CGC To Consult RCMP Over Venture Seeds

WINNIPEG - Sep 2/04 - SNS -- The Canadian Grain Commission (CGC) revoked the grain dealer license held by Venture Seeds Ltd. of Brunkild, Manitoba after the mustard seed dealer was placed in receivership August 31. The receiver is Deloitte & Touche.

Grain producers owed money for grain delivered to Venture Seeds Ltd. may be eligible for compensation under the Canada Grain Act.

"Our auditors have uncovered what appear to be irregularities in producer liability reports provided by Venture Seeds Ltd. to the CGC. Therefore, we intend to consult the RCMP concerning possible violations of the Canada Grain Act," said Chief Commissioner Chris Hamblin.

Under the Canada Grain Act, licensed grain companies are required to post security in the form of a bond or a letter of credit to cover their liabilities to grain producers. They are also required to report their producer liabilities to the CGC on a monthly basis. This monthly report is used to ensure sufficient producer security is in place.

Hamblin said it appeared that the $150,000 in security posted by the company to compensate grain producers will be insufficient. While further review is necessary, it is likely eligible producers will receive compensation for less than 50% of what they are owed.

"This situation is clearly unacceptable," said Hamblin. "We are doing everything we can to get to the bottom of it."