Atlantic Canada Opportunities Agency (ACOA) is a federal government agency that offers loans and other financial support to businesses that are unwilling or unable to get credit from regular banks. The agency is being criticised for poor business practices: Companies that failed to repay loans have been favoured with even more public funds. Several eventually went bankrupt, leaving taxpayers holding the bag.
Some companies that failed received ACOA funding over 15 years, returning repeatedly for loans and subsidies between 1988 and 2005.They include:
- King Metal Fabricators of Dartmouth, N.S., which received money on 11 occasions — three loans and eight grants before bankruptcy proceedings resulted in a $317,262 loss for ACOA.
- 10824 Newfoundland (Servco Environment) Ltd., a provider of chemical and oil spill cleanup technology, received money nine times from ACOA between 1991 and 1996, before last year's writeoff of about $104,000.
- Cape Minerals Ltd. of Edwardsville, N.S., received money on eight occasions between 1992 and 1997, before a writeoff of $96,626 last year.
- Juniper Lumber of Juniper, N.B., cost ACOA $156,062, after getting money from the agency on seven occasions between 1988 and 1993.
The idea behind public funding is to improve the economy by helping businesses reach profitability. That these firms return to the trough time after time indicates that "profitability" is beyond their grasp.
ACOA spokesman Richard Gauthier insists that the firms met agency criteria when the loans were made. How about re-evaluating the criteria with a view to ensuring that repeat defaulters are not allowed back into the public trough?









Posts

For more examples of Chinglish (bad translations of English seen in China), click