Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Friday, August 09, 2013

Senate expense scandal: Ottawa man tied to $9M in federal contracts behind loan to Mac Harb

OTTAWA—An Ottawa lawyer whose hotel has received millions of dollars worth of federal government contracts was behind a $55,000 loan to troubled Sen. Mac Harb .

Corporate records show Brian Karam, an Ottawa businessman and lawyer in private practice, is listed as the sole owner of the numbered company — 1202864 Ontario Ltd. — that property records show provided Harb with a $55,000 loan against his Ottawa condominium on May 17.

The former Liberal senator whose expense claims are being investigated by the RCMP mentioned the loan in an update to his disclosure statement to the Senate ethics officer on June 12, where he was not required to specify the amount.

Karam is also listed as the president and director of another numbered company — 595799 Ontario Ltd. — that now operates as The Business Inn, a suite hotel in downtown Ottawa that serves clients who stay in the city for extended periods of time.

The Business Inn has received annual government contracts worth a total of more than $9.37 million since 2009.

Its current contract for $1.87 million runs out at the end of this year.

Those contracts could present a problem for Harb.

The section of the Criminal Code related to “frauds on government” states a government official — defined as anyone “appointed or elected to discharge a public duty,” such as a senator — cannot accept an “advantage or benefit of any kind” from “a person who has dealings with the government” without written permission from the head of their branch of government.

This is the same section of the Criminal Code the RCMP is looking at in its investigation of Sen. Mike Duffy for the $90,172 cheque he received from Nigel Wright, who was then chief of staff to Prime Minister Stephen Harper.

It remains unknown whether Harb received such written permission and there are no details available concerning the terms of the loan.

Harb did not respond to requests for comment left with his office or sent to his personal email account Wednesday.

Karam could not be reached Monday, as an outgoing voicemail message said his office would be closed until Sept. 2, but The Canadian Press reported he had not responded to a message left with his receptionist or questions faxed to his office last week.

Deborah Palumbo, with the office of the Senate ethics officer, said in an email Monday she could not comment on the “circumstances of individual senators” due to reasons of confidentiality.

Senate communications did not respond to questions about the loan.

The Senate internal economy committee released a report May 9 recommending Harb reimburse taxpayers for living expenses associated with his secondary residence in Ottawa following a review of his travel patterns and expense claims by forensic accounting firm Deloitte.

The amount owed was originally determined to be $51,482, but following an internal investigation into his expenses that went further back in time than Deloitte, the Senate internal economy committee raised the amount to $231,649.

Harb, who resigned from the Liberal caucus May 9 and has filed for a judicial review by the Ontario Superior Court, repaid $51,000 “under protest” on July 5, with his lawyer saying he expected the money returned if he is victorious in court.

Court documents related to the RCMP investigation into alleged breach of trust by Harb revealed the Mounties believe a property in Cobden, Ont., he had previously declared as his primary residence — allowing him to claim up to $22,000 annually for his time spent in Ottawa on Senate business — was “uninhabitable” for at least three years.

The RCMP also alleged in the court documents Harb had sold 99.9 per cent of that property to Magdalene Teo, a former Brunei ambassador to Canada, for $567,000 in 2007, the same day Harb had obtained a mortgage on the home for $177,000.

The Mounties are also investigating Duffy and Sen. Patrick Brazeau for allegations relating to their expense claims.

Meanwhile, the Senate internal economy committee expects to release a review by Deloitte into the travel expenses of Sen. Pamela Wallin, as well as its own report on the matter, next Tuesday.

Original Article
Source: thestar.com
Author: Joanna Smith

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