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Lethbridge Herald Newspaper Archives

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Lethbridge Herald, The (Newspaper) - January 25, 1975, Lethbridge, Alberta Accused of receiving 'kickbacks', ex AHC director charged From CANADIAN PRESS EDMONTON Two criminal charges, each carry- ing a maximum sentence of five years have been laid against Bob Orysiuk, former executive director of the Alberta Housing Corp., an RCMP spokesman said Friday. The charges were laid several hours after the provin- cial government made public .a report into the affairs of the Crown corporation. Orysiuk has been charged with acceptance of a benefit while being a government of- ficial and breach ;of trust while being a government of- ficial. He is scheduled to appear in court Tuesday. In his report, Mr. Justice J. M. Cairns said Bob Orysiuk used "'various schemes" to collect large amounts of mon- ey "at the expense of the cor- poration." The biggest scheme was a loan by the AHC from a German bank in 1969. At the time it was made, it cost two per cent more in interest, or than it would have cost through legitimate Canadian channels, said the judge. With revaluations of the deutschmark, the province will eventually have paid in excess of million "over what it would have been if the money had been borrowed properly." "There was no conceivable justification for Orysiuk arranging this loan with a real estate agent in Montreal and through him, in Germany, un- less it was for the obvious reason that he had a personal interest ip so I have no doubt was the fact." Mr. Justice Cairns said he believed Mr. Orysiuk received of a fee dis- tributed to various persons in- volved in securing the loan. Other payments were made to the former mayor of Drumheller, E. A. foshach, Victor Farkas of Montreal, and European brokers. Mr. Orysiuk also disregard- ed the AHC board of directors in deciding how land assembly in Edmonton's Mill Woods sub-division would take place, the report says. The AHC could have saved by assigning land ac- quisitions to government em- ployees rather than to private firms. .Mr. Orysiuk retained Edmonton lawyer Ed Achtem to assemble land in the southern half of Mill Woods, agreeing to give the lawyer a five-per-cent commission although Weber Bros. Realty, the firm working in the northern half, was to receive only three per cent. "I have no.doubt that the commission was set at this high figure to allow sufficient leeway to permit Achtem to kick back or pay Orysiuk one- half of the commission the judge said. Mr. Achtem received {305, 123 in commission, of which Mr. Orysiuk received, or was entitled to, The report also said a conflict of interest existed between Mr. Orysiuk's posi- tion as AHC director and his position as a 25-per-cen.t shareholder in.Perma Development, which was building apartments in Inuvik, N.W.T. Finally, Mr. Orysiuk and Mr. Achtem jointly owned a warehouse which the AHC rented, then bought, from the lawyer. Mr. Orysiuk's interest in the warehouse was not dis- closed to the Crown cor- poration, said Mr. Justice Cairns. The judge said the AHC's board of directors, whose members had received some information about the million loan, "were complete- ly derelict in their duty in not investigating the matter further." Dies at 78 OTTAWA (CP) Charlotte Whitton, the 78-year-old con- troversial former mayor of Ottawa, died in hospital here early today. Seen and heard About town Games' organizer Dick Mells showing off his final plans for the Games opening, then getting a phone call to revise the program again Norma Bennett asking Friday afternoon how the Broncos hockey team did Friday night. The LetHbridge Herald LETHBRIDGE, ALBERTA, SATURDAY, JANUARY 25, 1975 Ontario can't save Syncrude Report confirms surplus A Lethbridge truck driver, Dennis Carlson, 26, is in critical condition in Foothills Hospital in Calgary following a.two-truck collision on "Windy Corner" at Crowsnest Lake Friday. Mr. Carlson, driving an empty truck, (inset above) was proceed- ing west on Highway 3 to Summit Lime works to load up with limestone to be delivered to Taber Sugar Factories when he was in collision with an eastbound auto carrier driven by Daniel Gunson, 24, of'Surrey B.C. The accident occurred VERN DECOUX photos 'Windy Corner'accident on a curve on the highway. Gunson sustained a cut knee and broken toe and was hospitalized over night. Carlson sustained multiple injuries and after being checked at the Crowsnest Pass Municipal hospital was taken by ambulahce to. Calgary. Coalhaul truckers who use the road continually attempted to pull the trucks apart to free Carlson but were unable to do so and had to resort to jacking the cab apart to free the in- jured man. A near million surplus on 1974 city operations has been confirmed in a report going to city council Monday. The surplus total of includes a general operating surplus of and sur- pluses of on sewage collection and disposal, and on electrical dis- tribution. Deficits of in water supply, in garbage and waste collection and disposal, and in public transit reduced the total. interest on city investments was the major contributor to the general operating surplus. It yielded which was higher than