Justice Thomas Cromwell’s interim report reviewing the governance of Hockey Canada was released by the organization today.
Hockey Canada commissioned Cromwell to conduct an “independent” review in August “on behalf of the organization’s board of directors.”
Here are the key topics of the 108-page report.
National Equity Fund
Among Cromwell’s key conclusions were that he deemed the establishment and use of Hockey Canada’s National Equity Fund (NEF) appropriate, but that the oversight and transparency related to the use of the fund were insufficient.
“The establishment of reserve funds to address the risk of uninsured and under-insured claims is not only sound, but the failure to do so would be a serious oversight,” Cromwell wrote.
Related to the oversight of the fund, which has been used to pay out millions of dollars to settle sexual assault claims, Cromwell found “Hockey Canada has no written policy governing the NEF” and that the procedure related to the use of the Fund “is not widely known by Members, nor has it received formal Board approval.”
Similarly, as it relates to transparency for what the NEF is used for, “Members do not receive adequate information regarding these funds and their use.”
The National Equity Fund paid out 21 settlements for “uninsured or underinsured claims” between 1989 and 2022. Ten of those settlements involved injuries and accidents, while the remaining eleven involved “sexual misconduct.”
Hockey Canada shared Cromwell’s findings Thursday, stating they accept and will be reviewing his report.
“On the National Equity Fund, Hockey Canada accepts the report’s interim conclusions that while the establishment and use of the Fund is sound, there are significant improvements to be made to the Fund’s oversight and transparency,” Hockey Canada’s news release read. “Hockey Canada is reviewing Mr. Cromwell’s recommendations, with a view to implementing them as soon as possible.”
Participants Legacy Trust Fund
The Participants Legacy Trust Fund was also included in Cromwell’s initial report, a fund which “acts as an excess policy, accessible once the NEF has been exhausted.” In other words, if insufficient funds are available in the National Equity Fund to pay claims and settlements, Hockey Canada can access the Participants Legacy Trust Fund, where trustees are permitted “to transfer $2.1 million per occurrence (with no aggregate limit) from the Legacy Trust to the NEF.”
Similar to the National Equity Fund, Cromwell asserted that “Hockey Canada has no formal policy governing the Legacy Trust.”
Memo Suggested Board of Directors Retire From Office
Cromwell sent a memo to Hockey Canada’s Board of Directors on Oct. 10, one day prior to the mass resignation of the board and CEO Scott Smith. “While I acknowledge the dedication and tireless work of the current members of the Board, my view is that the best interests of Hockey Canada would be served if all directors retired from office when their current terms expire at the Dec. 17 annual meeting of Members and not put their name forward for re-election,” he wrote.
Cromwell’s full report will be made available by the end of October, but due to what he described as ”the current crisis that deepens daily,” Cromwell decided to release some findings early because “urgent and decisive action is necessary to address the governance issues associated with that crisis.”
Investigations into the ongoing Hockey Canada scandal will also continue through the Standing Committee on Canadian Heritage which is set to hear testimony from longtime Hockey Canada CEO Bob Nicholson at their next hearing.
