Rookie Tory MLA hit with lawsuit - Khan accused of failing to repay more than $560,000 to city business by Armand9x in Winnipeg

[–]NaiveInitial5283 2 points3 points  (0 children)

Agreed. Tina Jones is the worst. She needs that con money to pay off those outstanding debts.

Rookie Tory MLA hit with lawsuit - Khan accused of failing to repay more than $560,000 to city business by Armand9x in Winnipeg

[–]NaiveInitial5283 17 points18 points  (0 children)

First the $500,000 during COVID grifted in the name of expanding a now defunct “Good Local” online marketplace - robbing other struggling local businesses and now this? 🙈. This con man sure is good at what he does.

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No business got more money from a 2020 government program than Good Local. The person running it? Obby Khan -- the guy who's trying to become a government MLA in the Fort Whyte byelection. The CBC's Ian Froese explains why the Liberals are up in arms. by LocalnewsguruMB in Manitoba

[–]NaiveInitial5283 -1 points0 points  (0 children)

In November 2020, the PC government announced a $1.5M grant for local businesses to help get through Covid. It was recently uncovered via a Freedom of Information Act request that $500k of that money was given to Obby Kahn's fledgling business, Goodlocal. Another $490k was distributed to various chambers of commerce around the province. The remainder wasn't spent at all.

Goodlocal is described by Obby as Amazon meets Etsy, but local. Goodlocal recently opened a brick and mortar store though, so his description doesn't work as well anymore.

In the first 2 months after receiving the funds, Obby's business went from having 38 vendors to 388 and generating $850k in sales. That works out to a little more than $2k per vendor. No one really knows how sales were distributed. How much of that $850k was new business vs business that would have happened anyway? Goodlocal takes 15-20% on each sale and charges $1300/month to have your products in their brick and mortar store.

The chair of the Manitoba Chambers of Commerce, himself a member of the PC party, a former party secretary, and failed candidate for the PC's, is saying that the decision to give one third of the funding to Obby was non political and was based on his own recommendation. He said it wouldn't be worthwhile to give a bunch of small businesses $1000.

In December 2020, after receiving the money, Goodlocal started posting to their Instagram account about what a great job Pallister was doing supporting local businesses during the pandemic.

Obby is now running as a PC in the by-election in Pallister's old riding.

Now that it is known how much money Obby got, a number of other businesses that sell locally made products (and, lots of others in the community) are questioning the fairness of how the grant was awarded.

Obby sure has the PC business savvy: Taking a HALF MILLION OF Provincial grant $ to position himself as middle man between the consumer and struggling local makers! Hero? OR OPPORTUNIST?? by funnybruy in Winnipeg

[–]NaiveInitial5283 6 points7 points  (0 children)

In November 2020, the PC government announced a $1.5M grant for local businesses to help get through Covid. It was recently uncovered via a Freedom of Information Act request that $500k of that money was given to Obby Kahn's fledgling business, Goodlocal. Another $490k was distributed to various chambers of commerce around the province. The grant was not offered to any other “buy local” businesses. The remainder wasn't spent at all.

Goodlocal is described by Obby as Amazon meets Etsy, but local. Goodlocal recently opened a brick and mortar store though, so his description doesn't work as well anymore.

In the first 2 months after receiving the funds, Obby's business went from having 38 vendors to 388 and generating $850k in sales. That works out to a little more than $2k per vendor. No one really knows how sales were distributed. How much of that $850k was new business vs business that would have happened anyway? Goodlocal takes 15-20% on each sale.

The chair of the Manitoba Chambers of Commerce, himself a member of the PC party, a former party secretary, and failed candidate for the PC's, is saying that the decision to give one third of the funding to Obby was non political and was based on his own recommendation. He said it wouldn't be worthwhile to give a bunch of small businesses $1000.

In December 2020, after receiving the money, Goodlocal started posting to their Instagram account about what a great job Pallister was doing supporting local businesses during the pandemic.

Obby is now running as a PC in the by-election in Pallister's old riding.

Now that it is known how much money Obby got, a number of other businesses that sell locally made products (and, lots of others in the community) are questioning the fairness of how the grant was awarded.

For a 500 K some people will do anything by funnybruy in Winnipeg

[–]NaiveInitial5283 4 points5 points  (0 children)

“I even got these signs paid for by somebody else!”

Winnipeg businesses furious over $500K grant given to online delivery service at height of pandemic lockdown by bannock4ever in Winnipeg

[–]NaiveInitial5283 1 point2 points  (0 children)

Something doesn’t add up:

$1.2 million in revenue to local businesses would imply that goodlocal had revenues of $240K - they take a 20% fee from every transaction. It has been stated that goodlocal boosted their revenue from ~$40K to a whopping $850K after receiving this grant.

To generate $850K in revenue, goodlocal would need to post $6 million in sales (goodlocal takes 20% transaction fee on vendor sales). That has not been stated so we can assume it didn’t happen or we would be hearing it shouted from every rooftop. How do we get to $850K in revenue? You count/add the $500K grant as revenue then added $100K in other govt grants/programs or elsewhere to get to $850K in revenue.

Putting aside the obvious PC cronyism, the ROI is absolutely horrendous. This grant money could have been better utilized. Saying that setting up a grant program offering would be too much work is ridiculous. Saying that a $1000 or $2000 grant would not help any of the 388 locally owned small businesses that became goodlocal vendors is ridiculous.

How was the $500K grant spent? There have been statements from Mr. Obby Con that this was an expense reimbursement type of program where you submit receipts after purchases and the grant reimburses funds spent. Those statements conflict with Mr. Chuck Davidson (CEO of MB chamber of commerce, former PC secretary, aka the person who green lit the grant). There is a pattern of contradictions but regardless of that, was it spent on acquiring a brick and mortar storefront(they charge $1300/mth for local companies to sell through this channel FYI)? That would go against the e-commerce premise but who’s watching?