Posted on 01/12/2006 10:13:21 PM PST by UpHereEh
Hamilton Liberal cabinet minister Tony Valeri more than doubled his money in three months when he flipped a property next to his home to the son of a prominent businessman with ties to the Liberal party.
Valeri, Liberal MP for Hamilton East-Stoney Creek, purchased the property on Ridge Road along the escarpment in upper Stoney Creek for $225,000 last April.
Three months later, Valeri sold the property for $500,000 to John Ng, son of Joe Ng, whose Hamilton-based engineering company has been a longtime supporter of the Liberals at the federal and provincial levels.
Valeri, who was Government House Leader prior to the election call, said there was nothing improper about his purchase or sale of the property.
“The transaction itself was conducted in a transparent fashion, with proper filings, proper disclosure,” said Valeri. “It was done with the advice of the (federal) Ethics Commissioner. “In fact, it was a real estate transaction like any other,” Valeri added. “I guess people will read into it what they want to read into it but I complied with all of the requirements and have done so in a very transparent manner.”
A spokesman for the Office of the Ethics Commissioner said he could not comment on Valeri’s financial transactions for privacy reasons but indicated that the Ethics Commissioner has not initiated an investigation of Valeri.
John Ng could not be reached for comment, and an attempt to contact him through his real estate lawyer was unsuccessful.
Joe Ng did not respond to numerous attempts by The Spectator to contact him. Valeri purchased the next-door property on April 29 for $225,000 from Leonard Davis, who had lived there for 50 years with his family. The property covers 0.25 hectares on Ridge Road, overlooking the edge of the escarpment. Set back from the road is a low-slung ranch-style house that appears to be in disrepair.
Davis, who now lives in a Stoney Creek nursing home, said health problems forced him to sell the house next to Valeri’s property. “My eyesight is so bad I can hardly see, so I had to get out of there,” said Davis, who is 76 years old.
He said he obtained opinions suggesting that his asking price reflected a fair market value for the property.
“I had it appraised by a couple of different real estate agents and it was close to what I got,” said Davis.
The 2005 property tax assessment for Davis’s former lot is listed as $201,000. The 2005 assessment for Valeri’s property is listed as $186,000.
Davis said he didn’t put the house on the market and he can’t remember if Valeri approached him about buying the property or if he approached Valeri about selling.
“(Valeri) was talking about needing some more property and that gave me a thought,” Davis said. “With my health and everything, I was going to have to move out of there and leave the house on its own, so that’s what kind of promoted it.”
The front yard of Davis’s former property now appears to be an auxiliary construction site for a house that is being built on Valeri’s property.
There are mounds of dirt, wooden pallets, construction materials and a portable toilet on the next-door lot.
A large new two-storey stone house is currently being constructed on Valeri’s property in front of an older split-level ranch-style house that has been the Valeri family home for more than a decade.
City records show that Valeri applied for the building permit in May 2003 and that it was eventually issued on May 2 last year.
The value of Valeri’s building permit is listed as $205,500.
Valeri said that Ng has been very accommodating in allowing construction materials to be stored on his property while the MP’s new home is being built.
He added that the adjacent home is currently vacant and he is not sure what Ng’s plans are for the property.
Valeri said he purchased the property next door because he intended to build his new house across the two lots but subsequently learned that the new home could be built on his original property.
“We were then approached (to sell the property) and basically the rest of it was handled by the lawyers,” said Valeri. “My concern was obviously compliance with the Ethics Commissioner. “They showed interest and I referred them to my lawyer,” Valeri added.
The MP did not put the property on the real estate market, and he did not indicate how the purchaser came to know that Valeri was interested in selling the property.
Three months after he purchased the property next door, Valeri sold it to John Ng for $500,000, an increase of $275,000 over Valeri’s purchase price.
Valeri said he made some improvements to the lot by burying some overhead wires and removing some poles, and that the $500,000 sale price fairly reflected the value of the property.
It’s not known if John Ng is connected to his father’s businesses.
Joe Ng’s numerous companies include JNE Engineering and JNE Consulting. The businesses employ more than 450 people in areas such as engineering, construction, consulting, automation, biotech and chemicals.
Ng has offices in Hamilton, Sault Ste. Marie, Pittsburgh, Fresno, Beijing, Shanghai and Hong Kong.
Valeri said that he went a step beyond what was required by the Ethics Commissioner when he sold the property to John Ng.
“I also required that the purchaser add a declaration that the purchaser had no contractual relationship or any other relationship with the federal government,” said Valeri, “in order to obviously ensure that this was a transaction that was transparent and complied with what the Ethics Commissioner was suggesting to me.”
Joe Ng’s engineering company has been a long-time financial supporter of the federal Liberals, with contributions totaling at least $16,000.
Valeri indicated that Joe Ng has contributed to his election campaigns in the past.
“Certainly I know that he has contributed to the Liberal party,” said Valeri.
In 1993, the largest single donation to the campaign of former Hamilton East MP Sheila Copps was a $5,500 contribution from Ng’s company.
That was the same year that Ng’s engineering firm won a large contract in China, with the help of a $4.5 million U.S. loan from the federal Export Development Corporation to the Chinese purchaser.
Ng’s company also benefitted from a special EDC loan in June 2002 to a Chinese bank that allowed Ng’s company to win a contract for a heating project.
Joe Ng has also participated in a number of Canadian trade missions.
He was listed as a participant in trade missions to China in 2005 and 2001, a Middle East trade mission in 1999, and a 1995 trade mission to South Korea, Thailand and Malaysia.
Valeri indicated that he has never been on a trade mission that included Joe Ng. Valeri was particularly angry that several documents related to the land sale have been posted anonymously on the Bourque Newswatch website.
“I think the bar has really been lowered in Canada with respect to the attacks that people are subject to in public life,” said Valeri.
“There’s an insinuation here and that seems to be why this was posted anonymously on a blog website,” he added.
Along Ridge Road past Tapleytown Road, Valeri’s neighbours are concerned excessive jumps in house prices will send their own property taxes spiralling out of control. Houses along that stretch back directly on the escarpment brow and range from upscale mansions to small bungalows and 1950s-style split-ranch homes.
All enjoy spectacular views of Stoney Creek and Lake Ontario.
Neighbour Bruna Canton she thinks Davis “should have gotten more” than what Valeri paid for it.
Canton knew Valeri paid $225,000 for the Davis house, but was unaware the Liberal politician had resold it.
“We all felt (Valeri) underpaid for it, but it was Mr. Davis’s decision,” she said yesterday. Canton is concerned homes in the area may sell for inflated prices and push up area property taxes.
“We know from past experience that people have tried to sell for inflated prices, and they haven’t got (their asking prices),” she said.
sbuist@thespec.com
905-526-3226
With files from Paul Morse, The Spectator
LIBERAL TRAIN WRECK PING
Bullshit alert!
This is a payoff, pure and simple.
The Liberal Party of Canada is indistinguishable from a criminal conspiracy.
Heads On Pikes!
"Please Mr. Martin, could we have more ...
smears, scandals & general Librano$ arrogance"
composite of polling results as of 01/12/06
Can it be seen on line anywhere?
Sorry, I don't know...
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