Hockey Canada says it accepts a former Supreme Court justice’s report calling on the organization to address a lack of transparency and oversight related to a controversial reserve fund used to quietly settle uninsured liabilities — including sexual assault allegations.
The hockey organization’s response comes a day after CBC News reported that the new report, commissioned by Hockey Canada, found that its reserve fund is necessary.
But the report, drafted by retired Supreme Court justice Thomas Cromwell, also found serious flaws with how the fund is handled. Cromwell concluded that there were no protocols or procedures in place to manage the fund, that detailed records of withdrawals were kept off the books and that Hockey Canada broke disclosure rules by failing to notify members about large payouts.
“Hockey Canada is reviewing Mr. Cromwell’s recommendations, with a view to implementing them as soon as possible,” Hockey Canada said in a media statement Thursday.
The organization publicly released a full copy of the interim report.
The organization hired Cromwell in August to review its governance structure as politicians and sponsors called on Hockey Canada’s leadership team to resign. Hockey parents were outraged to learn that the National Equity Fund — supported in part by players’ registration fees — was used to pay out a settlement for a $3.5 million lawsuit.
The claimant in that lawsuit alleged eight hockey players — some of them members of the 2018 World Junior hockey team — sexually assaulted her.
It was later disclosed in testimony before a parliamentary committee that another $7.6 million had been withdrawn from the fund since 1989 for other alleged sexual abuse settlements.
WATCH/ Hockey Canada’s use of funds to pay sexual assault claims flawed: report
A report commissioned by Hockey Canada found serious flaws with how the organization handled a fund used to pay for sexual assault claims.
Hockey Canada said Thursday there are “systemic issues” plaguing hockey in Canada. It’s urging the provincial hockey federations that will vote on the recommendations in the report to “consider accepting them in their entirety.” The federations must approve any changes to Hockey Canada’s bylaws.
“Hockey Canada has heard from many Canadians, including members, players, parents and corporate partners, that change is necessary to make hockey a safer environment for all participants,” Hockey Canada said in the media statement.
“We remain fully committed to making these changes necessary to regain the trust of Canadians and address systemic issues in and around Canada’s game.”
Cromwell’s interim report found Hockey Canada broke the rules by failing to disclose to its members six instances since 1999 of settlements exceeding $500,000.
The hockey organization also failed to post on its website or inform parents that $13.65 of every individual member’s annual insurance fee to Hockey Canada ended up in the National Equity Fund. That fund was set up to pay out uninsured or underinsured liabilities.
Cromwell concluded the fund itself is necessary and failing to have one in place would be “a serious oversight.” He said Hockey Canada needs to put in place protocols around settlement amounts to determine who signs off on payments and how members are notified.
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Hockey Canada also said it’s calling on provincial federations to pass changes to the organization’s bylaws governing the nomination process for the new board of directors.
After months of mounting pressure, the entire board of directors announced Tuesday that they would resign. Scott Smith, president and CEO of Hockey Canada, also stepped down.
The resignations came after every single one of Hockey Canada’s major sponsors — including Nike, Tim Hortons and Scotiabank — either cut ties entirely with the organization or distanced itself from men’s hockey.
The turning point was controversial testimony before a Commons committee by then-chair of the board of directors Andrea Skinner, who said toxic behaviour was a societal problem and it was counterproductive to use Hockey Canada as a scapegoat.
Provincial hockey federations are meeting on Saturday in Toronto to vote on a series of recommendations that involve changing bylaws before an election to select the new board of directors on Dec. 17.
Cromwell recommended that all nominations be run through a nomination committee. He also called for better gender parity on the board and increasing the number of board members from nine to 13.
Provincial federations are also expected to vote on a recommendation to extend the terms for the board of directors and its chair.
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