Mr. Speaker, I hasten to support the hon. member for Beauséjour because, indeed, the electoral financing transfer scheme used by the Conservative Party of Canada constitutes electoral fraud and represents an assault on the democratic principles upon which Parliament and our electoral system are based. At the end of February, the Commissioner of Canada Elections filed four electoral fraud charges against the Conservative Party and four of the senior directors of its electoral fund, Conservative Fund Canada, including two senators. All were charged with knowingly violating the Canada Elections Act during the 2006 election.
The first charge is against Conservative Fund Canada, Senator Finley, Senator Gerstein, Michael Donison and Susan J. Kehoe and reads:
Between November 1st, 2005 and January 23rd, 2006, in the City of Ottawa, in the Province of Ontario and elsewhere in Canada, did wilfully incur election expenses in relation to the 39th federal general election that exceeded the maximum of $18, 278, 278.64 for the Conservative Party of Canada, contrary to Section 423 (1) of the Canada Elections Act and did thereby commit an offence punishable on summary conviction contrary to Sections 497 (3) (g) and 500 (5) (a) of the said Act.
The second charge is against the Conservative Party of Canada and reads:
Between November 1st, 2005 and January 23rd, 2006, in the City of Ottawa, in the Province of Ontario and elsewhere in Canada, being a registered party whose chief agent, the Conservative Fund Canada, did wilfully incur election expenses in relation to the 39th federal general election that exceeded the maximum of $18,278,278.64 for the Conservative Party of Canada, contrary to Sections 423(1) and 497(3)(g) of the Canada Elections Act is guilty of an offence punishable on summary conviction contrary to Section 507 of the said Act.
The third charge is against Conservative Fund Canada and Irving Gerstein and reads:
Between January 23rd, 2006 and December 18th, 2006, in the City of Ottawa, in the Province of Ontario, did provide the Chief Electoral Officer with a return on the general election expenses of the Conservative Party of Canada, in relation to the 39th federal general election, that they knew or ought reasonably to have known contained a materially false or misleading statement, namely that all election expenses in respect of the 39th federal general election had been properly recorded, contrary to Section 431(a) of the Canada Elections Act and did thereby commit an offence punishable on summary conviction contrary to Sections 497(3)(m)(ii) and 500(5)(a) of the said Act.
I want to point out that the party being named in these charges is the same party that claimed, in 2006, that it wanted to amend the Canada Elections Act in order to improve the integrity of the electoral process and instill complete confidence in the Canadian public. That is not what I call leading by example.
The fourth charge is against the Conservative Party of Canada:
Between January 23rd, 2006 and December 18th, 2006, in the City of Ottawa, in the Province of Ontario, being a registered party whose chief agent, the Conservative Fund Canada, did provide the Chief Electoral Officer with a return on its general election expenses, in relation to the 39th federal general election, that the Conservative Fund Canada knew or ought reasonably to have known contained a materially false or misleading statement, namely that all election expenses in respect of the 39th federal general election had been properly recorded, contrary to sections 431(a) and 497(3)(m)(ii) of the Canada Elections Act is guilty of an offence punishable on summary conviction contrary to section 507 of the said Act.
How can the Prime Minister claim that this is a difference of opinion? These charges clearly indicate that it is a question of bogus invoices, misleading statements made to Elections Canada and deliberate overspending. These offences could result in a $5,000 fine, five years in prison, or both.
This in and out scheme shows the Conservatives for what they truly are. They can talk all they like about an administrative dispute between their party and Elections Canada, but the Federal Court of Appeal unanimously sided with Elections Canada, which alleges that the Conservative Party deliberately spent more than the national campaign limit by having 67 candidates pay some of the party's advertising costs, to the tune of $1.3 million.
This is how the Conservative scheme worked. After the Conservative Party reached its $18.3 million spending limit, it decided to transfer $1.3 million to 67 ridings that had not reached their $80,000 limit. The ridings returned the same amount, claiming that the money had been used for local ads. The ads, however, were exactly the same as the national ones. The riding associations had no control over these transfers.
The Parliamentary Secretary to the Prime Minister can try to dismiss the facts and maintain that the matter is an administrative dispute, but it will be hard to fight the charges when so many candidates are now coming forward to tell their stories.
Inky Mark, who resigned his Manitoba seat last year, said that his staff was contacted by party officials during the 2006 election campaign. He said that Conservative Party officials asked if they could deposit several thousand dollars into his campaign account and withdraw it later to buy advertising. It did not make sense to him, so he refused.
Mark's former campaign manager said she recalls being asked to receive money and then have the funds withdrawn quickly afterward. She remembers the issue because it sounded similar to a case involving a Conservative cabinet minister from Manitoba who had to plead guilty and was convicted of electoral overspending.
Also, the independent Conservative MP for Simcoe—Grey, who was turfed from the Conservative caucus last year, said her campaign was approached and she rejected the plan.
There is also David Marler, a candidate in the Brome—Missisquoi riding in the Eastern Townships. In an interview with La Presse, he explained why he refused to sign a form in December 2006: the document would have authorized Conservative Party officials to transfer money to his account and then take it right back out again. David Marler declined the offer when an organizer was unable to explain to him the reason and purpose of this transaction. As a lawyer, he understood right away that this scheme was illegal.
The Conservative Party's behaviour during the 2005-06 election campaign, when it claimed to be the champion of public ethics, does not fall into the category of an administrative dispute but, rather, that of hypocrisy and abuse of power. The Conservative Party used a shell game to give the impression that it had complied with the national spending limit. The national organization distributed some $1.3 million to 67 candidates who were below their campaign spending limits.
The Conservatives can try to downplay what they did, but Canadians are well aware of their fraudulent tactics. The Canada Elections Act applies to all political parties. Creating a level playing field for everyone serves to promote a healthy democracy. There is no point in imposing a spending limit on political parties if they can circumvent that limit by moving money around to their local organizations.
The Prime Minister must order the immediate repayment of any and all illegally obtained electoral rebates that were paid out to candidates for the Conservative Party of Canada as a result of the in and out fraud and must remove all individuals facing charges for this fraud from any position of responsibility within government or the Conservative Party of Canada. The issue here is the integrity of the electoral process and thus of Canadian democracy.