Canadian Senator Mike Duffy’s expense claims trial begins

Canadian Senator Mike Duffy’s expense claims trial begins


Canadian Senator Mike Duffy’s expense claims trial begins

Posted: 07 Apr 2015 05:56 PM PDT

Suspended Senator Mike Duffy arrives at the Ontario Court of Justice, in Ottawa, April 7, 2015. — Reuters picSuspended Senator Mike Duffy arrives at the Ontario Court of Justice, in Ottawa, April 7, 2015. — Reuters picOTTAWA, April 8 — Canadian Senator Mike Duffy billed taxpayers for family trips, funerals, a shopping trip for a puppy and other events unrelated to parliamentary business, while operating a "clearing house" fund to distribute government money, prosecutors allege.

The case against Duffy, a former broadcaster appointed to the Senate by Prime Minister Stephen Harper, was laid out yesterday as his trial began in Ottawa. Duffy stood quietly as 31 criminal charges were read out at an Ottawa courthouse before entering his plea.

"I am not guilty, your honour," Duffy, 68, said. His lawyer denied many of the Crown's allegations before the court.

The anticipated trial comes ahead of Canada's October federal election, and is expected to open a window into the office of Harper, whose former chief of staff, Nigel Wright, gave Duffy C$90,000 (RM262,288) to repay disputed expense claims. It marks the first time scandal has implicated Harper's inner circle, raising questions of what the prime minister knew and when he knew it.

Wright is now a managing director at private equity firm Onex Corp and lives in London. The prosecutor said outside the courtroom yesterday that Wright is expected to testify in person at the trial.

Harper has disavowed knowledge of the circumstances that led to criminal charges, though his political opponents have accused him of changing his story. In his own opening statement, Duffy's lawyer took aim at Harper.

Political stakes

Defence lawyer Donald Bayne told the court Harper was informed by Wright about the plan, that his office intervened in Senate reports on Duffy's case and that he personally evaluated Duffy's performance as a high-profile senator and fundraiser. Bayne also tied Harper personally to one of the disputed expense claims, saying a make-up artist paid by Duffy's office did Harper's make-up for the same event.

Any development that ties Harper to the case raises the political stakes in an election year. Speaking in Vancouver, Harper said yesterday he won't be called to testify because investigators have affirmed he had no knowledge of Wright's payment.

"We have offered the Crown every possible assistance in their case against Mr. Duffy," said Harper, who saw support for his Conservative Party decline to the lowest since he came to power as the scandal unfolded in 2013.

The scandal first emerged in late 2012 with reports that senators, including Duffy, were claiming expenses on secondary homes in Ottawa when they largely lived there. Duffy says his claims were all legitimate.

Wright's check

The controversy grew after it was disclosed that Wright wrote a personal check to Duffy to help him reimburse the Senate for some of the expenses. Duffy and two other Harper-appointed senators were subsequently suspended without pay by the chamber. Duffy was charged in July 2014.

The beginning of the trial yesterday offered the first chance for the prosecution, led by prosecutor Mark Holmes, to lay out details of the case.

While Duffy became a senator in 2009 as a representative of Prince Edward Island, he had long lived in the Ottawa area following a career as a television journalist covering political affairs. That is a key pillar to the case, as he had been filing travel-related expenses for trips to Ottawa even though he lived in the city, prosecutors allege.

"He portrayed himself as somebody who was a traveller to Ottawa" to claim expenses, Holmes said in court, even though he largely lived in the city. "Effectively, what he was doing was commuting" within Ottawa.

Duffy maintained his driver's licence, health benefits and paid his taxes at various times in Ontario, applying for Prince Edward Island credentials only when questions began being raised about his residency, Holmes said.

Expense claims

Holmes laid out some expense claims Duffy submitted to taxpayers. In one case, he contracted a former friend to run what Holmes said "was effectively a clearing house for Senator Duffy to hand over money as he saw fit." Under the arrangement, Duffy paid C$64,000 in Senate money to his friend, Gerald Donohue, between 2009 and 2012. Donohue then used those funds to make payments on Duffy's behalf, totalling at least C$32,000, to people including a volunteer at his Senate office, to a makeup artist and, over three years, about C$10,000 to a personal trainer, Holmes said.

