Since he entered politics, Prime Minister Mark Carney has been accused of actual or perceived conflicts of interests, mainly regarding his connection to Brookfield Corporation. Before running for leader of the Liberal party in 2025, Carney was, first, vice-chair and head of ESG and impact investing and, later, board chair at Brookfield Asset Management. As such, he received shares, options and performance pay as part of his compensation package.
Now, as prime minister, he is making decisions that will impact these assets to the tune of, potentially, tens of millions of dollars. Brookfield’s investments are related to several key areas of public policy — including energy, environment, industry, taxation and infrastructure — in all of which Carney’s portfolio may put him in a conflict of interest.
What exactly is a conflict of interest? According to the Department of Justice, “A public office holder is in a conflict of interest when he or she exercises an official power, duty or function that provides an opportunity to further his or her private interests or those of his or her relatives or friends or to improperly further another person’s private interests.”
Having a real or even perceived conflict of interest over one’s head reduces a leader’s effectiveness whether in government or corporate life. If the head of a country’s government is thought to be serving his needs rather than those of his country and its citizens, such corruption is a clear threat to democracy — as is becoming all too clear in the United States during the second Trump administration. For a public corporation, reputation is a critical intangible asset to be fiercely protected. To quote Brookfield’s own Code of Business Conduct and Ethics, “Our reputation is everything and we should act responsibly in dealings with our securityholders, customers, clients, investors, suppliers, other stakeholders and competitors.”
As executive director of InvestNow and a shareholder of Brookfield Corporation, I submitted a shareholder proposal regarding the real and worrisome issue of the prime minister’s conflict of interest. Although Brookfield dismissed the proposal and will not be including it in its annual general meeting materials, we will be asking about Carney’s actual or perceived conflict of interest at the AGM on July 16. We want to help keep public attention on the issue and prevent normalization of the prime minister’s conflicts — or anyone else’s for that matter.
All countries must deal with conflicts of interest in the political and corporate spheres. Many have set up systems or groups to manage them. Canada and the United States both have ethics watchdogs. In Canada the Office of the Conflict of Interest and Ethics Commissioner helps “elected and appointed federal officials avoid conflicts between public and private interests.”
Concerns over President Trump’s business activities have heightened recently with the release of mandatory financial disclosures revealing his 2025 income was $2.2 billion. Trump’s apparently successful alignment of policy with profit has many Americans asking whether he is working for the country or for himself and his family.
Some argue existing mechanisms safeguard the public interest against conflicts of interest and they cite, for example, the ethics screen, a recusal process and the fact Carney’s assets have been placed in a blind trust. But the ethics screen is run by two non-elected Carney appointees. The recusal process has led to Carney being a “no-show” on 17 deliberations because of his Brookfield ties. And the blind trust can never truly be blind. There is as a result still room for reasonable concerns about conflicts of interest.
The only real solution is for Carney to cash out and sever all financial ties with Brookfield. Anything less just doesn’t cut it.
Carney apologists — brave ones — might point to Donald Trump’s many alleged conflicts of interest, whether his hotel business, his crypto investments, his relationship with the UAE and Qatar, or others But Canadians want to hold their government to a higher bar than the Trump standard. They need to know their leaders will govern in pursuit of the national interest, not their personal gain. They also need to know that corporate Canada is operating under strict governance rules and standards. Once assured of this, they will be in a better position to hold to account everyone in power, whether in governments or corporations.
Gina Pappano, executive director of InvestNow, was head of market intelligence at the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV).