Auditor general raps NDP for partisan fund

NDP amassed $ 260,000 for cultural outreach

With political tensions still running high over the B. C. Liberals’ ethnic voter scandal, the provincial New Democrats insist they’ve broken no rules by using constituency funds to conduct cultural outreach in predominantly Asian ridings.

Leaked portions of a draft report from auditor general John Doyle said that by March 2009, the NDP had amassed $ 260,000 from monthly constituency office payments and most of the money was used to fund partisan activities.

Those activities included hiring cultural outreach coordinators, joint advertising for events such as Lunar New Year, Diwali and Vaisakhi, and translation services, said NDP caucus chairman Shane Simpson.

He added there is “no comparison” between the fund, which drew $ 200 a month from each constituency’s coffers, and the B. C. Liberal plan to use taxpayer dollars to court ethnic voters, which ignited controversy last month.

The NDP constituency fund was administered and approved by the province’s comptroller general, Simpson added.

He said the caucus agreed to create the fund, composed of $ 2,400 collected annually from each of the NDP’s 36 ridings, after the 2005 election to pool resources for outreach that could be accessed by individual MLAs.

“It went in to allow us to buy some joint services that every member could avail themselves of and all of those resources were supplied to caucus members,” he said. “That was the purpose of it.”

Some of the money was used to buy political advice from people, including former NDP candidate Gabriel Yiu, whom the Liberals were suggesting last week was a hired NDP gun in multicultural communities.

Simpson said last week Yiu took unpaid leaves of absence to run as an NDP candidate and never offered advice to the party, and said the same applies to the centralized fund.

“Not one dime went to the party,” he said. “No advice was given to the party in any way, shape or form. It was all applied to the caucus and caucus members.”

But excerpts from Doyle’s report question whether the fund was an appropriate use of constituency money.

“Our review of supporting documentation underlying expenditure amounts charged to this account indicates that funds accruing to this account were being used for partisan purposes and not for goods or services consistent with the original purpose of the constituency office,” said the draft audit for the year ended March 31, 2010.

Audit documents also said the NDP used some of these funds to balance their caucus expenses.

“Similarly, at the end of fiscal 2009, NDP caucus contractor expenses of approximately $ 45,000 were reclassified to this same payable account,” said the audit documents. “This reclassification meant that NDP caucus expenses were effectively paid out of NDP MLA constituency office funds. We note as well, that without this entry NDP caucus expenses would have been over budget in 2009.”

Simpson said the constituents contributed to the fund up until a few months ago, when Doyle raised concerns over whether it should have been administered through the province’s financial services department, as opposed to externally through the NDP caucus.

The remaining money has since been returned to individual constituencies. Each has received about $ 16,000 he said.

Simpson downplayed Doyle’s concerns over whether the money was used to fund partisan activity.

“Things we did, were they political? Well, to the extent that caucuses are political.”

Community, Sport and Cultural Development Minister Bill Bennett, who raised questions about Yiu’s connections to the NDP last week during heated exchanges over Liberal aims to woo ethnic voters, called the NDP fund an unethical use of constituency dollars.

“For a party to claw back some of that money that is supposed to be used to service our constituency ... is an abuse of our obligations,” he said.

Former comptroller general Dan Arbic was laid off last fall after an audit by Doyle concluded the legislature’s finances were in such a state of disorganization, he couldn’t determine if bills were being paid.

Doyle could not be immediately reached for comment.