Celsius Network still makes the Caisse de dépôt look very bad

Governance pundits wonder how the Caisse de dépôt was able to invest $200 million in Celsius when it was on the brink of bankruptcy, according to Vermont tax authorities.

• Also read: Banned Accounts: Celsius Network customers were able to get their marbles back

• Also read: A Caisse partner is accused of setting up a Ponzi scheme

• Also read: Cryptocurrency: a v.-p. de la Caisse ran a company associated with the CEO of Celcius

“What kind of due diligence does the Caisse do? If she made a mistake at this company, did she make it at other companies? asked Robert Pouliot, teacher at ESG-UQAM.

“If there are many other cases like this, trust in the Caisse de dépôt can be undermined,” fears Donald Riendeau, CEO and co-founder of the Institute for Confidence in Organizations (ICO).

“The Vermont authorities’ report states in black and white that Celsius made false statements,” said Saidatou Dicko, professor of accounting science at the University of Quebec at Montreal (UQAM).

Last July, Celsius Network in the USA was accused of having set up a “Ponzi scheme”.

“It’s not possible that the experts at the Caisse didn’t see that this was a company in poor financial shape,” observes governance expert Saidatou Dicko.

“rigorous analysis”

Frequently questioned by Le Journal, the Caisse always wanted to use the money from Quebecers’ woolen socks to reassure them.

“Every investment at the CDPQ is subjected to a rigorous analysis,” we were assured.

Last March, the Quebec Auditor General’s report was scathing in its two comments on the institution.

“The framework for the prevention and detection of certain risks that could damage the fund’s reputation needs to be strengthened,” it read.

“Key steps in the investment process have not always been taken in accordance with the policies and guidelines for preventing and identifying significant risks, particularly those related to conflicts of interest,” she added.

in October 2021, The newspaper had asked the Caisse for the risk assessment report on investing in Celsius, but they had flatly refused to provide it.

“You will certainly understand that the document referred to is a report, the content of which contains information that provides insight into the CDPQ’s investment strategies,” replied Claude Mikhail, Director of Administrative Law and Head of Access to information.

Accompanied by The newspaper The Fund declined to comment on the case yesterday.

“We continue to work on our legal options,” spokeswoman Kate Monfette said, hinting at a possible outcome in court.

last July, The newspaper reported that a vice president of the Caisse de depot et placement du Québec ran a company in which Celsius’s big boss Alex Mashinsky invested, but which the Caisse denied any “real or apparent conflict of interest.”

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