Duffy's lawyer argued those contracting expenses were legitimate and all within the wide-ranging authority senators have over office budgets. "All were within the budget envelope. All represent a tiny fraction of the overall office budget. No kickbacks of money were ever sought by Senator Duffy," Bayne told the court.

Duffy's trips

Duffy billed taxpayers C$8,000 for a trip that included attending a theatrical performance his daughter was involved in, Holmes said. Other trips were for funerals, he said. One trip paid for by taxpayers was to go buy a puppy in Peterborough, Ontario, while another included visiting a daughter about to give birth, he said.

Duffy's lawyer said the senator never planned to buy a puppy and that other trips had legitimate Senate purposes.

In one case, Duffy had expensed a trip to Ottawa for a medical appointment, only to see it rejected by the Senate, the prosecutor said. He subsequently resubmitted the expense as a community event, Holmes said. In another incident, he billed the Senate C$3,142 for a trip to Ottawa, where he was paid C$11,000 to give a speech to an industry group.

Duffy defence

Bayne argued broadly that Duffy followed Senate rules while carrying out his duties, including those specifically at the request of Harper.

"The Crown hopes to have you, like an ostrich, put your head in the sand and ignore relevant evidence," Bayne told the judge, later saying Senate rules allow family visit on trips that also have a Senate purpose. "Why wouldn't Senator Duffy, if he's out on Senate business, meet with his daughter out in Vancouver?" Bayne asked the judge.

Duffy needs to be held to Senate rules, however unclear they are, and not the prosecution's "colloquial idea of the layman's common sense," said Bayne, who later held up a book of Senate rules as a demonstration to the court.

"It's not a book of common sense, but it is the book that governs the Senate," he said.

The 31 charges include multiple counts of fraud and breach of trust, relating to the Wright payment, to contracts he awarded and to other travel expenses filed to the Senate.

The trial is being held before Justice Charles H. Vaillancourt, without a jury. It is expected to last until June. — Bloomberg

Japan stocks rise as investors await BOJ policy plan

Posted: 07 Apr 2015 05:52 PM PDT

A man hides from the rain in front of an electronic stock quotation board outside a brokerage in Tokyo April 7, 2015. — Reuters picA man hides from the rain in front of an electronic stock quotation board outside a brokerage in Tokyo April 7, 2015. — Reuters picTOKYO, April 8 — Japanese stocks rose for a second day as a weaker yen buoyed exporters and investors await a Bank of Japan monetary policy decision.

TDK Corp, a component maker that gets more than 90 per cent of sales overseas, advanced 1.3 per cent. Sony Corp strengthened 2.5 per cent after saying it will boost production of camera sensors. Dentsu Inc. jumped 5.5 per cent after the advertising agency's sales rose in March from a year earlier. Fuji Heavy Industries Ltd slumped 1.6 per cent after UBS AG cut its rating on the stock to sell.

The Topix index climbed 0.5 per cent to 1,586.99 as of 9:26 am in Tokyo, with all but two of its 33 industry groups rising. The Nikkei 225 Stock Average added 0.5 per cent to 19,742.22. The yen traded at 120.22 per dollar after weakening the past two days.

"We should see a continuation of existing policies" at the BOJ meeting, said Hiroichi Nishi, an equities manager at SMBC Nikko Securities Inc. in Tokyo. "Inflation is subdued due to oil, but as crude prices begin to recover and settle down, we should see inflation return even without additional easing."

All 34 economists in a Bloomberg poll predict the BOJ will maintain record stimulus today. Investors also are awaiting Federal Reserve minutes for clues on when US interest rates will increase.

The BOJ remains far from achieving its inflation target, with its preferred consumer price gauge flat in February from a year earlier. At the January meeting, Governor Haruhiko Kuroda extended by a year to March 2016 his self-imposed deadline of achieving 2 per cent inflation.

E-mini futures on the Standard & Poor's 500 Index were little changed after the underlying gauge fell 0.2 per cent yesterday. — Bloomberg

Hilary Duff enjoys reinventing self after divorce

Posted: 07 Apr 2015 05:46 PM PDT

Singer Hilary Duff. — Reuters picSinger Hilary Duff. — Reuters picBEVERLY HILLS, April 8 — Hilary Duff hopes her new TV series Younger is "inspiring people".

