In and Outright Hypocrisy?

The Liberals have been trying to make gains from the so-called “In and Out scandal” in which they allege impropriety in the transfers of money from local Conservative election campaigns to the federal campaign for the purposes of funding national advertising.

Transfers of money from local to federal campaigns is of course legal as all parties do this (there is even a category for it on Elections Canada returns that all candidates, EDAs and political parties must file). Indeed, the Conservatives and the Liberals have a different tradition here: The Conservatives send their EDAs 10% of all the money the national party raises, and the Liberals tax their EDAs 40 some percent of their candidate’s Elections Canada refund. However, it is the channeling of local cash to the federal party to pay for advertising where the Liberals see red in the Tories’ blue campaign.

One of the most vocal critics of this alleged scheme has been Liberal MP Marlene Jennings of Notre-Dame-de-Grâce–Lachine. Here is a quote of hers from the House of Commons:

Mr. Speaker, the in-and-out financing scandal implicates at least six Conservative ministers, like the public safety minister and the foreign affairs minister. Their response? Dead silence.

The member for West Vancouver–Sunshine Coast–Sea to Sky Country [Blair Wilson] did the right thing. At the very first hint of any questions about his campaign he stepped aside so he could clear his name.

The independent investigation into the Conservative scheme has not been completed. Will the government demonstrate true leadership and demand resignations from its six ministers?

Let’s take a closer look at Jennings’ 2004 and 2006 Elections Canada filing:

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and 2006:

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Jennings’ 2004 election return shows a $300 expense for advertising paid to the Liberal Party of Canada and a $1500 expense for the same paid to “The Federal Liberal Agency of Canada”. The 2006 return shows a $11,206.86 expense for advertising paid to the Quebec wing of the federal Liberal Party.

The Liberals have alleged impropriety in the Conservative practice of transferring money from local campaigns to federal campaign for use by the federal campaign for “advertising”. Here, we see Jennings transferring sums of money to both the federal party and Quebec wing of the federal party for “advertising”. What sort of advertising services did the LPOC and LPOC(Q) provide for Ms. Jennings? It should be noted that Jennings also declared expenses that her campaign paid to her riding association for advertising, so what of these similar expenses paid to national HQ? Did Jennings pay the party to produce Marlene Jennings specific advertising, Quebec regional advertising or national advertising? What is the difference between each of the three if they were paid for by the official agent for Marlene Jennings?

When you look at other Quebec campaigns it appears that more than a few Quebec Liberal candidates including Stephane Dion bought about $11,000 or $4,900 of advertising from the Liberal Party of Canada in Quebec.

Is the LPOC an ad-agency or did they purchase advertising for their candidates like the Conservatives bought for their Candidates?

Of course, in my opinion, no laws have been broken here and if this shows that the Liberals were also involved in a so-called (by them) “In and Out scheme” the only things they are guilty of is hypocrisy.

Furthermore, why was this practice given a green light in the past for the Liberals by Elections Canada when it now raises questions by the federal agency. Are not all parties equal under the law?

Questions for Garth Turner

Sunday night, I broke the story that Garth Turner, Liberal MP for Halton was collecting funds from donors into a trust. As specified by Elections Canada, trusts are generally forbidden as one cannot pay out of a trust the many donations that went into a trust. Check the full story here.

Garth’s response was both predictable and unpredictable. Predictably, he alluded to some well-organized conspiracy that was out to get him and immediately claimed victim status. Unpredictably though, he acknowledged his mistake and has taken steps to significantly reconfigure how he will be collecting money in the future. However, there are significant questions that remain.

  • Since this comes on the heels of Liberal questions in the House about election spending, they have much to do to get their own campaign finances in order. This week, we’ve seen apparent campaign finance discrepancies by Bonnie Crombie (more on that soon), Blair Wilson and now Garth Turner. How can they criticize the Conservatives before they sort out their own affairs?
  • Since many cheques to Garth Turner were made out to “Garth Turner Campaign, in trust”, does this mean that he’ll have to return all of that money? All cheques should have been made out to the “Halton Federal Liberal Association”.
  • In April of this year, Garth held a fundraising event with former Liberal leadership candidate Ken Dryden. Garth wrote:

    “Tonight was also an important milestone in my local election campaign. We exceeded our fundraising goal and, in the past three weeks, have raised five times more funds than the local Conservatives did in an entire year. All those bag signs, arterials, stakes, wire frames, ties and pounders in my garage are now paid for in full. We have cash in the bank � enough to get seriously and immediately ballistic the moment the writ is dropped.”

    Ballistic or busted? Were these fundraising efforts for naught? If that campaign materials was purchased by a private account and not the one held by the Federal Liberal Riding Association, Garth cannot use these campaign materials.

  • This represents a huge oversight by Dion’s new czar of fundraising. Does this represent poor judgment on behalf of the Stephane Dion? Will Garth resign this position? What can be said of the fundraising health of the Liberal party if Garth has been directing it?
  • Garth claims that he transferred money from a business account to the Liberal Electoral Association. Last time I checked, this is not allowed. Ironically, Garth criticizes the Conservatives for transferring money between EDAs and the federal party (which is allowed). “In and Out” is it called? Or is this “Out to In”? I’ve lost track.
  • If the Liberal Electoral Association accepted money from this business account (as Garth claims) they would also seem to be in violation. Could this association become de-registered by Elections Canada?
  • Garth is right in that being an independent can be tough. Independents do not have riding associations (EDAs). They can raise money, but they cannot issue tax receipts. Garth writes:

    “When Mr. Harper threw me out of caucus, I sat as an indie for a number of months, during which people sent me money because they took pity on my soul”

    I hope these people don’t expect to get tax receipts. But really, now that Garth is a Liberal, what is the status of this money? He can’t transfer money from this “business account” (in trust) to the Liberal EDA.

  • What are the consequences of this oversight? If this gets investigated, will Garth step aside? Will Dion ask him to step aside?
  • In a past life, wasn’t Garth a finance guru? Wasn’t he Minister of National Revenue? Is this mistake oversight or a sophisticated financial operator pushing the envelope?

In and Out, Conservatives respond

A copy of a letter sent to the President of the Liberal Party Senator Marie Poulin and Executive Director Greg Fergus landed in my inbox tonight. It concerns Conservative Party assertions that statements made in a recent Liberal Party backgrounder on what they’ve named the “In and Out” scandal concerning the “Conservatives’ apparent scheme to violate election spending limits” are in fact defamatory. The Conservatives stress that “Chief Electoral Officer Marc Maynard…has not accused any of the candidates or agents of breaking the law”.

The letter concerns the defense of Michael Donison, Neil Drabkin, Andrew House, Aaron Hynes, Andrea Paine and Ian West. The letter states that “it is defamatory to suggest or imply that these individuals have engaged in illegal conduct”.

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In this document, found on the Liberal Party website, the Liberals seem to imply that rewards in the form of government jobs were received by candidates who participated in the scheme that the Liberals allege.

Liberal MP Dominic Leblanc stated,

“To date, we have learned that eleven of the former Conservative candidates and official agents implicated in this scandal were named to federal appointments or were hired in high profile government jobs. One has to wonder if there is a connection between their willingness to participate and employment by this Conservative government”

The Conservatives allege that such statements are libelous as the letter addressed to the Liberals reads, “In particular, it is defamatory to suggest or imply that the positions that these individuals have or have had on Ministers’ staffs are “rewards” for having engaged in illegal conduct.”

The Conservatives seem to assert that the Liberals must prove that their accusations are true or else the Grits have libeled the aforementioned individuals.

Please read Steve Janke’s groundbreaking posts concerning this story, here, here and here.