Why not post your comments to the Toronto Sun?

The policy reason justifying the existence of the Liquor Control Board of Ontario is "social responsibility." We're told only a government agency can be trusted to sell alcohol responsibly.

But there seems to be some pretty irresponsible behaviour at Booze Inc. these days.

An LCBO insider has informed us that a number of LCBO employees receive "gifts" from booze suppliers and, among the controversies:

1. No one at the board is keeping track of the "gifting", thus, it's unknown how widespread the practice is.

2. Some LCBO employees are apparently not declaring gifts from suppliers as taxable benefits.

3. LCBO employees receiving gifts from suppliers may be breaking the law.

The acceptance of "product samples," according to our source, is a common occurrence at LCBO headquarters.

Small wonder -- imagine being a decision-maker employed by a billion dollar, state-sanctioned liquor monopoly.

The LCBO has a policy pertaining to "gifts and gratuities" in its administration manual.

It reads: "No LCBO employee should accept any gifts or gratuities from any supplier organization, except for promotional items and items of a nominal value. The Board views gifts having a value over $200 per annum from any individual or organization as the nominal threshold. Any gift exceeding this figure should be reported in Trade Function Reports."

So, the LCBO's definition of a "nominal" gift or gratuity is anything valued up to "$200 per annum from any individual or organization." Interesting. Since the LCBO deals with hundreds of suppliers, those "nominal" gifts could add up fast. For example, "nominal" $200 gifts per annum from, say, 50 suppliers, would be $10,000 per year.

FREEBIES

It's also possible some LCBO employees aren't declaring these freebies as taxable benefits, even when they exceed $200.

A Freedom of Information request on this issue was recently submitted to the LCBO by former long-time employee Larry Paterson. He asked: "Are any samples or items of value included in taxable benefits for Canadian Revenue Agency Income Tax purposes, and are they disclosed in the amount of taxable benefits published under the Salary Disclosure Act?"

The answer from LCBO Treasurer Richard Whitelaw was: "The payroll department is not aware or has received declarations of items above the nominal value as defined by CCRA (Canada Customs and Revenue Agency) guidelines. Therefore, no items of value have been made for income tax purposes or are included in taxable benefits published under the Salary Disclosure Act to date."

None? Nobody at the LCBO has accepted or reported a gift or gratuity valued at more than $200? Wow.

If some LCBO employees are neglecting to declare gifts as taxable benefits, it appears they could be breaking the law. Section 121 of the Criminal Code "prohibits Crown employees from demanding, accepting or offering, or agreeing to accept, directly or indirectly, a commission, reward, or benefit of any kind, from a person who has dealings with the government or a government agency."

DIDN'T RESPOND

What does the LCBO have to say about these issues?

Whitelaw and LCBO President/COO Bob Peter did not return my calls.

David Caplan, the minister responsible for the LCBO, also didn't respond to repeated interview requests.

LCBO spokesman Chris Layton did send me an email.

It reads in part: "We (the LCBO) have been advised ... that the new Public Service of Ontario Act will be proclaimed law on August 20. As a result, we will be reviewing our policies and guidelines, including those related to conflict of interest and gifting and where required we will make any necessary revisions to our policies and guidelines to ensure they are consistent with the new ... Act."

In any event, you'd think LCBO officials would have enough disposable income to buy their own hooch, given that many have received substantial raises in recent years. (How does a 50% hike and more during the past five years sound?)

An LCBO executive who requested anonymity told me: "What's going on here with these so-called gifts and salaries is really quite disgusting. If only the taxpayers knew ...."

Isn't it time we did?

David Menzies is a freelance writer.

www.littlefatwino.com