Following a lengthy investigation, Finance Minister Bill Morneau has been cleared by the federal Ethics Commissioner of charges that he abused his office and power to benefit himself and his former company Morneau Shepell.
Ethics Commissioner Mary Dawson dismissed late Monday complaints that Minister Morneau may have acted on insider information about tax changes to sell off one million shares of Morneau Shepell in advance of pending tax hikes that would impact wealthy Canadians.
Ms. Dawson said in a statement that it was clear to everyone after public statements by the government when it took power in November 2015 that it would make the tax changes, and so Minister Morneau was not using “insider information” that was “not available to the public” when he sold a first tranche of shares in the publicly traded human resources company that were then worth $15 million. Minister Morneau donated the profits on his share sale to several charities.
Ms. Dawson also concluded that the Finance Minister was not involved in the renewal of a government contract with his former company to manage the Bank of Canada’s pension plan. Clearing Minister Morneau of these charges comes as welcome relief to the Liberal Government of Prime Minister Justin Trudeau, which has been dogged in recent months by the ethics charges against the Finance Minister and opposition calls for his removal from office.
However, Ms. Dawson, in her final act as the Ethics Commissioner, left Minister Morneau’s fate hanging in a third and more political complaint. It relates to whether Minister Morneau was in a conflict of interest when he tabled Bill C-27, on pension reform, in the autumn of 2016, because the bill — which has languished on the order paper and not been studied — potentially could create more business for pension management companies such as Morneau Shepell.
Ms. Dawson’s failure to complete her investigation in that matter before her term ended at close of business on Monday leaves it to her incoming successor, Mario Dion, to decide whether to pursue the Finance Minister on that final charge. Mr. Dion told a Commons Committee in December that he would consider it. The office he takes up formally on Tuesday would only say that the investigation it is still “active.”
This situation seemed to energize opposition Conservative and NDP politicians in Ottawa Monday evening. NDP Ethics Critic Nathan Cullen said, “Our concerns remain about Mr. Morneau introducing legislation without clearing it with the Ethics Commissioner that would directly benefit him. The new Commissioner will now be left to pick up the investigations where Ms. Dawson left off.”
Mr. Cullen added that he remains concerned that the incoming Ethics Commissioner hasn’t pledged to do follow through on the remaining charge against Minister Morneau.
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