Case dismissed: Manitoba Hydro’s whistleblower

Hey there, time traveller!
This article was published 02/12/2014 (4040 days ago), so information in it may no longer be current.

Given everything else with Manitoba Hydro, is it any wonder we’ve forgotten about the “whistleblower”?

The memory of the fallout of the whistleblower’s allegations against Hydro came back to me when I recently skimmed the 2013-14 annual report for the Public Utilities Board.

Deep in the report I read this:

A Star Group LLC (Limited Liability Company) {the whistleblower’s company} a New York company (A Star) filed a complaint (claim) against the PUB and other parties on June 29, 2013 in the Southern District Court of New York that made various allegations and sought numerous remedies, including damages from the PUB. A Star had provided risk consulting services under a series of contracts with Manitoba Hydro from 2004-2008. In carrying out its mandate respecting Manitoba Hydro’s risks and rate impacts, the PUB agreed to receive, subject to confidentiality conditions, reports from A Star that had been prepared for Manitoba Hydro. The PUB retained counsel to represent it before the Court. The PUB sought dismissal of the claim for a number of reasons. Various matters were addressed by the Court in relation to the complaint during the reporting period. (On June 30, 2014 the Southern District Court of New York granted the motions by PUB and the other parties and dismissed the A Star law suit, with prejudice.)

The judge’s full decision is here.

The A Star Group has filed a notice appeal in the case.

The whistleblower alleged six years ago that the Crown corporation would go bankrupt or suffer blackouts because of its export-sales practices.

Manitoba Hydro has said it subsequently paid out $4.3 million to deal with the fallout of the allegations, essentially to debunk them.

The energy consultant — her name has not been publicly revealed in Manitoba as it’s protected under the province’s Public Interest Disclosure Act — started working for Hydro in April 2004 to help it process the sale of surplus power to the American Midwest market.

That evolved to a larger consulting role in 2006 to review Hydro’s risk and to recommend policies and procedures for a future risk-management system. Hydro said her contract was ended after she refused to take direction, ignored the original assignment and wouldn’t offer details on her methods.

She later launched the New York claiming breach of contract, misappropriation of trade secrets, unfair competition, copyright infringement, unjust enrichment, and tortious interference with contract, or wrongful interference with her contractual or business relationships.

The court dismissed her allegations. 

Curiously, despite everything, the whistleblower’s LinkedIn profile still lists Manitoba Hydro under her work experience as does the website for her New York-based risk advisory and consultancy firm.