Canada’s Biggest Scandal?

(Paul’s Note: This article was submitted by the author as a direct result of my “Calling All Whistle Blowers”. This is what happens when Fascists in High-level Government conspire against the marketplace. They have done everything to destroy this whistleblower, who will tell his story on my Monday Radio Program 12 PM Eastern. The show is recorded so, to listen, click on the LINK)

For decades, political and business insiders, with Canadian and British Columbian governments, have known that the water resources in the American southwest and Mexico were dwindling in the face of an increasing population. A small group of Canadian political insiders saw the opportunity to earn massive profits for themselves from the export of Canada’s fresh water and set about on a fraudulent and corrupt scheme to capture for themselves an illegal water export monopoly so they could line their pockets with revenues from the sale of Canadian public assests and gouge American consumers.

In the process these corrupt political insiders in Canada violated the Free Trade Agreement, the NAFTA, the domestic laws of Canada and tried to rig or fix the outcome of a public tender process that took place in California where the small community of Goleta was looking for alternate water sources in the midst of the most severe drought in its history.

In British Columbia, in the 1980’s, public opinion and political opinion favored the development of a water export industry from coastal streams and rivers. There was ample water and, as long as fish stocks were protected, there was no apparent environmental or other concern with extracting a moderate amount of water from the abundance or water resources that flowed into the ocean annually. The Government of British Columbia estimated that about 400 million acre feet of water flows annually into the Pacific Ocean from the coast of British Columbia. This estimate excludes the Fraser river and rivers or streams flowing south, east and north.

In short, the quantities of water and sources of water available for export in British Columbia are so huge and so varied that they far outstrip any conceivable demand. These issues of supply and demand presented a practical business problem because free market competition would invariably lower prices and, therefore, lower profits.

The solution was a monopoly.

Monopolies are highly sensitive political issues. Typically, governments and the public resist monopolies because they know that the business people involved will gouge them with higher and ever higher prices.

So, the investors behind the bulk water export business hatched a bold and devious two step plan:

1. Obtain a source of abundant water for export from the British Columbia Government.

2. Use the environmental movement and the public media in Canada to persuade policy makers in the Governments of Canada and British Columbia to impose a ban on their competition.

The investors went to work, set up a company called W.C.W. Western Canada Water Enterprises Ltd., persuaded the British Columbia government to give it a source of water. Then they hired public relations firms and environmentalists to induce the fear in the general public that by permitting water exports Canada woud be drained dry and that the only solution was a ban or moratorium on bulk water exports. The scare mongering began. Canadians were told that fresh water was Canada’s most precious resource, that glaciers were melting, that lakes and rivers were drying up, that Canada could not risk selling any water to the USA and that the only solution was a prohibition on bulk water exports. Of course, the prohibition would not affect rights already acquired and WCW would then have a monopoly.

The plan was so brilliant that, to this very day, many Canadians actually believe that water or snow is Canada’s most precious resource when, in market terms, water is next to worthless – in most parts of Canada.

The plan was so brilliant that, to this very day, many Canadians believe that water comes from glaciers lakes and rivers when, in truth, it originates in the ocean.

That plan was so brilliant that, to this very day, most Canadians believe that water is a non-renewable resource like oil and that every drop of water exported is gone forever when, in fact, it pretty well returns every year in the form of snow and rain.

The plan was so brilliant that, to this very day, most Canadians believe that the creation of a few pipelines or aqueducts to deliver water to the United Sates and Mexico will forever destroy Canada’s environment.

The plan was brilliant, it was devious, and it would have been hugely profitable and, incidentally, tax free for many of the insiders who held their interests offshore.

The political and business insiders in Canada had selected their vehicle to make fabulous proifits, W.C.W. Western Canada Water Enterprises Ltd., but they had two viable competitors that needed to be destroyed. These were the joint venture project of two small companies, one American, Sun Belt Water Inc. based in Santa Barbara, California, and one Canadian, Snowcap Waters Ltd. based in Fanny Bay, B.C., and the small Vancouver based company, Aquasource Ltd.

