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Naber Specialty Grains Ltd.: producers invited to make claims
June 1, 2016 – Winnipeg, Manitoba – Canadian Grain Commission
Today, acting Chief Commissioner, Jim Smolik announced that the Canadian Grain Commission is commencing the claims process to compensate producers who were not paid for their grain deliveries by Naber Specialty Grains Ltd.
Naber Specialty Grains Ltd. was licensed by the Canadian Grain Commission to operate a primary grain elevator in Melfort, Saskatchewan until May 8, 2015. It was placed into receivership on June 18, 2015 leaving unsatisfied obligations to western Canadian grain producers.
Grain producers who are owed money for grain delivered to Naber Specialty Grains Ltd. may be eligible for compensation under the Canada Grain Act, and should contact the Canadian Grain Commission.
- Licensed grain companies are required to post security in the form of a bond, letter of credit, cash deposit or payables insurance to cover their potential liabilities to grain producers.
- They are also required to report their producer liabilities to the Canadian Grain Commission on a monthly basis. This monthly report is used to determine security requirements relative to potential producer liabilities.
- If a licensee chooses not to report accurately, the Canadian Grain Commission may not hold sufficient security to pay 100% of the outstanding liabilities.
- If a company is unable to pay producers, this security is divided on a prorated basis among all eligible claimants owed money for their grain.
- Eligible claims represent the value of grain delivered to Naber Specialty Grains Ltd. for which a Primary Elevator Receipt has been issued to producers within the 90 days prior to May 9, 2015.
- Eligible claims represent the value of a cash purchase ticket or cheque issued to a producer that ends 30 days after the day on which it was issued and has not cleared the bank.
- A claim will be deemed eligible for 90 days maximum from the date of grain delivery, or 30 days maximum from the date of issuance of a cash purchase ticket or cheque. The lesser of these two time periods applies.
“We have uncovered what appear to be irregularities in producer liability reports provided by Naber Specialty Grains Ltd. to the Canadian Grain Commission. As a consequence, security posted by the company to compensate grain producers will be insufficient. We are consulting with the Royal Canadian Mounted Police’s Criminal Operations Section to review possible violations of the Canada Grain Act.”- Jim Smolik, Acting Chief Commissioner
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Canadian Grain Commission
Canadian Grain Commission
The Canadian Grain Commission is the federal agency responsible for establishing and maintaining Canada’s grain quality standards. Its programs result in shipments of grain that consistently meet contract specifications for quality, safety and quantity. The Canadian Grain Commission regulates the grain industry to protect producers’ rights and ensure the integrity of grain transactions.
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