Insider Outsourcing at the CBC?

Late last year the CBC sold international distribution rights to 700 hours of it's programming to British-based ContentFilm for an 'undisclosed amount.' It is actually not quite as simple as that. From the Tea Makers:

"Steve Billinger says no Canadian distributors wanted the package. Robert Lantos said he would have taken it. Billinger says the Board of Directors knew about the deal. Some Board members say they learned of the sale after the press release was issued."

It is unclear whether the board knew about the sale before hand, and it would appear that when they say that "no Canadian distributors wanted the package" what they mean is that Canadian distributors were never told about the package or given an opportunity to bid on it. From the Globe and Mail:

"The deal angered many in Canada's entertainment sector who argue the sale of a publicly funded asset should be an open tender to ensure the best price.

On the show, Mr. Stursberg said the CBC made the deal with Fireworks/ContentFilm (which has since been tentatively sold to Toronto-based Peace Arch Entertainment) because "we did not see any [Canadian] company specialized in selling TV programs that was even remotely as well-capitalized, with as big a catalogue, or as extensive set of international relationships, to be able to sell these programs."

Well, it's not entirely accurate to say that 'Canadian distributors didn't know'. It would appear that one did. Again from the Tea Makers

You might remember that 2 days after we sold the catalogue of still-undisclosed shows to British-owned ContentFilm, they were bought by Toronto-based Peace Arch. The Globe points out that Fred Fuchs was a senior vice-president at Peace Arch before coming to the CBC.

Fred Fuchs, in case you don't know, is the Executive Director, Arts and Entertainment Programming, CBC Television. The Toronto Star raises still more questions about the deal.

A titillating footnote: Just two months ago Gary Howsam, the CEO of Peace Arch, had to take an extended leave of absence because he's facing fraud charges in the United States.
A lingering question: If the CBC knew that Peace Arch was going to be taking over ContentFilm, why negotiate a sale to the British instead of waiting to deal directly with a Canadian company?

None of this, at any rate, seems to be going away. From Today's Globe and Mail:

"My problem is he never mentioned the outsourcing of the CBC distribution library! Not once," Mr. Emerson says in a response to Mr. Stursberg. "You say ContentFilm came to you? How did they know to do this? I didn't know the CBC Library was in play."
Oasis is one of several Canadian companies that is angered it could not bid on the catalogue, which includes 132 titles. Mr. Emerson calls his company "the most obvious candidate in Canada" to buy the assets, adding "this stinks to me."

And (also from the Globe)

"The nasty exchange comes as the CBC board is set to approve the deal, according to sources close to the broadcaster, rather than provoke a battle with new CBC president Hubert Lacroix over stalling the sale."

I can't imagine that CBC Management didn't operate within the letter, if not the spirit, of the law on this. However, given the self-contradictory statements, the unusual timeline of events, and the connection between Fuchs and Peace Arch It would appear that someone in Ottawa might want to have an investigator look over the deal and the timeline before anything is finalized.