Elections Canada is continuing an investigation into an alleged Conservative plot to conceal advertising expenses. NDP MP Pat Martin wrote to the commissioner of elections Friday asking the federal agency to expand its probe to include Tory candidates who transferred money to the federal party for polling.
Martin said the way the funds are flowing is eerily reminiscent of the scheme Elections Canada flagged last year involving advertising expenses.
"This is identical in structure to the advertising," said Martin. "This could be a whole second tier of scamming."
A Free Press review of Conservative expense claims turned up 50 Tory candidates who sent a total of $854,000 to the national Conservative campaign under the category of "Election surveys or other surveys and research."
In all but two of the campaigns, the amounts transferred were either $15,000 or $20,000.
Sixteen campaigns saw "in-and-out" transactions, where money was paid to the central campaign, and then returned to the local campaign or where the central campaign paid money to the local campaigns and then it was returned to central.
In the other 34 campaigns, the transaction only involved a local campaign paying the national campaign. In many, the transactions occurred weeks, even months, after the election was over.
Two Manitoba MPs were among those who paid the national campaign for polling: Steven Fletcher (Charleswood St. James Assiniboia) and James Bezan (Selkirk-Interlake).
Winnipeg Liberal MP Anita Neville said this appears to be another example of the Tories skirting the rules at every turn.
"Any time there is a gray area at all, they move in," said Neville. "If it's not explicitly spelled out that you cannot do it, they do it."
Martin said he is concerned that some of the transactions took place well after the election was decided. Although candidates have four months to close the books on their campaign expenses, it is unusual to see large transactions like this done after the election, he added.
Intensive polling is not routinely done at the local campaign level in federal elections because of the cost and because less expensive alternatives, such as voter identification phone banks, are available. And because, on average, campaigns are capped at about $80,000, a $20,000 expense represents an inordinate share of overall spending.
Martin said that $15,000-$20,000 for a poll in a single riding is an enormous amount of money for polling.
"The maximum for a poll in my riding is $6,000," he said.
Neville said there is no question $15,000 or $20,000 for polling in a single riding is outrageous.
"We've had quotes which on the low end were about $4,000 and on the high end were $12,000," said Neville.
The federal election watchdog would not confirm receipt of a complaint regarding the polling expenses, but a spokesman for the agency said that is because it cannot confirm nor deny an investigation until it progresses to the next level.
John Enright said the commissioner of elections must follow up every complaint he receives. But the public is only informed if the investigation proceeds to further action, such as a court case or an agreement with the party involved in the complaint.
Individual candidates who get more than 10 per cent of the vote in their ridings are eligible for a rebate from Elections Canada of 60 per cent of their approved election expenses. They have to file their returns within four months of election day but can file an amended return at any time.
Political parties which achieve two per cent of the popular vote nationally are eligible for a rebate of 50 per cent of their election expenses.
There were 884 candidates who ran in 2006 who achieved the 10 per cent threshold. Elections Canada has now processed all but 26 of those returns.
Fletcher, who was defending his riding against Liberal star candidate John Loewen, said his claim for $20,000 in polling was completely legitimate within election financing rules. "Let me say that transfers between national and local campaigns happen in all parties and is within the rules and guidelines of the Elections Act," Fletcher said. "All of my expenditures are listed online and have been approved by Elections Canada."
Fletcher's official election expense filing shows his campaign sent $20,000 to the national Conservative campaign for polling on December 13, 2005. As an eligible expense, it created a $12,000 rebate for Fletcher's campaign.
However, that same sum of money was transferred back from the national campaign to Fletcher's campaign account just 12 days later, on December 23.
In an earlier email exchange, Fletcher said the initial payment to the central campaign was for "services rendered" during the campaign. Fletcher said the subsequent payment from the central campaign to his local account was not a repayment of the original $20,000, but actually a transfer of money from his riding association.
Many riding associations maintain accounts holding money raised between elections and surpluses from previous campaigns. When a new writ is dropped, the riding associations transfer money to the candidate's campaign account.
In Fletcher's case, the Charleswood St. James Assiniboia riding association did make a $28,320.84 transfer to the central campaign account on December 6, 2005. On December 8, the exact same amount was transferred back to Fletcher's campaign account.
However, the riding association did not make an additional $20,000 transfer, as Fletcher suggested.
The polling expense issue could add more fuel to a fiery relationship between Elections Canada and the Conservative Party.
Elections Canada last rejected advertising expense claims by 67 Conservative candidates it felt were being used in a scheme to hide national advertising costs. The election watchdog has alleged the candidates agreed to receive cash transfers from the national campaign, only to send it back within a matter of days or weeks.
Elections Canada alleged the so-called "in-and-out" scheme allowed the national Tory campaign, which had already reached its $18-million spending limit on advertising, to charge $1.1 million of its advertising costs to the local campaigns. Elections Canada also alleged this allowed candidates to claim for expenses not actually incurred to obtain more than $700,000 in rebates they were not entitled to receive.
Elections Canada alleged the scheme allowed the party to hide $1.1 million in advertising costs, while providing $700,000 in undeserved rebates.
The Conservatives took Elections Canada to court to contest interpretation of spending rules. However, last month, Elections Canada obtained a search warrant and raised federal Tory headquarters in Ottawa. In the information to obtain the warrant, Chief Electoral Officer William Corbett alleged the Tories had filed misleading expense reports to the agency.
dan.lett@freepress.mb.ca
mia.rabson@freepress.mb.ca
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