Toronto Star: Exclusive coverage of new CICTAR report on CPPIB failures

In a statement, a CPP Investments’ spokesperson said “we inevitably dispose of certain holdings for endless reasons, including mismanagement by operators or underperformance against expectations.”

The Toronto Star exclusive on CICTAR’s new report, ‘CPPIB’s ORPEA Debacle’ examines the evidence presented by CICTAR showing that, despite holding two seats on Orpea’s board, CPP Investments did nothing to stop a pattern of criminal conduct and embezzlement by top management at the failing care company ORPEA.

A CPPIB spokesperson is quoted, saying that the fund was ‘created explicitly to take risk’.

As the Star notes: ‘Canadian pension funds have invested millions of Canadians’ retirement savings into private long-term-care facilities…but that some argue that’s at the expense of residents’ well-being.’

Several Star investigations during the pandemic revealed that Canadian for-profit long-term-care companies employ less staff than non-profit, operate older buildings and tend to skimp on services. 

Other coverage of the report includes this piece in the French magazine ‘Avantages’, widespread coverage across Canada and coverage in investor press here and here

It is also highlighted by our partners CUPE here and PSI here

CICTAR’s own press release is available here