Conservatives Caught up in Scandal!!!!

The small but proud province of Newfoundland has been shaken by allegations involving millions in misused public dollars. The Auditor General, John Noseworthy's investigations dealt with two things: MHA constituency allowances and questionable payments made to companies by the legislature.

• Four politicians misused approximately $1 million from their constituency allowances (money given to members of the provincial legislature to pay for items such as office rentals, supplies and miscellaneous services).
• More than $2.6 million was paid to three companies for trinkets like lapel pins and fridge magnets over a seven-year period, while an additional $170,000 went to a company owned by the legislature's now-suspended director of financial operations, Bill Murray.

The first public signs of scandal occurred on June 21 when Premier Danny Williams unexpectedly announced that Ed Byrne, a senior member of the provincial Tories, had stepped aside as natural resources minister because of a review by the auditor general's office.

• Ed Byrne resigned his post as Newfoundland and Labrador's natural resources minister in June. [The announcement rocked political circles because Byrne, 43, had been one of Williams's most trusted colleagues. In 2001, Byrne stepped down as leader of the Progressive Conservatives to make way for Williams to lead the party. He has also served as government house leader in the legislature.]
• The auditor general reported that Byrne had signed and submitted claims for $358,142 during the 2003 and 2004 fiscal years – or more than $326,000 above his $31,500 limit. All the money allegedly came from Byrne's constituency allowance, and Noseworthy claimed to have a paper trail of receipts and cancelled cheques showing the money was deposited into Byrne's personal bank accounts.
• Noseworthy's office reported that payments totalling $2.8 million were made between 1999 and 2005 in untendered contracts to buy low-cost promotional materials items – including lapel pins, fridge magnets and key chains – as well as a number of more expensive items, including 79 gold rings for MHAs that cost $750 each, plus tax.
• Payments were allegedly made to four companies: Zodiac Agencies, JAS Enterprises, Cedar Scents International and Unique Keepsakes.
  Noseworthy's staff also identified a possible conflict of interest when they reported Unique Keepsakes was tied to Bill Murray, who was suspended in June as the house's director of financial operations. Between 2001 and 2005, Unique Keepsakes received $170,000 of public money, Noseworthy found.
• On July 4, Noseworthy said he has finished his investigation into spending at the house of assembly and will no longer talk publicly about the expense scandal. The Royal Newfoundland Constabulary is now investigating the matter.