As an ally of W.C.W. Western Canada Water Enterprises Ltd., that had bribed the governing political Social Credit Party with political donations, the British Columbia Government under the leadership of Bill Vander Zalm threw a multitude of regulatory hurdles in the path of the competitors that slowed them down but did not completely kill them so, eventually the Government used brute force to destroy the competition to W.C.W. Western Canada Water Enterprise Ltd. and broke the Canada US Free Trade Aggeement, the GATT and the Water Act and imposed the illegal moratorium on bulk water exports that denied all competitors the ability to get an bulk water export licence

Despite its brilliance the plans by the insiders did not work and they did not work for THREE fundamental reasons,

First, the plans were illegal. The plans were illegal because they violated the Water Act, a domestic law of the Province of British Columbia, they violated the Free Trade Agreement, an international trade treaty between Canada and the USA that was approved by the Province of British Columbia and binding on the Province, and they violated the General Agreement on Trade and Tariffs, an agreement that British Columbia and Canada were required to follow.

Because the plan was illegal, it was a well guarded secret and the Canadian public have been left with an incomplete understanding of the fraud that was foisted upon them while the nation was left with an ill-conceived and ill-thought out bulk water export policy that originated as part of a fraudulent conspiracy.

Secondly, WCW Western Canada Water Enterprises Ltd. were greedy and attempted to gouge the first US customer, the Goleta Water District, by pricing its water at 50% more than the American competitor, Sun Belt Water Inc.

In March 1991, the Goleta Water District selected Sun Belt Water Inc., after an open public competitive process, to supply approximately 7,500 acre feet of per year. The competing bid of W.C.W. Western Canada Water Enterprises Ltd. was rejected because of grossly over inflated pricing. Sun Belt Water Inc. and its Canadian partner, Snowcap Waters Ltd., were poised to become the first players in the emerging bulk water export import business.

Third, when the politicians and insiders in Canada saw that their plans had gone sideways, they went crazy, broke the Canada US Free Trade Agreement and announced that Sun Belt Water Ltd. would not be permitted to have access to fresh water from Canada and that only WCW could supply the water Goleta wanted.

The Government of British Columbia moved quickly and imposed its first moratorium, a moratorium it knew was illegal, on bulk water exports in order to prevent Sun Belt from getting water for export thereby attempting to force the Americans to do business with WCW at exorbitant prices in order to line the pockets of their friends.

With no fresh water to serve its customers, the Sun Belt venture, a small business, collapsed. Goleta refused to do business with WCW and WCW carried on for a few more years before collapsing into bankruptcy although it had raised over $100 million to finance its business

A few years later, Sun Belt Water Inc. retained a lawyer in Canada who started to move a claim forward in the Canada’s courts that would expose the criminals. The insiders moved quickly, manipulated the Canadian judiciary and shut down the Sun Belt case in Canada’s courts and financially and professionally destroyed the Sun Belt lawyer.

Having committed no crimes, the lawyer was jailed twice by the Governments of Canada and British Columbia, his business was destroyed by Government actions, he is effectively barred from practising law in British Columbia, where he successfully practised for 22 years from 1977 to 1999.

Governments in Canada have slandered and libelled his reputation. He is prevented from filing legal claims on his own behalf in the British Columbia courts. When summoned to court, in British Columbia, he is prevented from calling witnesses and denied the right to present evidence. Judges in British Columbia have fixed cases against him and his clients in order to undermine his economic survival.

In addition, Governments in Canada attached the woman who gave him some assistance. A mother of five children, a legal secretary and a nurse. She has been followed, spied on, her telephones have been monitored, her assets stolen by Canadian government agents. She and her young family were traumatized and thrown into chaos by the deliberate attacks of agents of the Governments of Canada and British Columbia acting through Canada’s politically controlled court system.

The lady and the lawyer went underground, dug up the dirt on their enemies and now nine of the judges who collaborated with the Canadian government and mis-used their powers on the bench are dead. Scores of crooked civil servants have been exposed as criminals and lost their jobs and three Governments that attacked them have been undermined and thrown out of power.

This is their story, and it is told here and on their blog.