Ethics watchdog opens Morneau probe

CONFLICT CONCERNS

personal finances. Late Friday, they released her response that confirmed an investigation.

“In light of the information provided in your letter as well as the information gathered by my office, I am of the view that I have reasonable grounds to commence an examination under subsection 45(1), and have so informed Minister Morneau,” says a letter to the NDP’s Nathan Cullen, dated Nov. 10, 2017. A similar letter was sent to Conservative MP Pierre Poilievre.

Citing 45(1) of the Conflict of Interest Act means Dawson is examining the matter because of her own information gathered about the incident, not simply because a parliamentarian requested her to.

“If the Commissioner has reason to believe that a public office holder or former public office holder has contravened this Act, the Commissioner may examine the matter on his or her own initiative,” the clause says.

Poilievre said an investigation was basically inevitable once the facts were out.

“It’s actually really simple: The finance minister owned millions of dollars in shares in a pension administration company, while he introduced a bill on pensions,” he said. “Pretty cut and dry.”

Cullen said the Liberals have a lot to answer for — including why they haven’t yet committed to closing the ethics loophole that allowed Morneau to hold the shares in the first place.

“It’s stunning, having a sitting finance minister under an ethics investigation,” he said.

The long-running saga over Morneau’s personal Pension Benefits Standards Act by allowing federally regulated employers to set up target benefit plans. Morneau Shepell had publicly advocated for this change, though recently said in a statement it would not have “a material impact on our company.”

The legislation has not advanced to second reading debate since it was introduced.

On Oct. 19, Morneau held a news conference to say he would place all of his assets into a blind trust and divest his Morneau Shepell shares. He later met with Dawson to discuss whether more measures were necessary.

However, Morneau also shared a letter from Dawson’s office dated Feb. 2, 2016, where she had advised him a blind trust was not necessary. Dawson had determined the shares were not “directly held” by Morneau, because they were held by a numbered company (even though he was ultimately the sole owner of the company).

Instead, Dawson had advised Morneau’s office to set up a conflict-of-interest screen that required Morneau to be recused from decisions or discussions that specifically affected Morneau Shepell. These screens have been derided as ineffective by critics, however, because they don’t apply to decisions that have “general application.”

Morneau has been asked repeatedly whether he recused himself from discussions around Bill C-27, and has never directly answered the question. House of Commons records show he introduced C-27 for first reading on Oct. 19, 2016.

It’s not known how long Dawson’s investigation will take, but it may be lengthy. For most of the year, she has been examining the vacation taken by Prime Minister Justin Trudeau to the Aga Khan’s private island in December 2016, and it’s still not completed.

Further complicating matters, Dawson is serving as commissioner on an interim basis until January. Her term expired in 2016, but the Liberal government has been unable to find a permanent replacement, and still hasn’t named one.

In a statement, Morneau’s office said the minister has always followed Dawson’s recommendations and advice. “In this spirit, the Minister will answer any questions the Commissioner has on this matter,” it said. involved. “I was just like, what the heck?”

He visited his youngest girl in hospital, who had been taken there with some of the other suspects for treatment.

They don’t remember what happened, the man said. “Whatever potency that stuff had obviously is making it so it’s just a big blur,” he said.