budgeted. City Manager Allister Findlay will submit a con- fidential report to council Monday recommending how the surplus should be allocated. The surplus last year was split three w.ays go- ing to relief of taxation, West Lethbridge development and downtown redevelopment utilities relocation. Council indicated in its capital budget deliberations in December that some of the year-end surplus would go _ towards the payment on industrial land. This Weekend Turks reject concessions FACES As the tears ol the Depression deepened, a new school of painters surfaced In Canada during (he 30s. To trace the changes In painting ol this period, the National Gallery has prepared an ex- hibition called "Cana- dian Painting In the Thirties." Weekend Page 15 PILGRIM FAITH Herald religion writer Noel Buchanan today launches a search for spiritual peace with series on contemporary church membership. Page 13 WRESTLING LCC wrestling coach Shaun Ward discusses the-lntracacles of amateur wrestling and the make-up of the college wrestling team. Page 16 CERAMICS Using the world's oldest raw materials, Sun- burst Ceramics Ltd. makes bean pots for and clay bread bakers for Ed- monton housewives. Page 19 80 Pages Classified........30-34 Comics............26 Comment.........4, 5 19-21 Family..........22-24 Markets........28, 29 Religion.........11-13 Sports...........14-16 TV.................6 Weather............3 LOW TONIGHT 20, HIGH 35; LIGHT SNOW New York Times Service KYRENIA, Cyprus The commander of Turkish army forces in Cyprus indicated in an interview Friday that there was little likelihood Turkey was prepared to make con- ciliatory moves before the Feb. 5 deadline for a Congressional suspension o{ American military aid to Turkey. Lieut.-Gen. Bedrettin Demirel, in a two-hour conversation at his head- quarters in what was once a resort hotel in this coastal town, said repeatedly that concessions to the Greek Cypriote who were defeated by his troops in the invasion last summer must come as part of a general political settlement, not on a piecemeal basis. his first interview since the invasion, disclaimed competence to speak on political issues. But because he is generally considered the most powerful man. in the Turkish occupied north of the island and is believed to reflect the thinking of the general staff, the views he ex- pressed in carefully chosen words are significant. Unless Turkey convinces the United States in concrete ways that she is prepared to make some concessions to the defeated Greeks and ease the way for a political settlement, President Ford is under Congressional mandate to end military assistance to Ankara. Demirel said conciliatory moves the United States would consider as significant concessions would have to be part of a general political settlement. The United States, for ex- ample, hoped that an agree- ment to reopen the Nicosia International Airport, in the United Nations controlled land between the warring sides, had been agreed upon between the leaders of the two Cypribt communities, until it was rejected at Ankara's de- mand by the chief of the Turkish Rauf Denktash. In an interview last Wednesday, Denktash said he had acted on Ankara's instruc- tions because Ankara had the deciding word on matters relating to security. DICTATORSHIP REPLACES BANGLADESH DEMOCRACY DACCA (AP) Sheik Mujibur Rahman scrapped Bangla- desh's parliamentary' democracy today and took over as all- powerful president. Sheik Mujib, the pipe-puffing orator who led his people in a successful war of independence from Pakistan in 1971, assumes all executive powers under a constitutional amendment he bulldozed through parliament without a dissenting vote. The amendment, which amounts in effect to a new con- stitution, empowers Sheik Mujib to set up a one-party system that will rid him of all opposition. It permits parliament to remain-through the three years left in its term, but strips it of all but advisory powers. ByALSCARTH Herald Legislature Bureau EDMONTON Alberta cannot look to Ontario to save a threatened oil sands project, but Ontario Treasurer D'Arcy McKeough said Friday his government is considering putting some money in the project. Meanwhile, Don Getty, Alberta minister of federal and inter-governmental af- fairs, told reporters he asked Synerude Thursday to extend a month's end deadline for shutting down the project. Mr. Getty, Mr. McKeough, Ontario Energy Minister Den- nis Timbrell and Alberta Mines Minister Bill Dickie met here for an hour-and-a- half Friday to discuss Syncrude. After the meeting Mr. McKeough said Ontario has "other priorities that are frankly higher priorities" but might invest now that an im- portant project for Canada is threatened. The Syncrude consortium of Imperial Oil, Canada and Gulf Oil say they must shut down construction of the barrel per day plant by Jan. 31 if more investors cannot be found to pump, in billion. Construction costs have es- calated to billion from un- der billion, the consortium i says. Mr. McKeough said par- ticipation by Ontario would be limited if it did decide to invest. But the province recognized that it would benefit from the plant as would the rest of Canada. Oil sands plants will help Canada's balance of payments, technological base and