Insider Trading Charges Show Risk of CNOOC Deal

On Friday, the United States’ Security and Exchange Commission filed a complaint in court against Hong Kong based investors for insider trading. Zhang Zhi Rong – one of the wealthiest men in China – along other investors are alleged to have made $13-million through inside knowledge of the proposed buyout of Canadian company Nexen by the state owned China National Offshore Oil Corporation (CNOOC).

Zhang Zhi Rong is chairman of Rongsheng Heavy Industries Group, which entered a strategic cooperation agreement with CNOOC in 2012.

On top of these new allegations of insider trading, we have no firm commitments from the company on keeping value added jobs in Canada, consulting first nations or addressing environmental concerns.

Its time Conservatives agree to a thorough and transparent review of this takeover – including public hearings before the Standing Committees on Natural Resources and Industry – and demonstrate how the deal is in Canada’s net benefit.

Under previous foreign takeover agreements, Canadians have seen job guarantees and other promises from foreign companies collapse – with no consequences from the government. But when it comes to protecting Canadian jobs and industry, New Democrats can be counted on to hold the Conservatives to account.