Conflict of interest and insider dealing
NJN Network, Charlottetown, PEI. Canada, April 26, 2009
Five of Music PEI’s board members received grant money this year according to reports. Lloyd Doyle (Sandbar Music), Andrew Melzer (Panda Digital), Dave Wigmore, and Paul Milner all received grants and awards for undisclosed amounts from the publicly funded non-profit. A member of Executive Director Rob Oakie’s family also received funding.
Music PEI, a non-government organization, on Prince Edward Island, Canada, recently reported it’s annual grants for the the 2008/2009 fiscal year on April 24th, 2009 on their website. Music PEI was formed “to promote the music industry on Prince Edward Island.”
Music PEI grants range from $1,000 to $20,000 per instance. Normally insider dealing of this nature is considered a conflict of interest.
“Conflict of interest” can include “any situation in which an individual or corporation (either private or governmental) is in a position to exploit a professional or official capacity in some way for their personal or corporate benefit.” Wikipedia.
For the second year in a row board member Lloyd Doyle secured a direct grant for his business Sandbar Music. Doyle’s label Sandbar Music also got grants for nine of its musicians, two of them got two different funding grants. Last year, Sandbar got another direct grant and ten of it’s acts got grants, capturing almost half of all the money granted.
For the second year in a row board member Andrew Melzer got direct grants for his sole proprietorship Panda Digital. Panda got two grants this year.
Dave Wigmore, also a board member, got a direct grant in his own name.
Music PEI board member Paul Milner got a direct grant. Milner also benefited indirectly as the principal of “A” Major Sound and Shell Lane Studios. Their clients include several other music acts who got grants both this year and last year and recorded with “A” Major.
Music PEI encourages recipients of its funds to use the services of local providers including Board members Milner, Metzer and others.
A further grant to the daughter of Executive Director Rob Oakie could be construed as a conflict of interest. In the previous year, the same band was given a grant in the name of the drummer to avoid the appearance of conflict.
This year Music PEI has thrown away all common sense in granting public money to it’s directors, family members and musicians that contract services with the board members.
Conflicts of interest are hard to avoid, especially in a small place like PEI. We asked Music PEI last year if they have a policy on conflict of interest. They declined to comment. Their by-laws, last amended in 2006, contain no ethics policies.
Normally, a board member would recuse themselves during discussions that resulted in their financial rewards. The Music PEI board is so heavy with music insiders receiving direct and indirect benefits that avoiding conflicts take extra care.
That does not excuse the Music PEI board. Business ethics are an evolving issue. The public expects public bodies and public corporations to avoid even the appearance of a conflict.
Music PEI has a habit of conflict of interest and insider trading. Last year the same type of conflict of interest was obvious. Music PEI is funded by the Province of PEI under the oversight of Minister Carolyn Bertram.
Recently the PEI Auditor General found major irregularities in social services NGO’s funded by the government. Perhaps he needs to turn his attention to Music PEI.
Silent Do Gooder
Monkey See – Monkey Do. The Island way of life until we elect a political party with an iron clad ethics policy.
Music PEI is just following the example of the Ghiz lead Fifth Floor Mafia.
anon
When the other party was in we all howled they were on the take. A new goverment is in and it comes full circle.
anon
Sorry, I don’t know who you’re replying to. Are you quoting someone? It looks like yore being being talked abot in the third person?
Devin Casario
Stephen- I am compelled to write this in regards to your post in the ‘comments’ section referring to my former band Mars Hill. Many years ago, you e-mailed me asking permission to use a snippet/loop from the chorus of “Where did the Money Go?” for your blog. Without the band’s permission, I signed off on it. Mistake # 1- and believe me I learned from it. However, I signed off on a ‘snippet’ of the chorus. Much to the surprise of everyone, an anti-government video using the entire song was up on the Web and on Compass- I never gave you permission for that…again you implied that you would be using the ‘snippet’ for your blog- not using the entire song for a video- my band mate Chloe asked you to remove the video from the public domain- you did not. Second, Lloyd Doyle who represented us at the time did indeed side with us as he secured us funds to attend the 2006 ECMA’s in Halifax. Those my friend, are the facts.
Devin Casario
anon
Being two years old has nothing to do with what seems to be a 2 sided story.
You’ve gotten milage out of the Mars Hill story time and time again, MrPate. The other partys involved in this have as much rights as you to adress it.
anon
Fir someone who says ‘ you don t have to start a fight’, you seem to be ramping up to one.
Just an observation.
NJN
It’s vital for PEI’s music scene to clean up the corruption at Music PEI.
Money that artists desperately need to survive and grow their income potential is apparently being siphoned off to benefit more than half of the Board of Directors.
We discoved another Board member in conflict last night and suspect almost all them have breached their fiduciary trust.
When there is one bad apple it spoils the barrel. This barrel is full of bad apples.
If you are a musician you will either have to fight your way through this corrupt bureaucracy or “pay your dues.”
anon
I thought the road to becoming an artist was paved with dues paying.
I had always heard paying dues was all a part of the developing of an artist.
tongue in cheek
oh! Give me a f…ing break Anon.Life in general is full of paying dues and gone are the days when artists have to be poor martyrs to be good at what they do ! there is nothing wrong with an artist like Stephen ,showing some backbone and going after the lords and ladies of the music biz on P.E.I..As far as Mars hill is concerned ,they’re not showing much character by reneging on a deal because they stand to gain or lose from music P.E.I. Respect is earned and that is the way it’s been foreever , and they will not gain respect by caving to corrupt policy makers..
anon
‘Paying dues’ has nothing to do with being a ‘starvng artist’. It involves spending time, often years developing your talents, honing them to their essense and becoming a better artist.
All the free goverment money in the world isn’t going to help.
As for Mars Hill we seem to have heard from the party involved, and in the absense of emails what Devin says matches with what others have said- they didn’t want their whole song used in a way that made them very uncomfortable, and they thoght seconds would be sampled, not the whole thing.
Have a nice weekend.
NJN Editor
It’s like the song says – Sticky Fingers – everybodies on the take
NJN Editor
Well, that’s a cool challenge. I’m going to resurrect the whole story because I have the emails.
Devin is a nice guy with no balls. He caved into Harry Holman and he’s caving in again.
Devin and the group were given all the facts. The word “sample” was never used. We asked for the something from the middle. They were also given the video to approve or say nay.
This has nothing to do with the thievery at Music PEI. But it’s a great story of how the music establishment on PEI is corrupted by political influence.
A rock group tries to help the disabled. They get their knuckles crunched and cry momma!
I love freedom on PEI. It feels great. It fills your nostrils with that smell…that smell….of pig shit.
anon
Lol! Looking forward to it!