Thursday, September 06, 2007

Asset stripping - R - US

Selling Canadian property (read, property of Canadian citizens) for less than its true value and leasing it back, ensuring that the buyers will live off Canadian taxpayers for at least 25 years. The only way we get it back is if the deal is bad for us.

Protecting Canadian interests. Yeah, right!

From the Harper Index:
Privatizing federal buildings a "sweet deal" for new owners
...[T]he nine federal properties in different parts of Canada were sold to Larco Investments for $630 million less than assessed market value, according to the National Union of Public and Government Employees (NUPGE). Larco is a Vancouver- based company whose holdings include hotel and casino interests in Las Vegas.

...[I]n total, the Conservatives plan to sell off some 40 federal properties, carrying out an exercise started but not completed by the Martin Liberals.

...[S]enator and public works minister Michael Fortier said, in a statement that it was "a fair deal for taxpayers" because the $1.64 billion sale price was $400 million higher than the assessed value of the properties.

...[C]ontrary to government claims, the buildings were assessed independently by Informetrica at $2.3 billion, meaning that they were sold off at $630 million less than their fair market value," said Patty Ducharme of the Public Service Alliance of Canada (PSAC).

...[T]his is a give-away of colossal proportion," said Ducharme. "In addition to ceding ownership of nine premium properties, the federal government has, in effect, written a $630 million cheque signed by Canadian taxpayers."

...[T]his a sweet deal for the new owners and a lemon for taxpayers. It's a 25-year guarantee of steady profits. Taxpayers will pay extra operating and maintenance costs, and the federal government will be able to buy back the buildings only if taxpayers do not benefit financially," Ducharme said.

Also, this report from the National Union of Public and General Employees (NUPGE).

No comments:

Post a Comment