$65K contract with friend could be focus as Mike Duffy trial resumes

Written By Unknown on Senin, 13 April 2015 | 22.40

After the first week of one of the most anticipated Canadian political trials in recent history, some of suspended Senator Mike Duffy's controversial expenses, including a $65,000 contract with his friend, could come to light during testimony this week in Ottawa.

Duffy has pleaded not guilty to all 31 charges of fraud, bribery and breach of trust related to expenses he claimed as a senator. 

With throngs of journalists covering the trial in provincial court, Sonia Makhlouf, a Senate human resources official, could provide information about Duffy's contract with Gerald Donohue.

Donohue was hired by Duffy as an independent contractor.

In court documents, the RCMP has alleged that Duffy paid Donohue $65,000 for "little or no apparent work." Donohue is also expected to be a witness at the provincial court trial.

Entries in Duffy's diary, which has been entered into the court as an exhibit, reveals a reference to Makhlouf regarding the contract. 

On Dec. 21, 2010, Duffy writes he "faxes Gerry's contracts to Sonia." In a later entry, dated Dec. 30, Duffy writes: "hassle with Senate Finance re: Gerry Donohue's contract."

Duffy's lawyer, Donald Bayne, will likely continue his game plan to suggest Senate expenses rules lack clarity.

Last week, Bayne conducted an extensive cross-examination of Crown witness Mark Audcent, a former Senate law clerk, for nearly three days.

Bayne zeroed in on rules governing residency, travel and office expenses filed by members of the upper chamber, and repeatedly asked Audcent if these regulations were "broad."

Audcent admitted the rules carved out around residency, for example, do not include a clear definition of what constitutes a primary residence.

Residency is one of the core issues in the trial. Duffy designated his home in P.E.I as his primary residence and he maintains this made him eligible to claim meals and living expenses for his time spent in the capital.

The Crown argues P.E.I. is not Duffy's primary residence.

Author and journalist Dan Leger, who penned Duffy: Stardom to Senate to Scandal, says Audcent's testimony did not damage Duffy.

Duffy Trial 20150409

Suspended Senator Mike Duffy's trial started last week in Ottawa and is expected to run into June. (Greg Banning)

"The fact that Duffy emerged from that without any deep slashing wounds is probably a good sign for his defence," Leger told CBC News Network.

"The other major element in all of this is the tremendous document dump that has been done with the Duffy diaries, the expense logs and just mountains of documents people are going through in search of the real story."

The Duffy diaries, which were entered into evidence last week, give a rare window into the personal and political life of the embattled senator, including entries about movies and dinner companions.

The entries also shed light on the volume of Conservative functions attended by Duffy.

"Here was a senator who was essentially hired, if you will, by the Conservative government, by Prime Minister Stephen Harper, to operate as a Conservative party fundraiser and sort of public relations man," Leger said. "This is what Mike Duffy did for a living."

Bayne emphasized Duffy's relationship with the government and the prime minister when he introduced a photo into evidence last week.

stephen harper with mike duffy

The photo signed by Prime Minister Stephen Harper and dated June 11, 2009, carries the message: 'To Duff. A great journalist and a great senator. Thanks for being one of my best, hardest working appointments ever.' (CBC)

The picture, dated June 11, 2009, included a message from Stephen Harper, "To Duff. A great journalist and a great senator. Thanks for being one of my best, hardest working appointments ever."

Duffy's trial, which will be conducted in two phases, is set to run until at least June 19.

A forensic audit, ordered by the Senate, is also underway and an interim report is expected to be released this spring.


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