Court Clerk: "Do you swear to tell the whole truth and nothing but the truth so help you God?" ..... Politician: "Of course not what kind of dumb ass question is that?"

'Complex' defence of former Senator Mac Harb may see several prominent politicians take the stand

Jordan Press
Tuesday, March 18, 2014

Senator Mac Harb is shown on Parliament Hill Thursday, May 9, 2013 in Ottawa. The former Liberal Senator has had his court case put over to April 22. Harb is charged with fraud and breach of trust in connection with the Senate expenses scandal. (The Canadian Press/Sean Kilpatrick)

OTTAWA — The findings of the Senate’s own auditors that its expense rules are unclear could be “crucial” for the defence of former senator Mac Harb, his lawyer said Tuesday.

Harb is charged with one count each of fraud over $5,000 and breach of trust, for housing expense claims he filed to the Senate over 10 years.

The one-time Liberal senator has long maintained he did nothing wrong in claiming a secondary housing allowance while in the Senate. Before repaying the Senate about $231,000 in expenses dating back a decade, he pointed to findings in his expenses audit in which independent auditors from Deloitte called the Senate’s expense rules vague and unclear.

In the fall, the Senate heard the same view from KPMG, the firm that audits the Senate’s annual financial statements. A letter to the Senate from KPMG has yet to be released, but a copy of it was reviewed by the Ottawa Citizen. Not only could Harb make use of the information, but so could Senator Patrick Brazeau, who also faces fraud charges
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“It’s crucial information. It’s central to the issue,” lawyer Sean May said in an interview Tuesday.

Rulings on rules

What do Senate rules say about housing?

A senator whose home is more than 100 kilometres from Parliament Hill can claim an allowance of up to $22,000 a year for accommodations in the national capital region, but only if that house, condominium or apartment is used strictly to “attend to his or her parliamentary functions in Ottawa.” The senator must also maintain a “provincial residence,” the place designated as their “principal home” in the province they represent. (Previously, the national capital accommodation was called a “secondary residence,” and the provincial residence was known as a “primary residence.”)

What the auditing firm Deloitte said about the housing rules

That there was a “lack of clarity” in the terms used for primary and secondary residence.

What auditors KPMG said about the Senate’s housing rules

That they were not “sufficiently detailed,” meaning some ineligible expense claims could inadvertently be approved.

“[Harb] maintains he’s not done anything wrong and we’re seeing more and more information coming out … that people who are in a position to assess things are saying the rules are unclear.”

May said Harb’s legal team hasn’t made any decisions about who might be called to testify, leaving all options open. That could mean that senior leadership in the Senate, such as former government Senate leader Marjory LeBreton, may be called.

“We’ll be mounting a very strong defence,” May said.

The fraud case against Harb, a longtime Ottawa-area politician, began with a first court hearing Tuesday.

Harb himself didn’t appear in court. His case was put over until April 22.

The RCMP alleged in court documents that Harb had claimed to live in a home more than 100 kilometres from Parliament Hill. He did so in order to qualify for a annual living allowance, now valued at $22,000 a year, for a secondary residence in Ottawa, the police say. In court documents, the RCMP alleged the out-of-town house Harb claimed as his primary residence was considered uninhabitable for three years, and that he sold 99.99% ownership to a Brunei diplomat who has since left Canada.

When the RCMP announced charges against Harb in early February, the Mounties said there wasn’t enough evidence to support a charge of mortgage fraud over the sale of the home.

May said he received a “significant amount” of evidence through the disclosure process. May said there are thousands of pages of material to go through.

“We expected it to be quite complex,” May said. “We need to sort of see what we’re dealing with.”