Billion Dollar Blunder: Canadian Government stays quiet while American financial giant takes control of the Canada Student Loans Program.

A large US company may be profiting from the Canada Student Loans Program, by being able to divert hundreds of millions of Canadian taxpayer’s dollars out of the Canadian economy. Vista Equity Partners, whose CEO is American billionaire Robert Smith, assumed control of the Canada Student Loans Program in 2017 by purchasing the existing service provider, DH Corporation, with little acknowledgment of the change by the Canadian Government of the negative impact this would have on Canadian students and taxpayers. With the lack of transparency surrounding the Student Loan contract, it begs the question; is the Canadian Government complicit?

In April 2017, the Canadian Competition Bureau noted the purchase of DH Corporation, the service provider of the Canada Student Loans Program, by two different Vista Equity Partners investment funds: Vista Fund IV and Vista Fund VI.

Reference Material: Canada Competition Bureau Report

Then, Investment Canada noted that a different company, Tahoe Canada Bidco, Inc., based in Austin, TX, USA, purchased DH Corporation in June 2017. So here we have 2 different companies who could have purchased DH Corporation.

Reference Material: Investment Canada Report

Tahoe Canada Bidco Inc v DH Corporation

“The Commission has approved, without conditions, the proposed intermediate merger whereby Tahoe Canada Bidco Inc (Bidco) intends to acquire DH Corporation (DH).

Bidco, a UK company, has been formed for the purposes of the proposed transaction. Bidco is controlled by Misys Limited, a UK private company, which is controlled by funds managed by Vista Equity Partners LLC. Bidco does not control any firms. Misys is, among others, a provider of software and related services to the financial services industry.“

Tahoe Bidco is the company that appears as an investor for the Investment Canada Act’s review. Tahoe though was not the company that Vista submitted to the Competition Bureau; in this case Vista claimed the investor was two of its funds.

Reference Material: Tahoe Bidco Takes Over DH Corporation

Adding further ambiguity to the question of ownership, Public Works and Government Services Canada stated in March 2018 that DH Limited Partnership is the service provider to the Canada student Loans Program and holds that contract.

Reference Material: Canada Buy & Sell Report

And yet, as this next document shows, DH Limited Partnership was not a real (active) company when this federal contract began in March 2018. In the current lawsuit against them, the attorney for the defendants (Chris Madill, with Stewart McKelvey Law Office in Halifax) supplied The CFW Group’s attorney (Peter Coulthard, with Sealy Cornish Coulthard in Halifax) with a document saying DH Limited Partnership, the private company that is the federal contract holder and service provider to the Canada Student Loans Program was dissolved months prior to the contract activation, in November 2017.

Reference Material: DH Limited Partnership Dissolution Document

Furthermore, the primary executives who are directly involved with administering the Canada Student Loans Program all claim in their LinkedIn profiles that they are working for the company “Finastra”. Finastra was created in Great Britain by US-based Vista Equity Partners and is not publicly traded.

Here is a list of DH executives who are involved and overseeing the Canada Student Loans Program administration who have been patched over to this foreign company, Finastra.

So, who exactly is it that is administering the Canada Student Loans Program through it’s National Student Loan Service Center (NSLSC)? The government says it is the publicly traded company “DH Limited Partnership”, but that company was dissolved. When one goes to the DH website to inquire about Canada student loans and their administration of it, the viewer is redirected to a private and not publicly traded company – Finastra.