Kelowna-Lake Country MP Ron Cannan approved what Elections Canada now calls an improper use of campaign funds, even though some of his advisers decided it was the wrong thing to do. Cannan, as well as Okanagan-Shuswap MP Colin Mayes
and Okanagan-Coquihalla MP Stockwell Day, are among 17 sitting MPs listed by Elections Canada as being involved in the scheme. The party transferred tens of thousands of dollars to the candidates‘ campaigns, which simply turned
the money around by using bank transfers to pay the party for the ads. The candidates later claimed election expense rebates for 60 per cent of the ad expenses, but Elections Canada rejected the claims. Elections Canada says this “in-and-out transaction” allowed the party to exceed spending limits on advertising.Kelowna lawyer Leighton Meyer, who was Cannan‘s campaign manager for the 2006 election, said Friday the campaign team – including himself and Cannan – agreed to go along with a request from the national headquarters to transfer $15,000. However, Meyer said Cannan‘s “strategy team” – a group of experienced advisers in the constituency – said the arrangement might not be proper. “There was a group (in the Kelowna-Lake Country Conservative Association) who wanted to participate and a group that didn‘t,” said Meyer. “The strategy committee recommended not participating.” Although there was such a warning, Meyer said the proponents of the plan were “shocked” by the position taken by Elections Canada. “It was always allowed before, so it came as a shock to us when it was not allowed this time,” he said. Cannan, reached in Toronto Friday night, said he checked with the party‘s national office and was assured that the procedure was “above board and legal.” “I was reassured that this was standard practice in the past and all parties had done it,” said Cannan. However, he was unclear as to whether he had been informed by his local advisers that it may not have been proper procedure. “I don‘t remember . . . I probably was . . . they may have said something,” said Cannan, “but the national office told me it was legitimate. I had a campaign that was above board and transparent.”
The matter has proceeded to federal court. All the opposition parties are claiming that the Conservatives are guilty of a “systemic attempt to defraud Elections Canada, as well as the Canadian taxpayer.” Elections Canada has ruled advertising by candidates must oppose or support individual candidates to be eligible as a candidate expense. Meyer acknowledged that the TV ads in question in this area were regional ads, although Cannan‘s name was mentioned. The
Tories contend the advertising expenses were legal because the ads carried such small-print taglines listing candidates.Colin Mayes said his primary role as a politician is not dealing with spending. “As a candidate and as an MP, that‘s why I have a financial agent,” he said. “I don‘t know where money‘s coming from, and they take care of all the dollars.” Day refused comment Friday to the Okanagan Saturday, citing cabinet discipline and the fact the issue was before the courts as a reason. Phone calls placed Thursday with Day‘s office were responded to by ministerial assistant John Brent on Friday with a prepared statement. “It is the party‘s position it was a legitimate rebate request through Elections Canada,” said Brent. “There was a clear legal opinion at the time that it was applicable to the Elections Canada Act, and there‘s a difference of opinion with the new Elections Canada commissioner. That‘s why the Conservatives have brought it to the courts.” Okanagan-Coquihalla Conservative Party constituency association riding executive member Neil Jamieson declined to comment on the matter, deferring questions to the party‘s legal counsel in Ottawa
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