Edmonton-based canglobe International Inc., which trades on the lowly OTC Bulletin Board in the U.S., appears to have little going for it except, perhaps, the presence of former political luminary Don Getty.

Getty, 71, served two terms as Alberta premier. He has been on the boards of blue-chip companies such as Royal Bank of Canada, Nova Corp. and Interprovincial Pipe and Steel Co.

In December, Getty became chairman of Canglobe, which had no active business as of March 31. Canglobe says it will acquire a medical-waste treatment facility in Beiseker, Alta., a minority interest in a software-development firm in Colorado and a 50% stake in an Alberta company with rights to certain soil remediation technologies; no financial statements have yet been provided. Meanwhile, Canglobe’s shares languish at 45¢, for a market value of about US$8 million.

Many investors may assume that a prominent ex-politician wouldn’t lead a junior company unless it had great potential, but that is a dangerous assumption.

Who can forget Harvard Industries, which announced in 1993 that former prime minister John Turner would serve as its chairman and help further its ambition to develop the world’s finest french-fry vending machine? The stock zoomed and eventually collapsed as the dream went up in smoke.

Former Ontario premier David Peterson thought he’d found a winner when he joined the board of YBM Magnex International Inc., which was supposedly making magnets and bicycles in Eastern Europe. The stock leaped to $20 in early 1998 before U.S.
authorities discovered it was infested with Russian mafia.

In 1991, former British Columbic attorney general Bud Smith became a director and big promoter of Alberta Stock Exchange-listed Farm Energy Ltd., which was developing a system to convert cereal grains into ethanol and high-protein mash for cattle. A few years later, Getty joined that board and became chairman of its executive committee. By the end of 1999, the company was insolvent.

There are many reasons to be skeptical of Getty’s latest gambit. One is Canglobe majority shareholder Bert Lavallee. In January, the Alberta Securities Commission alleged he committed securities offences relating to Genoray Advanced Technologies Ltd., also listed on the OTC Bulletin Board, and American Technologies Exploration Corp., listed on the more lowly Pink Sheets in the U.S. Lavallee denies the allegations and a hearing is pending.

Asked how Getty joined the Canglobe board, Lavallee replied: “I don’t know how that worked. I didn’t ask him.” Pressed further, he said, “I probably do, but I don’t want to discuss that. I’m not here to be cross-examined.”

In mid-April, Getty filed a report disclosing he had acquired one million shares. James Baker, a Canglobe director, said Getty got the shares from a third party, but declined to say who, or whether Getty paid for them.

Getty, who was on vacation, was not keen to answer any questions. He said Lavallee was “one of the people” who asked him to be chairman. Getty said he knew nothing about Lavallee’s regulatory problems, and hung up before he could be asked about the one million shares. IE