Three DND Officials Fired

[Old Sweat]

According to this report from the Winnipeg Free Press, three DND civilian senior executives were fired last week. The story is reproduced under the Fair Dealing provision of the Copyright Act.

DND fires three civilian execs, including official in charge of pension clawback
By: The Canadian Press

Posted: 2:10 PM

OTTAWA - Three mid-level civilian executives at National Defence were inexplicably fired earlier this month, including a director who's been at the centre of a class-action lawsuit that could cost the federal treasury up to $600 million.

Andre Bouchard, Gerry Mahon and Randy Helgason were let go Oct. 3 in what defence sources say was "an attempt to change the direction of each organization."

The dismissals came out of the blue, according to defence insiders.

In the case of Bouchard, president of the Defence Department's insurance program, it came at a critical juncture as the federal government negotiates its way through a multimillion-dollar class-action lawsuit.

Mahon headed CANEX, the chain of military base retail stores, and Helgason was in charge of personnel support programs.

Their departures were announced internally, but have not been explained, and in each case deputies have been appointed as acting replacements.

 

[dapaterson]

For clarity: none of the three were public servants; all were employed by Canadian Forces Non-Public Funds.

 

[fraserdw]

Maybe now CANEX will treat Full time reservists like their Reg counterparts.  Nothing pisses me off more than having to get a note from the CO proving I have a job to use CANEX plans, when the 17 year old PAT can charge thousands without a credit check.  My God, may credit score is 20 times better than the average PAT!

oooooohhhhhh!  Bye Bye Ladies, watch the swinging door!

 

[ArmyRick]

I used to babysit...er...I mean "supervise" PAT/PAR pers and I remember one knucklehead racking up a huge debt at the CANEX and was going for more until I advised them that the individual was pending a 5F release.

 

[PuckChaser]

Maybe now CANEX will treat Full time reservists like their Reg counterparts.  Nothing pisses me off more than having to get a note from the CO proving I have a job to use CANEX plans, when the 17 year old PAT can charge thousands without a credit check.  My God, may credit score is 20 times better than the average PAT!

They do a credit check on Reg F members, just had one done to buy some furniture...

 

[Jarnhamar]

Maybe now CANEX will treat Full time reservists like their Reg counterparts.  Nothing pisses me off more than having to get a note from the CO proving I have a job to use CANEX plans, when the 17 year old PAT can charge thousands without a credit check.  My God, may credit score is 20 times better than the average PAT!

oooooohhhhhh!  Bye Bye Ladies, watch the swinging door!

Would you trust lending a 17 year old thousands of dollars whom only has a part time job where they are required to work  1-  3 hour shift per month?

I believe it's less about singling out reservists and more about ensuring they get their money.

 

[dapaterson]

CANEX has largely outlived its usefulness.  Extending easy credit to young soldiers is not a good thing; and the wide array of commercial goods they're supposed to offer are now cheaper and easier to get via online merchants.

There may be an argument for a limited CANEX presence in remote locations for services like groceries, and support to deployed operations should be a no-fail task, but does the CF need to run general dry goods and grocery stores?

 

[fraserdw]

Except their biggest defaulters are PATs who are released and CF retirees.  I am neither, what I am saying is that a person should receive credit (or not) based on their credit rating.  Leon's has sold me thousands in furniture in the past decade and never once embarrassed me by asking for a note from my employer.  Canex could have had that business if their business model was not so stupid as to require one certain group to get a note from their employer proving they have a job.  Credit reports tend to tell you if someone has an income or not.  It is interesting that when I pull out the CF retiree ID card, they no longer require a note from my employer yet I do not collect a pension so how does that make me more credit worthy than  being a full time reservist making 80K a year?  The policy is flawed and discriminatory without producing any useful results beyond losing money for the base fund.