security of supply, he said. Mr. Timbrell, 28, Ontario's recently named energy minister, said both provinces agreed a Jan. 31 deadline is difficult if not impossible to meet for a decision on investing. Mr. Getty then told reporters he believed there is "a high degree of potential for a solution" if Syncrude will extend its deadline. He refused to elaborate on what assurances can be offered Syncrude that more investors will come forward. Shell Canada, Ontario and the federal government are possibilities, while other provinces are still considering investing. Asked if the organization of petroleum exporting countries are considering investing, Mr. Getty said "there are always feelers." But he said Alberta would have to know much more about such "petro- dollars" to consider 'such investment. Mr. Getty said a combina- tion of investors could be the answer to the troubled pro- ject's problems. Syncrude President Frank Spragins said no decision can be made on Mr. Getty's re- quest until Syncrude receives more information on potential investors. "There must be some more information before we change the Mr. Spragins said in a telephone interview. "Until we get all of the detail- ed responses, we can't presume what will hapen." Mr. Spragins said Syncrude still hopes for replies next week. However, Energy Minister Donald MacDonald indicated Friday a federal decision on whether to invest in the Syncrude project might not be ready by next Friday's deadline. Hostility greets book plan PETERBOROUGH, Ont. (CP) State Secretary Hugh Faulkner's new program to bolster the fortunes of the Canadian publishing industry was greeted with hostility and disrnay Friday by some of the .persons who are supposed to benefit. Publishers, authors and book distributors told Mr, Faulkner that the expanded publishing policy, which includes a Smillion increase in federal financial aid to domestic publishing, will not solve the financial and cultural dilemma facing the Canadian book and periodical industry. "I am profoundly dis- said Toronto book publisher James Lorimer, the first of a parade of delegates to criticize the program out- lined by Mr. Faulkner during a two-day conference at Trent. University on the state of English-language publishing in Canada. Others said the policy would have little impact on the dominat'ion by big United States companies over book and magazine publishing and distribution in Canada. (See earlier story on Page 25) CNR sues engineers By THE CANADIAN PRESS Canadian National Railways (CNR) freight and passenger service from On- tario to British Columbia remained severely curtailed Friday as CNR began serving writs for damages on locomotive engineers who it says are striking illegally. In the being served on the Brotherhood of Locomotive railway is seeking compensa- tion for an undisclosed loss resulting from the walkouts which began Wednesday night. Economic 'brain trust' bypasses Turner By VICTOR MACKIE Herald Ottawa Bureau OTTAWA Finance Minister John Turner has never sat in on meetings of the economics brain trust set up by the prime minister's office to keep it informed on developments affecting economic health of the country. The existence of this so called "group of six" is a sore subject in the finance department. It is probably one of the reasons why deputy finance minister Simon Reisman decided to call it quits and get out of the government service early this year. He undoubtedly saw this as the "shape of things to come." The prime minister's office said Friday the group of professional economists meets occasionally in Ottawa to keep the prime minister's office informed about matters of economic importance "which in Iheir opinion are of outstanding interest to the private sector." "The objective of these meetings is to keep the government aware of the concerns of an informed and representative group of professional persons active in a study of the overall affairs of the Canadian political said Prime Minister Trudeau. Opposition members are ex- ploiting the Issue in the Com- mons. They were gleefully pouring salt into wounds Fri- day when they asked for con- firmation of the existence of the private advisory group of professional economists to ad- vise Che PMO. Questions as to whether Mr. Turner had ever attended their meetings were asked in light of recent press reports suggesting the finance minister is "incensed" over the move by the PMO to go outside the government and seek private professional ad- vice on the economy. There have been suggestions in the press and on radio that.Mr. Turner might "resign" over the issue. This he has vigorously denied. Prime Minister Trudeau confirmed existence of the private group of economic ad- visors. He said it was created by his principal secretary Jack Austin. "This is a group of outside economists. Of course, if the minister of finance wanted to attend he could. But their meetings are not attended at the ministerial level. I only dropped in once to meet them, Mr. Trudeau told the house. What is particularly annoy- ing to the finance minister and key advisors in his depart- ment is that the new advisory group was established privately during the summer months when most of the cabinet including Mr. Turner were out of town on vacation. ;