Harb resigns amid expense scandal
Senator repays more than $231,000, but still subject to RCMP probe
Embattled Sen. Mac Harb has resigned from the Senate and paid more than $231,000 back to the upper chamber, but may still face questions from an ongoing RCMP investigation about his claims for living expenses.
Harb, a former Liberal MP who was appointed to the Senate in 2003 by former prime minister Jean Chrétien, announced his retirement — effective immediately — after paying about $180,000 on Monday for living and travel expenses over the past eight years, plus interest. He had already reimbursed about $51,000 in July.
The 59-year-old Harb also announced he was dropping a legal claim against the upper chamber, challenging their demands for reimbursement of his living expenses over the years.
Senators are entitled to collect about $22,000 in living expenses if their primary home is more than 100 kilometres from Parliament Hill, but a Senate committee alleged that Harb was inappropriately claiming those expenses — an allegation he denied.
“The Senate Committee treated me very unfairly, and I wanted to make the point that every Canadian, even Senators, should be entitled to due process,” said Harb in a statement. “I always followed Senate rules on expenses, and filed my expense claims in a timely and transparent manner. At no time did anyone suggest my claims were invalid or questionable. And from what I could tell, most Senators made similar claims.”
Harb, who could have served in the Senate until the mandatory retirement age of 75, noted in his statement that an earlier audit by the firm Deloitte had concluded that the upper chamber’s spending rules were unclear.
“I have been contemplating retirement for some time as I personally never considered the Senate to be a lifetime position,” Harb said.
“These past few months have been extremely difficult for me and my family and caused me to evaluate what more I could contribute in the circumstances. My dispute with the Senate Committee on Internal Economy made working effectively in the Senate unrealistic.”
Harb has repaid a total of $231,649.07. It includes a payment of $180,166.17 on Monday as well as a $51,482.90 payment received by the Senate on July 5, 2013. The total covers Harb’s living and related expenses between 2005 up to 2011, including interest of $38,758.59.
Harb wasn’t the only senator facing questions in recent years over expense claims.
Former senator Raymond Lavigne, also appointed by Chretien, is now serving a six-month jail sentence after he was criminally convicted of fraud and breach of trust over inappropriate expense claims, related to work in the Senate. Lavigne also contends he did nothing wrong.
Three other senators appointed by Prime Minister Stephen Harper — Patrick Brazeau, Mike Duffy and Pamela Wallin — have also had their expense claims audited in recent months, but deny any wrongdoing.
Harb would be entitled to immediately collect an annual pension of about $123,000, based on his time served as an MP from 1988 to 2003 and as a senator over the past decade, according to calculations by the Canadian Taxpayers Federation.
“There’s no question that the Senate and the parliamentary pension plan is a very good deal for the people who are in it,” said the federation’s federal director Gregory Thomas, adding that recent changes have reined in MP pensions by requiring the politicians to make larger contributions on an ongoing basis.
While Harb has dropped his legal case against the Senate’s demands for reimbursement, the retiring senator said that an ongoing review by the auditor general’s office would confirm many senators shared his own understanding of the rules and made similar expense claims.
Liberal Senate Leader James Cowan said he didn’t know which senators his former colleague in caucus was referring to, apart from those flagged in recent audits, but he said he respects Harb’s decision to resign.
Cowan added that he hasn’t spoken to Harb about the expense controversy since he resigned from the Liberal caucus.
“He’s never asked for my advice on what he should or should not do, and I have not offered,” said Cowan.
Harb’s lawyer, Paul Champ, explained that the former Liberal senator had taken out significant loans to cover the expenses and his legal costs, reporting all transactions to the Senate, as required.
Champ also confirmed that the RCMP were in touch with Harb but had not requested an interview.
“Technically, there is an ongoing investigation, but I don’t see it going anywhere fast,” Champ said on Monday.
The RCMP alleged in court documents released in July when it requested some of Harb’s records that the senator had once claimed a housing allowance based on a residence that was “uninhabitable” for three years.
One of Harb’s lawyers, Simon Ruel, noted at the time that the information hadn’t been verified or proven in court and that Harb would cooperate with authorities.
Harb hasn’t been charged with a crime.
Pierre Poilievre, the federal minister responsible for democratic reform, declined a request for an interview, but sent a statement through a spokeswoman that reiterated the Conservative government’s message from the past few weeks that it believes the Senate must either change or vanish.
NDP Leader Tom Mulcair, who was kicking off a new anti-Senate campaign, had a more celebratory reaction to the news of Harb’s retirement.
“One down, 99 more to go,” Mulcair said in Halifax.