Agency Costs: Update From North of 49th Parallel
| Apr 2nd, 2007 | Filed under: Hedge Fund Regulation | By: Alpha Male |
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Just in case anyone was left with the impression that pension funds are immune from agency costs after reading last Thursday’s post, check out what the pension plan for Canada’s famous “Mounties” is accused of. According to reports by national TV network CTV on Friday, allegations against the multi-billion plan include:
“Of the 65 people who worked at the pension division, 49 were related to senior RCMP members. In some cases, the nepotism involved entire families. Senior RCMP members used pension funds for golfing trips to destinations like St. Andrew’s-by-the-Sea, N.B. In one email exchange, resort employees at St. Andrew’s-by-the-Sea explained an unusual billing structure: ‘The purpose of this is to hide the golf rates in the room rates and to expense the golf,’ the email reads.”
A timely lesson in how inefficiencies aren’t confined to those dastardly mutual funds.
