The Senate’s independent ranks got a little bigger last week as Conservative Senator Mike Duffy became the latest member of the Upper Chamber forced to leave his party’s caucus over ineligible housing allowance claims. The scandal has not only left the former CTV Hill journalist’s reputation in tatters, but the Senate itself appears to have lost any shred of credibility it may have had left with the public, say observers.
Conservative Senator Pamela Wallin—currently being audited by accounting firm Deloitte for more than $320,000 travel expense claims since joining the Senate in 2009—followed suit soon after, announcing by press release the evening of Friday, May 17, that she was "recusing" herself from the Conservative caucus.
The scandal has not only left the two former CTV journalists' reputations in tatters, but the Senate itself appears to have lost any shred of credibility it may have had with the public.
Conservative strategist and Summa Strategies Vice President Tim Powers described the scandal as “the darkest days of the 140-plus year history of the Senate.”
“I think there are Senators who make immense contributions, whether it be on the mental health front like Marjory LeBreton, or Hugh Segal, and Romeo Dallaire, when it comes to advocacy around combat issues and child soldiers,” Mr. Powers told The Hill Times. “All of that is obscured by the actions and behaviour of a few—but it is not just obscuring, it’s almost becoming an eclipse.”
The Prime Minister’s Office was also implicated in the scandal last week after CTV reporter Bob Fife broke the news that Nigel Wright, chief of staff to Prime Minister Stephen Harper (Calgary Southwest, Alta.), had cut a cheque for $90,172 so that Sen. Duffy could repay ineligible housing expense claims made over the four years since he was appointed to the Senate on Mr. Harper’s recommendation.
Mr. Wright, who claims to have made the transfer without the Prime Minister's knowledge, resigned as Prime Minister Harper's chief of staff at 8:38 a.m. on Sunday, May 19. Mr. Wright has been replaced by Mr. Harper's executive assistant, Ray Novak.
On May 9, the Senate’s Internal Economy, Budgets, and Administration Committee ordered Senators Patrick Brazeau and Mac Harb to repay more than $48,000 and $51,000, respectively, in housing allowance claims made on primary residences within 100 kms of Parliament, which the two Senators claimed were their secondary residences. Both Senators plan to challenge the legality of the order.
Sen. Duffy reportedly used funds from Mr. Wright to repay the more than $90,000 in his own ineligible housing allowance claims. On April 19, the Senate’s Internal Economy Committee issued a press release that Sen. Duffy had reimbursed the Receiver General of Canada for $90,172.24 in living expense claims.
Norman Spector, who served as chief of staff to former prime minister Brian Mulroney from 1990 to 1992, described the Senate as “mired in deep mud.”
“I think it just gets muddier, muckier, dirtier, and smellier, and all the rest,” Mr. Spector said of the ongoing scandal. “The worst part of it is that there’s really not much we can do about it... [N]obody’s going to open the Constitution in this situation.”
Questions have been raised over whether or not the Prime Minister was aware of the transaction between his chief of staff and Senator Duffy. Apparently, the Prime Minister didn’t know about it.
Mr. Spector said that it would be “extraordinary” if Mr. Wright agreed to cover Mr. Duffy’s expense repayment without the Prime Minister’s knowledge.
“There are a lot less consequential matters that a chief of staff would seek direction on or inform the Prime Minister about,” Mr. Spector said. “I can’t imagine doing anything of this consequence without informing the Prime Minister, and I can’t imagine doing anything like cutting a cheque when I was a chief of staff—a personal cheque at a time when a Senator is being investigated.”
But Conservative sources jumped to the defence of Mr. Wright when The Hill Times questioned whether or not the cheque was written without the Prime Minister’s knowledge.
“In the case of Nigel, it’s his money and he can spend it in whatever way he likes and if he wants to help out somebody he knows, in the case of Mr. Duffy, and that can be done in a legal and appropriate matter, that’s okay,” said Mr. Powers.
