What A Financing Scandal In A Canadian City Can Teach Us About Ethical Conduct In Government/Business Relations

Abstract

In the mid-sized City of Waterloo, Ontario, Canada, a lease-and-lease-back transaction was arranged with a private sector financial institution to fund the construction of a public park containing ice-rinks, sports fields, a golf course and walking trails. The terms of the transaction were misrepresented to the City. But this was not discovered for months after the deal was signed. A public inquiry followed. In the process many issues of ethical conduct in municipal governance were brought to light. This paper uses the park financing case as a way of exploring some of the ethical issues that have broad application to business/government relations.