ConsRconž
unread,May 15, 2013, 4:32:31 PM5/15/13You do not have permission to delete messages in this group
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I think we now know where at least a little bit of the 'missing $3.1
billion' of taxpayer money went.
___________________________________________
May 15, 2013
Harper's chief of staff personally repaid Mike Duffy's $90,000 in Senate
expenses
PMO and Conservative party deny taxpayer or party funds were used to pay
back $90,000 in claims
Nigel Wright, Prime Minister Stephen Harper's chief of staff, personally
funded Senator Mike Duffy's repayment of more than $90,000 in
improperly-claimed living expenses, the Prime Minister's Office says.
It stands as a gift to the Senator from Mr. Wright, a wealthy
businessman who made his money on Bay Street.
It's a highly unusual move for a political staffer to dip into their
personal savings to resolve a public ethics problem.
Conflict of Interest and Ethics Commissioner Mary Dawson's office said
she is reviewing Mr. Wright's cheque-writing to see whether he met his
obligations under the Conflict of Interest Act.
The PMO defends the move, insisting it broke no rules, even though the
Senate's code of ethics says "senators are prohibited from accepting
gifts that could reasonably be seen to relate to their position."
The Harper government says it believes the cheque from Mr. Wright
resolved the matter.
"The government believes that taxpayers should not be on the hook for
improper expense claims made by Senators," Andrew MacDougall, director
of communications for the PMO, said.
"Mr. Duffy agreed to repay the expenses because it was the right thing
to do. However, Mr. Duffy was unable to make a timely repayment," he said.
"Mr. Wright therefore wrote a cheque from his personal account for the
full amount owing so that Mr. Duffy could repay the outstanding amount."
People with knowledge of the matter told The Globe and Mail Mr. Wright
stepped in because Mr. Duffy appeared unable to make the payments and
was worried about his health.
They said there is no expectation that this money be repaid.
Mr. Duffy was concerned about his ability to cover the funds, a person
with knowledge of the matter said, adding he was concerned what would
happen to his wife "if he dropped dead of a heart attack."
Mr. Wright and Mr. Duffy have known each other since the 1980s when Mr.
Wright worked in Prime Minister Brian Mulroney's office and Mr. Duffy
worked for CTV as a journalist.
Mr. Duffy repaid the money in March � well before a senate committee
report concluded in early May that he was right to reimburse these
living expenses. It was based on an audit of the claims which found
Senate rules were unclear on the matter.
CTV News reported Tuesday that two months before the audit was released,
Mr. Wright had a PMO lawyer work on a letter of understanding with Mr.
Duffy's lawyers. It said the deal involved the senator reimbursing
taxpayers in return for financial help and a promise from the government
to go easy on him.
In a Feb. 20 email cited by CTV, Mr. Duffy said Mr. Wright worked out a
"scenario" where all of his claimed living expenses would be covered,
including "cash for the repayment."
It was Feb. 22 when the PEI senator announced in a TV interview that he
would reimburse the money, saying that while he still believed he did
nothing wrong, the controversy had become a distraction from his work as
a senator. He repaid $90,172 in March.
Records show that Duffy is carrying a $360,000 mortgage on his
Ottawa-area home.
The Senate Conflict of Interest Code requires Senators to disclose all
gifts over $500 within 30 days. The code also includes a general
statement on gifts that says "neither a Senator, nor a family member,
shall accept, directly or indirectly, any gift or other benefit, except
compensation authorized by law, that could reasonably be considered to
relate to the Senator's position."
The rule is followed by one exception. A gift can be accepted if it is
"received as a normal expression of courtesy or protocol, or within the
customary standards of hospitality that normally accompany the Senator's
position."
An official with the Senate ethics office declined to comment on Mr.
Duffy specifically. However the official said any report of a gift would
be disclosed online. Mr. Duffy has not updated his public conflict of
interest disclosure since Sept. 27, 2012.
NDP ethics critic Charlie Angus said the payment from Mr. Wright signals
the need for an independent investigation into how Senate expense claims
have been handled.
"These are really serious allegations, because it suggests a direct
political and financial interference from the Prime Minister's Office
into a major spending scandal in the Senate," Mr. Angus said.
Mr. Duffy is one of three senators whose expense claims were audited
after media reports suggested they were improperly collecting a housing
allowance for the time they spend working in Ottawa. Senators are
allowed to claim up to $22,000 per year in living expenses if their
primary residence is more than 100 kilometers away from Ottawa, but all
three spend most of their time in the National Capital Region.
The auditors found that the Senate's rules on residency were not clear
enough to determine if rules were broken. But the Senate's internal
economy committee, which requested the audits, ordered them to return
the money to the Senate.
Senator Mac Harb, who quit the Liberal caucus after the committee's
reports were released last week, has been ordered to repay $51,482, and
the committee has said that amount could increase significantly. Patrick
Brazeau, a former Conservative Senator who is now an Independent, was
ordered to repay $48,744. Both Mr. Harb and Mr. Brazeau have indicated
they will fight the committee's orders.