Electoral officer tells MPs of $1.3 million in suspect Tory campaign expenses

Electoral officer tells MPs of $1.3 million in suspect Tory campaign expenses

By: Tim Naumetz, THE CANADIAN PRESS

OTTAWA - The Conservatives were the only party in the last two federal election campaigns to conduct the kind of expense transfers with candidates that led to an investigation by the federal elections commissioner and a search-warrant raid on Tory headquarters, says Canada's chief electoral officer.

In his first public comment about thousands of dollars in cash transfers to 67 candidates, Marc Mayrand indicated the transactions may eventually put the Conservatives in violation of election spending limits by more than $1 million.

Mayrand's appearance at the House of Commons ethics committee Tuesday was also the first opportunity for Conservative MPs to question Mayrand directly about the advertising controversy after questioning his motives in Parliament and claiming someone from Elections Canada tipped news media to the raid last April.

Conservative MPs Pierre Poilievre and Scott Reid testily pressed Mayrand about an internal review he conducted in response to allegations that plans for the raid were leaked in advance.
Mayrand said only he, two of his top officials, the office of the elections commissioner and the office of the director of public prosecutions were aware beforehand. He said he was assured no one in his office talked to anyone outside Elections Canada before investigators from the commissioner's office, accompanied by RCMP computer specialists, arrived at the party headquarters.

Poilievre said Mayrand should have called in outsiders to determine where there was a leak, a possibility the Conservatives raised because media cameras and journalists arrived outside the party quarters in time to film the Elections Canada investigators.

"You've been very vigorous investigating our party," Poilievre told Mayrand. "Why would you consider it appropriate to investigate yourself?"

Reid demanded Mayrand provide the committee with what he described as "barely a sheet" of paper that consisted of the results of his internal review of the leak allegations.

Mayrand disclosed to the committee his office reviewed all campaign expense reports not just for the 2006 election, but also for the 2004 election, to compare spending and expense claims by all parties.

In neither of those campaigns did any other party transfer money to candidates, then back to their parties, or lack the necessary documents, contracts and records to prove the expenses were legitimately part of their national campaigns, which must report expenses separately from candidates under federal election law.

"Elections Canada has not identified any other transaction or group of transactions in which all of the factors were at play," he told the committee.

Liberal MP Dominic LeBlanc asked Mayrand whether he agreed that the $1.3 million in expenses the Conservatives attempted to assign to their candidates would have to be attributed to either the party or the candidates once the investigation and a separate Federal Court action are complete.

"There are decisions left to be made," said Mayrand. "One of them would be the attribution of expense."

If the advertising expenses are attributed to the party, it would be in violation of its $18.3-million election spending limit by more than $1 million and face possible fines and even jail terms for some party officials.

The party could also settle the violation through a compliance agreement, if there is a decision not to prosecute.