Released on February 01, 2013, 1:00 AM EST
Tag #: 651
failure. Who to blame?
based legal firm received $ 717,123.22 pay cheque
also includes airfairs and hotel charges
investigative team uncovered that a Toronto based legal firm which
received an outside legal contract for labour and employment matters
cashed $ 717,123.22 pay cheque from the City from January 2007 to August
Legal support for Labour
and employment matters for the City was contracted out to two legal firms
that qualified and entered in agreement with the City. The estimated cost
of the legal fees for labour and employment matters was $151,865.00
It appeared that the first
Toronto based legal firm cashed almost the full allocated amount which
comes from our tax dollars. However there are no clear records available
on how much the second legal firm cashed for labour and employment matters
for the City.
Evidently, the lawyers of
the Toronto based legal firm did not hesitate to include airfares and
hotel bills when they visited Sudbury, and ultimately, the burden was
passed on to tax payers. It was estimated that airfares and hotel bills
added an additional 30% to their disbursements.
01: Payout for Toronto Legal Firm
Budget Annually: $ 151,865.00
(as of August)
01: Payout to Toronto Legal firm
02: Trend Analysis of Legal Fees Paid to Toronto Legal Firm
It is clear that labour
and employment legal expenses continually rise during this period. This
indicates a serious problem in governance. It seems City
officials have failed to make any substantial
decisions to prevent further escalation of this situation.
The internal grievance
process has four stages, and only at the final stage do matters lead to
mediation or arbitration. WikiLeaks Sudbury has learnt that it is a common
practice with city managers to send employee grievances to mediation or
arbitration. Some of the employees’ grievances can be addressed for less
than $20.00 when resolved between employees within the division.
However it is estimated that over 98% grievances moved to next
stage, and ultimately ended up in mediation or arbitration. It also
appears that a large amount of tax dollars were wasted through-out the
internal conflict resolution process in these years.
The City of Greater
Sudbury has many legal firms which have the professional qualifications to
handle any labour and employment disputes. The labour and employment
matters contracted out will not be beneficial to local professionals and
ultimately the benefit of tax dollars not stay within the local economy.
WikiLeaks Sudbury will not
disclose names of both legal firms to protect third party economic
Request for Proposal out side
legal service for Labour and Employment matters.
Released on February 01,
2013, 1:00 AM EST
original article initially appeared on Journal
of College of Law, Faculty Publications. Paper 27. 01: (01).
Excerpts from the article as follows
Structural Model to Encourage Corporate Whistleblowers
While academic and public
attention has focused almost exclusively on Sarbanes-Oxley's version of
the Anti-retaliation Model: this Article is the first comprehensive
academic work to analyze the ability of Sarbanes-Oxley's Structural Model
to engage corporate employees in the battle to reduce corporate fraud.
Utilizing social science research that analyzes whistleblower motivations,
authour conclude that the Structural Model may produce more effective
disclosures from whistleblowing employees than prior attempts to encourage
whistleblowing because the Model addresses two significant problems that
previously kept employees from consistently functioning as successful
corporate monitors: (1) the corporate norm of silence, and (2) the
corporate tradition of blocking and filtering employee whistleblowing.
Sarbanes-Oxley's Structural Model is an improvement over prior attempts to
encourage whistleblowing because the Act requires a structure that will
encourage whistleblowers and help them effectively provide information
about wrongdoing to corporate officers with the power to address the
misconduct. But, in its current form, Sarbanes-Oxley fails to properly
balance the need for employees to disclose important inside knowledge to
independent directors with the need for directors to efficiently and
effectively monitor all aspects of a corporation's business.
Despite the advantage of
external monitors, however, their external position presents a significant
challenge: monitoring the inner workings of a company from the outside.
External monitors must rely upon information they receive from corporate
executives to fulfill their monitoring Even under the best circumstances,
this information is certain to be incomplete and self-serving due to
information blocking and filtering by executives and subordinate managers.
Under the worst circumstances, corporate executives may &
affirmatively hide or misrepresent information in order to evade a
monitor's oversight. Thus, flow-of-information problems can arise because
these traditional corporate monitors do not have enough information, and
the information that they do have is often distorted and filtered.
These problems contributed
to the failure of traditional monitors to detect the wrongdoing at the
center of recent corporate scandals. Certainly the greed of corporate
executives triggered the massive fraud and traditional corporate
monitors should have been more active in their oversight responsibilities.
Other systemic issues also contributed to this unprecedented failure in
corporate governance, such as internal incentives to inflate stock prices
caused by managerial stock options. There is sufficient blame to go
Corporate employees could
be instrumental in solving the inherent information problems of
traditional external corporate monitors. Employees have an information
advantage over traditional corporate monitors because they have more
complete knowledge regarding the inner workings of a large corporation.
Financial misconduct on the scale that occurred during the recent
corporate scandals necessarily requires the assistance of low- and
mid-level employees because of its scope and complexity.
Additionally, even if an
employee does not participate in the wrongdoing, corporate accounting and
finance employees, who are trained in the proper
methods of conducting business, should recognize when corporate actions
fall outside legal boundaries. In
fact even with few corporate or legal incentives provided to
whistleblowing employees, roughly one-third of fraud and other economic
crimes against businesses are reported by whistle blower. Given their
central role in corporate activity, information from rank-and-file
employees is essential to uncovering wrongdoing in a timely manner.
Accordingly, effectively encouraging employees to disclose their knowledge
of wrongdoing is a critical step in discovering fraud and other corporate
Recent corporate scandals
demonstrated that, despite the efforts of a few employee whistleblowers,
many corporate employees failed to report the misconduct they observed.
Problems with information flow from employees to traditional corporate
monitors undermined the ability of employees to perform any monitoring
Structural Model presents an improved attempt to encourage corporate
employees to overcome these flow-of-information problems. The Model should
lead to more employee whistleblowing because it better corresponds with
employee motivations and reduces the most prominent disincentives to
whistleblowing. Also, the Model will likely improve the effectiveness of
whistleblower disclosures because it encourages reporting directly to
independent corporate directors who have the authority and responsibility
to respond to information about wrongdoing.
Structural Model encourage employees to play an active role in monitoring
corporate behavioral role that not only benefits society by reducing
corporate misconduct, but also improves corporate decision-making by
increasing employee voice within the corporation.
February 01, 2013
Moberly, R. (2006). Sarbanes-Oxley’s
Structural Model to Encourage Corporate Whistleblowers . College of Law, Faculty Publications. Paper 27. 01: (01), 1107-1180.
Structural Model to Encourage Corporate Whistleblowers