DND ordered to repay federal treasury $147M

OTTAWA — The federal government has ordered National Defence to repay more than $147 million in unauthorized expenses incurred by members of the military over nearly a dozen years, the Canadian Press has learned.

The department acknowledged five years ago it had made a mistake when it allowed soldiers and civilian staff to claim some travel expenses and benefits that fell outside of federal guidelines.

The practice went on between April 1999 and January 2011. It was stopped after an independent analysis.

At the time, the military said the mistake involved “tens of millions of dollars” over five years and that it would try to get the federal Treasury Board to cover the expenses, which included the cost of sending family members of fallen Canadian soldiers to visit Kandahar during the war in Afghanistan.

Other expenses included reimbursing travel fees for troops deployed in different parts of Canada, bonuses for overseas postings and allowances for soldiers assigned away from families.

The deputy commander of the military, the now-retired vice admiral Bruce Donaldson, said in 2011 that he was hopeful Treasury Board — the department that manages federal spending — would retroactively approve many, if not all, of the payments in order avoid forcing members to pay back the money.

While no one in the military will have to dip into their pockets, it seems National Defence lost the retroactive approval argument and has taken on responsibility for the debt itself.

No one in the department, or the federal government, could explain on Tuesday why the amount wasn’t simply written off the federal books.

Jordan Owens, a spokeswoman for Defence Minister Harjit Sajjan, said she wasn’t able to comment on what went on before the federal Liberals took over. But she said the department felt the need to assume responsibility for the error.

“Our request to Treasury Board was that DND will pay back these debts, over the course of several years,” she said.

“Partisan politics aside, I don’t think anyone thinks [Canadian Armed Forces] members should be liable for money they believed they were receiving in good faith.”