Kick Backs...

[TOM4CWB]

Kernel;

Did you see this?

DJ. WSJ(4/4)ConAgra Says It Quickly Caught Errors In Unit's Documents

(From The Wall Street Journal) By Patricia Callahan

As federal investigators continue to probe allegations of accounting fraud at Ahold NV, ConAgra Foods Inc. said two members from its sales staff signed off on inaccurate documents provided by Ahold's U.S. Foodservice unit earlier this year.

ConAgra said its accounting department quickly caught the errors, however, and alerted Ahold's U.S. Foodservice unit as well as Ahold's outside auditor, Deloitte & Touche LLP, before news of the accounting scandal broke in late February. ConAgra said the documents sought to verify the amount of promotional money or rebates that U.S. Foodservice said ConAgra owed.

The accounting for such rebates is crucial to the government's investigation. Ahold in February acknowledged it overstated earnings at U.S. Foodservice by at least $500 million. Ahold has turned over to federal investigators information suggesting that U.S. food companies may have cooperated inappropriately in the effort to inflate earnings at U.S. Foodservice -- by signing off on incorrect documents related to rebates, a person familiar with the situation said.

500 million in extra earnings... hmmm...

How wide spread are kick back schemes in the food sector?

"Meanwhile, Kraft Foods Inc., part of Altria Group Inc.; Sara Lee Corp.; General Mills Inc.; H.J. Heinz Co.; and Hormel Foods Corp. yesterday each disclosed they were contacted by federal investigators in connection with the inquiry."

I wonder how much CWB wheat is used by all these folks...hmmm...?

[rain]

Tom don't be surprised about this kind of stuff. ConAgra, ADM themselves have a very shady past history over the last 20 years for price fixing and collusion. I wouldnot own a share in either company.

[Dyno]

tom4cwb, I am sure if you really really sssssssttttttrrrrreeeeettttttcccccchhhhh you can somehow link the corporate scandals at Conagra, ADM Kraft etc. to the CWB. C'mon now we are all counting on you! All roads of course lead to Main St. Winnipeg!

[TOM4CWB]

Dyno;

Trust you to bring this up;

I had enough to do with Kickbacks at the CWB, dealing with Buybacks, to do me the rest of my life... and it still goes on today...

SO Dyno;

Why is the CWB, the CDN Auditor General, the CWB's Auditors, and the CWB Board of directors chicken to accout for Buy-back transactions, when the CWB Act requires they be accounted for seperately?

I know the standard answer is because this issue is before the Courts...

But I believe there is much more than this to it.

Just as I was offered a big kick back personally, I demand an accounting of this corrupt system... even if the CWB has the court system saying "there is no duty of care to "designated area" wheat and barley producers".

The CWB code of Conduct requires it;

THe CWB has a moral reqirement to account for these issues... so they stop happening!

In a real audit, by at truly independant auditor, I demand to have accurate accounting of the Buy-back revenues and proceeds... It is required by law... and about time the CWB obeyed the CWB Act!

Now Dyno, lets go, and see how much money the Buy-back COSTS "designated area" farmers (in kickbacks) each year!

[TOM4CWB]

Dyno;

Upon close review of the 2001-02 PPO statements, page 46 It is clear the CWB is paying "kick backs" to the CWB Contingency Fund.

My PPO contract states, in writing, that the CWB is to only charge genuine costs on liquidation damages.

On page 46, there are no costs associated with Basis charges.

Therefore the CWB charged a cost that did not exist, since the CWB sells all PPO contracted grain to the pool anyway, not to any end user.

Therefore there can be no basis "cost" to be charged, because the CWB does not cash price this grain in the first place to anyone.

Another interesting kickback entry on Page 46, is the "Bad Debt Expense", of $427,000.00. This I am told, is written off Liquidation damages, the $649,000.00 counted as "Revenue" for PPO Wheat programs.

How can the CWB "write off" bad debt, after less than a year, when the CWB has a monopoly on all human consumption wheat and barley? The CWB has the right by the PPO contract to take back this money any time in the future.

So for the CWB to say it was uncollectable... is unbelievable... it is in fact a kickback to freinds of the CWB... who the CWB "chose" to give a break to, and then those discriminated against people (PPO farmers who objected but were taken advantage of) the CWB took their money and added it to the CWB contingency fund!

What a scam... the Mafia would be proud of the CWB!

With such efficiency, the CWB created this scam, one must seriously consider that this wasn't an accident, but that the CWB was too efficient at setting this system up... there must be other templates in the CWB system... that point to other kick back accounting methods.

It was the "Independant" CWB's Auditors, who were to be on gaurd to protect farmers... integrety... is far from the CWB in these scams.

The CWB's response, "SUE ME".

What a deal.

[bmj182]

I found it interesting that after the Enron
scandal our illustrious Prime Minister was
lecturing companies about bad accounting
practises. Does s--t run down hill? Set a
good example Jean!

[Dyno]

Thanks so much for not letting us down tom4cwb. So easy to get your motor running it was almost a bit scary. My apologies for interupting though, carry on with responses to your own replies.

[TOM4CWB]

Dyno;

Some farmers actually would like to make an honest living growing wheat... and need honest market signals to create wealth for the communities we live and work in.

Too bad CWB command and control directives prevent us farm managers from doing our job.

CWB dreams for longer term wheat markets show the true value of this CWB marketing system... a vison leading us into declining markets, of frustration and futility.

However Dyno, I doubt this would bother you.

Our Farms are what we make of them.

[TOM4CWB]

Dyno;

One of my "high profile" friends from the Peace, got his CWB PPO liquidation damages back in the past couple of weeks...

When is the CWB going to pubically admit the PPO Basis contract Liquidation damages are not true expences at all, as the 2001-02 CWB annual statement proves (they do not show up as an expence).

THe CWB has an obligation to refund all farmers liqudation damages that were not direct expences caused by a loss in the hedged futures position, we caused the CWB to pay, because of the PPO contract we signed.

It is unbelievable that the CWB treats these liquidation damages as political tools to give people back their own money... IF the CWB feels they deserve the "favour".

If any system could create corruption... this CWB system of "favours" is most prone and least accountable to "designated area" farmers.

I expect all my neighbours to get refund cheques... not just a few select few... whom the CWB is trying to get on the right side of...

RIGHT is RIGHT.

[TOM4CWB]

Dyno;

I see this statement on April 17th DTN report on the state of wheat sales;

"Pakistan is offering a reduced wheat price in order to get a new customer -- Bangladesh. Pakistan is looking to supply 3.7 million bushels of wheat to Bangladesh (the former East Pakistan) at less than $3.54 per bushel, before freight. No word on whether Bangladesh would get the usual kickback on top of a reduced price. Pakistan sells its wheat quite high (over $4.06 per bushel, with no freight paid), but then kicks back up to 29 percent of the price to the buyer.

The kickback can reduce the price to a level ($3.50-$3.60) where even Egypt will buy Pakistani wheat."

So Dyno;

Since we can see that Kick-backs are not unusual in the business of selling wheat...

What makes you so sure that the CWB quoted values to "premium markets" don't have a kick-back scheme involved?

The CWB obviously doesn't give "designated area" wheat producers the premium prices the CWB claims to extract... so where exactly does the money go?