 

[fraserdw]

CANEX has largely outlived its usefulness.  Extending easy credit to young soldiers is not a good thing; and the wide array of commercial goods they're supposed to offer are now cheaper and easier to get via online merchants.

There may be an argument for a limited CANEX presence in remote locations for services like groceries, and support to deployed operations should be a no-fail task, but does the CF need to run general dry goods and grocery stores?

Agreed, I would go one further, let local merchants lease the space and provide the services for profit with a gross profit percentage to support base programs.  Works with bars, realtors and barbers on the base why not retail.

 

[McG]

CANEX has largely outlived its usefulness. 

Is it financially selfsustaining?

 

[fraserdw]

The employees are NPF so I do not think they are in the profit equation, the grounds and building are DND but they pay a nominal fee.  Anyone know the deep dark secrets of CANEX.  All I know is that Generals as shareholders is an urban legend, no self-respecting General would put his money into that!

 

[PuckChaser]

CANEX has largely outlived its usefulness.  Extending easy credit to young soldiers is not a good thing; and the wide array of commercial goods they're supposed to offer are now cheaper and easier to get via online merchants.

Things may be cheaper online, but what if you don't have the cash on hand? How many 20 year olds do you know have huge savings sitting around to buy a fridge and stove with cash? Just because you don't need the CANEX credit plan doesn't mean its useless, I see it as a great way for young soldiers to build credit.

 

[dapaterson]

There are many other agencies that extend credit.  Should the CF be underwriting car loans as well? Mortgages?

Much of what CANEX offers is not a core requirement - and thus is not something the CF should be in the business of doing.

 

[buzgo]

The money CANEX generates goes into supporting NPF. Fitness, gyms, sports, recreation, MFRC, messes etc etc etc.

-- added MFRC to the list.

 

[PuckChaser]

There are many other agencies that extend credit.  Should the CF be underwriting car loans as well? Mortgages?

There's a difference between $6,500 per military member and a $300,000 mortgage. There's a lot of other things that the CF provides that aren't a core requirement to do our jobs, they just make them easier on ourselves and our families. You seem deadset against anything extra, even though at worst it is revenue-neutral and provides an excellent service to soldiers and their families.

Other agencies extend credit to make money off people, CANEX does it to assist in building credit.

 

[aesop081]

when the 17 year old PAT can charge thousands without a credit check. 

There is a credit check done all all patrons buying items using the credit plan. All patrons.

If you're going to go on a rants, correct information helps.

 

[fraserdw]

There is a credit check done all all patrons buying items using the credit plan. All patrons.

If you're going to go on a rants, correct information helps.

I got a PAT with 6K run up.  Some credit check there, add a car payment, rations and quarters and you got can't make the bills.

 

[aesop081]

I got a PAT with 6K

To be honest, I don't give a shyte. There's a credit check, you were wrong. Next.

 

[dapaterson]

The money CANEX generates goes into supporting NPF. Fitness, gyms, sports, recreation, MFRC, messes etc etc etc.

-- added MFRC to the list.

Core military requirements for fitness and gyms, MFRCs and messes are paid out of public money, transferred to CFPSA, then paid by CFPSA.  Local add-ons may be subsidized by the base out of CANEX profits.

According to their financial statements, for the FY ended 31 March 11, CANEX sold $141M in merchandise, with just over $3M paid out to bases.  However, DND paid $2.5M to CANEX for payroll, travel and supplies.  The value of facilities was not identified or charged to CANEX.

So, essentially, CANEX operates at a loss which is masked by direct and indirect public subsidy.  The "NPF profit sharing" is a hidden public subsidy.


A more narrow focus on remote and deployed locations, together with in increase in renting out facilities at fair market value to third-party providers should be the way forward.  I'm not, however, holding my breath.

 

[Scoobie Newbie]

I have used the Canex plan many times and love that it is an interest free loan.  I'm not sure you would find that anywhere else.  Its great for first time families too, outfitting a home with appliances and such with a interest free loan.