The transaction does not sit well with the federal conflict of interest and ethics commissioner or the Senate ethics officer, however. Conflict of Interest Commissioner Mary Dawson announced that she was investigating the transaction on May 15. Senate Ethics Officer Lyse Ricard is requiring all Senators to update their disclosure of gifts under the Senate’s Conflict of Interest Code. The RCMP confirmed that it was investigating the Senate expense claims prior to the report on Mr. Wright’s involvement in Sen. Duffy’s case.
The Hill Times contacted former Senate ethics officer Jean Fournier, who was reluctant to comment on the “fluid, confusing, and sensitive situation”
However, in an email he stated: “Given the various issues involved, the government should ask someone with the intelligence and experience of the Honourable Frank Iacobucci to inquire into and report on matters regarding Senator Duffy’s expenses.”
Mr. Fournier said that it was “essential” for the government to clear the air “ASAP.”
One Conservative campaigner, speaking on a not-for-attribution basis, told The Hill Times that Sen. Duffy had approached Mr. Wright with “a sob story” that he was dying and near bankruptcy and was concerned with leaving debts to his wife.
“Nigel’s a man of meagre tastes and incredible means, and I think he just decided he’d rather make this go away,” the source said.
Mr. Wright, who has been on leave from his position as managing director of the Onex Corporation asset management firm since 2011 to run the Prime Minister’s Office, is praised as “a genius” in Conservative circles, and a cut-throat neoconservative by opponents. The 50-year-old graduate of Harvard and University of Toronto law schools is also known to be a dogmatic Catholic and long-distance runner.
The source described Mr. Wright as “tireless, focused, principled,” and “a movement Conservative.”
When asked why the Prime Minister’s chief of staff would go to such great lengths to protect Sen. Duffy as he increasingly became a liability to the government, the source replied: “He’s very popular with the old lady set. Very, very, very popular with the old lady set. He’s been a huge campaign and fundraising source in the same way that [Julian] Fantino is.”
The source said that Conservative Senator Pamela Wallin was prized by the government for the same reason.
“Super popular, lots of campaigning, lots of fundraising. If you took the Senate and ranked it’s most well known, high-profile members, [Duffy and Wallin] would be in the top five,” the source said.
But in March, when Sen. Duffy repaid the expense claims, he also stopped cooperating with the independent Deloitte auditors.
Now Sen. Duffy’s travel expense claims during the 2011 election campaign are under scrutiny as it appears the Senator claimed travel expenses and also billed Conservative candidates’ campaigns for expenses incurred during campaign stops.
Mr. Spector said that Mr. Duffy played “a pretty major role” in Mr. Harper winning a majority government on May 2, 2011.
“He would host some of those town halls, he showed great loyalty, Duffy did, great energy, as did Pamela Wallin, in bringing their credibility and their celebrity—I guess you could call it that—to the cause of securing a majority government,” he observed.
For the period of March 3, 2011 to May 31, 2011, Sen. Duffy made $12,404.64 in “regular” travel expense claims and $5,556.45 in “other” travel expenses—a total of $17,961.09 in travel expense claims over a 90-day period.
Over the same time period, Sen. Wallin made $377.68 in “regular” travel expense claims and $25,870.07 in “other” travel expense claims over the same time period—a total of $26,247.75 in 90 days.
Senators’ travel to their province or territory is classified as a “regular” travel expense, while travel outside a Senators’ province is classified as “other” travel.
“Sen. Duffy can never speak in front of a group of old ladies again. They don’t even know that $90,000 cheques exist,” the Conservative source said. “Step one is he gets kicked out of caucus, and step two is the Senate’s obliged to start burning the furniture to save itself. Anybody who’s accused of anything—it’s going to be full investigations and papers until they’re gone, one by one. It’s fighting gangrene now, because the Senators know how bad this is, so they’re going to just start cutting parts off, piece by piece.”
Original Article
Source: hilltimes.com
Author: CHRIS PLECASH
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