Strategic Thoughts

bannerspacerAbout Me | Mail Me | Linksbannerspacer2

May 30, 2007

Political Damage Control of Lotto Cover-Up


The Ombudsman's Report, Winning Fair and Square: A Report on the British Columbia Lottery Corporation's Prize Payout Process, condemns not only the British Columbia Lottery Corporation (BCLC) but also the Gaming Policy and Enforcement Branch (GPEB) of the Ministry of the Solicitor General. Minister John Les responded to questions from the Opposition saying the Ombudsman's recommendations would be implemented and an independent audit of BCLC would be ordered. His response failed to answer who would be held accountable. Anyone reading the Ombudsman's report has to wonder why a second audit would be necessary since that is essentially what the Office of the Ombudsman did. The answer appears to be the pretense of action and something for Les to hide behind when he should be taking Ministerial responsibility and resigning.

The Report says "BCLC is an agent for the government of British Columbia. BCLC must comply with the written directives of the Minister responsible for it and do what he or she requires." The Solicitor General refused to accept responsibility when pressed during question period, saying that it is the role of BCLC's Board of Directors. Perhaps Les didn't read the Report even though he admitted that he received an embargoed copy a day before its official release. If responsibility for BCLC isn't clear enough, he cannot duck responsibility for GPEB which is part of his Ministry. The Report says:

"At the end of this investigation I concluded that:
  • GPEB did not, prior to October 27, 2006, adequately monitor, investigate or otherwise regulate BCLC's lottery prize payout procedures or BCLC's handling of customer complaints about BCLC retailer or BCLC retailer employee fraud.
  • GPEB's November/December 2006 investigation into and report on the integrity of BCLC's lottery ticket retail network was inadequate.
Consequently, I found GPEB's actions relative to regulating BCLC's lottery prize payout procedures were unreasonable as set out in section 23(1)(v) of the Ombudsman Act and its December 2006 investigation into and report on the integrity of BCLC's lottery ticket retail network was inadequate."

The pressure the Campbell government is under to protect "players" from fraud started with the CBC's October 25th, 2006, Fifth Estate program which exposed abuse by retailers in Ontario. The day after the airing of that show, the Vancouver Sun submitted a freedom of information request for record of lottery retailers who won prizes in BC; the government's response amounted to a cover-up. A December 12, 2006, information bulletin posted on the BCLC website claimed it was reasonable for retailers to take home 2.54 per cent of all major prizes because of "the scrutiny we place on all prize claimants, but especially retailers, who come forward to claim prizes. We simply will not pay out a major prize if there is anything irregular about the ticket, or the information provided by the claimant during the interview process at our prize claim offices." The Ombudsman found that claim to be false, and the report provides specific examples of the inaccuracy of that cover-up.

The Ombudsman's investigation into whether procedures BCLC had in place where fair to the public was announced on December 18, 2006, six days after BCLC released its lame excuses. If the Ombudsman hadn't done her work, the Campbell government would have succeeded in hiding the truth from the public. It's too late for Les or Campbell to call for an audit. The audit has been done. It's time for heads to roll, starting with Les'.

 
 

About Me | Mail Me | Navigation | Top
© 2007 David D. Schreck. All Rights Reserved.