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Alberta's multi-billion $ public investment in KXL takes another step toward a write-off. It leaves me wondering: what role did an erroneous understanding of "indemnification of political risk" play in getting us here? #ableg


There is a logic to public investment to indemnify a project against political risk in some situations: where the government making the investment has some control or influence over that risk.

It serves the same function as a change in law provision in a contract with government: the government accepts the losses of the prospective policy change that creates the risk. The losses are allocated to the party who can best avoid them.

The federal government's TMX investment is one example. The major impediments apparent were largely under Ottawa's control: adequate environmental assessment and adequate FN consultation.

By making the investment, Ottawa either carries out the necessary actions to allow TMX to proceed, or suffers the losses of failing to do so.
There is literally too much to unpack here.

Seems like the AGs job is to constantly make recommendations that are ignored. How ironic is it that the Ministry that is responsible for distributions to the poor is also the one that has some of the glaring 'irregularities'.


"Nowhere was the picture more stark than in Karl Samuda’s MLSS, which the auditor general argued has been persistent in ignoring recommendations over the years to improve its stewardship of public funds."

That ministry alone accounted for unresolved monetary risks of 3.3 billion

173 million in transactions could not be verified because of inadequate supporting documents.

173 million..

Tardiness...

Disregard for it's own internal audit..

Significant internal control deficiences....

Lack of appetite to fix the problems flagged as far back as 2011!!!

This was already known but

"In a damning 2018 audit, Monroe Ellis found that in 2017, without permission, the NIF spent 27 million to purchase shares owned by the spouse of a senior executive."

Uncovered alleged 600 million fraud in 2018...

50 million in payments made to companies without valid contracts....

That brings total taxpayer exposure to 35 billion...
Except that @AOC asked for the $2,000 after the $600 payout was negotiated by House Democrats, Senate Republicans and the Trump regime. Which was never enough to start. Now Biden is still not providing the $2,000 when folks need the money.

The Member from New York is correct.


You can argue that AOC shouldn't have taken to media to make her case. But she's a Member of Congress and can use any of the tools at her disposal to do so. In any case, she is correct that what Biden is proposing isn't nearly good enough. Also, Biden only responds to pressure.

It is only B.S. to you because you are more-aligned with Biden and his wing of the Democratic Party than with AOC's wing.


The reality is that $2,000 is not enough and when Biden stepped into this, he basically agreed to give $2,000 (even if he 'meant' just another $1,400). Biden should have just did the $2,000 because we all know that another $1,400 isn't enough.


Bernie praised it as a 'very strong first installment'. Which means that he expects more than just another $1,400. But because he has a closer relationship with Biden than AOC does, he's not going to press hard right now. @charles_gaba