, in fact, we had two investments,” replied Johnson..“Since that time, according to my information, we sold those investments,” said Johnson. .“It was two years ago.”.“You knew that and thought it was normal?” asked MP Sinclair-Desgagne. .“No, we sold them,” replied Johnson. .“We divested ourselves of those investments.”.“But you allowed them to happen?” said MP Sinclair-Desgagne. .“We told our financial managers to get rid of them,” replied Johnson..On June 2, Madeleine Redfern, a Foundation director and former mayor of Iqaluit, testified before the Commons Ethics committee that she raised objections to the share purchases in China..“I definitely had some concerns around the possibility of Chinese investments,” testified Redfern..“One was Tencent and one was Baidu,” said Redfern. .“I did Google them and saw there were some concerns around those companies as it relates to issues regarding privacy, especially of the Chinese people.”.Johnson also testified he was “not aware at the time” that the Foundation in 2016 accepted $140,000 from a Beijing donor affiliated with the Communist Youth League and did not know why the prime minister’s brother Alexandre signed the Chinese donation agreement. .“I am not involved and directors are not involved in the day-to-day operations of the Foundation,” Johnson said on Thursday..Conservative MP Larry Brock (Brantford-Brant, ON) said the donation raised “a series of red flags that someone with your intellect, your business acumen and the fact you are a lawyer and the fact you are chair of the Foundation should have raised.”
Edward Johnson, chair of the Trudeau Foundation (TF), testified on Thursday that he had no knowledge that part of the charity's $125 million funding from taxpayers was used to buy shares in Chinese companies. .According to Blacklock’s Reporter, Johnson only found out when a board member raised concerns about the stock purchases..“We told our financial managers to get rid of them,” Johnson testified at the Commons Public Accounts committee. .“Normally, we don’t really know what’s part of the portfolio.”.In 2002, the federal government provided the TF with a $125 million endowment funded by taxpayers. .Johnson stated that even as recently as two years ago, the TF held stocks in China, despite having ethical investment policies to prevent those types of investments..“We have policies, including environmental policies, social policies and governance policies and we describe the policies to our managers,” said Johnson. .“We invest in companies that conform with these policies and we meet with our managers to make sure they are compliant.”.One of the directors of the TF revealed that the share purchases included an undisclosed amount invested in Tencent Holdings Limited, a video game maker based in Shenzhen, and Baidu, a Chinese search engine and software company. However, Johnson said he had no knowledge of these purchases..“Did the Foundation invest part of its capital in Chinese companies?” asked Bloc Quebecois MP Nathalie Sinclair-Desgagne (Terrebonne, QC). .“Yes, in fact, we had two investments,” replied Johnson..“Since that time, according to my information, we sold those investments,” said Johnson. .“It was two years ago.”.“You knew that and thought it was normal?” asked MP Sinclair-Desgagne. .“No, we sold them,” replied Johnson. .“We divested ourselves of those investments.”.“But you allowed them to happen?” said MP Sinclair-Desgagne. .“We told our financial managers to get rid of them,” replied Johnson..On June 2, Madeleine Redfern, a Foundation director and former mayor of Iqaluit, testified before the Commons Ethics committee that she raised objections to the share purchases in China..“I definitely had some concerns around the possibility of Chinese investments,” testified Redfern..“One was Tencent and one was Baidu,” said Redfern. .“I did Google them and saw there were some concerns around those companies as it relates to issues regarding privacy, especially of the Chinese people.”.Johnson also testified he was “not aware at the time” that the Foundation in 2016 accepted $140,000 from a Beijing donor affiliated with the Communist Youth League and did not know why the prime minister’s brother Alexandre signed the Chinese donation agreement. .“I am not involved and directors are not involved in the day-to-day operations of the Foundation,” Johnson said on Thursday..Conservative MP Larry Brock (Brantford-Brant, ON) said the donation raised “a series of red flags that someone with your intellect, your business acumen and the fact you are a lawyer and the fact you are chair of the Foundation should have raised.”