The 27-year-old stars in the comedy show about as the co-worker of a 40-year-old single mother who pretends to be in her 20s to get an entry-level job. Hilary is loving the response it has had from viewers and is pleased that it's highlighted to so many of them that getting older doesn't have to mean your life is over.

"That's what the show is doing," Hilary told ET Canada. "It's inspiring people to not hold back in any age, you know?"

The star certainly hasn't held back herself lately. As well as taking part in sexy cover shoots for the likes of Cosmopolitan magazine and working on new music, she recently dyed her blonde hair blue. It was quite a drastic change for Hilary, but she didn't mind being on the receiving end of comparisons to reality star Kylie Jenner after revealing the look.

"I did hear the Kylie Jenner comparisons right when I dyed my hair," she told E! News. "I was like 'oh no!' I didn't know she had green hair, but the colour was similar. I think it looked amazing and she's a trendsetter and I'm happy to be in that company."

Hilary dyed her tresses after a relaxing holiday with her three-year-old son Luca and some female friends. And while she admits she will no doubt return to her natural colour soon, she's enjoyed experimenting and channelling her TV show's ethos.

"I don't know how long I'm going to keep the hair," she added. "It's fun right now it kind of takes on different tones every time I wash it. But maybe two or three more weeks? It's not meant to be super permanent." — Cover Media

George Clooney and wife demand privacy (VIDEO)

Posted: 07 Apr 2015 05:40 PM PDT

MILAN, April 8 — Although they had one of the most public weddings in recent history, George Clooney and Amal Alamuddin have taken action to discourage fans from disturbing them during their downtime.

The mayor of the community in Italy where George owns some land has put out a public notice explaining that anyone who sets foot on the grounds without permission can face a large fine. — Cover Media

Director and actor George Clooney arrives with his wife barrister Amal Alamuddin to attend the Celebrity Fight Night event in Florence September 7, 2014. — Reuters picDirector and actor George Clooney arrives with his wife barrister Amal Alamuddin to attend the Celebrity Fight Night event in Florence September 7, 2014. — Reuters pic

Asian stocks rise for fifth day ahead of BOJ policy decision

Posted: 07 Apr 2015 05:39 PM PDT

A man holding an umbrella walks in front of an electronic board displaying rise of various countries’ stock price index outside a brokerage in Tokyo April 7, 2015. — Reuters picA man holding an umbrella walks in front of an electronic board displaying rise of various countries' stock price index outside a brokerage in Tokyo April 7, 2015. — Reuters picSINGAPORE, April 8 — Asian stocks rose for a fifth day as material and health-care companies advanced and investors await a Bank of Japan policy decision and the release of Federal Reserve meeting minutes.

The MSCI Asia Pacific Index added 0.1 per cent to 149.21 as of 9.03am in Tokyo. The BOJ ends a two-day meeting today, with all 34 economists surveyed by Bloomberg predicting the Japanese central bank will maintain record stimulus. Investors are waiting for Fed minutes for clues on when policy makers will increase US interest rates after payrolls data added to signs of a weak first-quarter growth in the world's biggest economy.

"The BOJ is nowhere near its inflation target, so there's probably room for further easing," Nader Naeimi, who helps manage about US$118 billion (RM429.8  billion) as Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd "That will be a good surprise for the market. The Fed's policy is data dependent and that's going to cause more volatility going forward."

The BOJ will probably expand stimulus by the end of October, according to 22 of 34 economists surveyed by Bloomberg. The BOJ is among a wave of central banks easing policy to stave off deflation and ignite growth. By contrast, the Fed has ended its bond-buying programme and is pondering its first rate increase since 2006.

The world economy's growth potential won't soon return to levels seen before 2008 financial crisis as business investment slumps, raising the urgency for officials to find ways to stimulate demand, the International Monetary Fund said in its World Economic Outlook released Tuesday.

Regional gauges

Japan's Topix index gained 0.5 per cent. South Korea's Kospi index was little changed. New Zealand's NZX 50 Index added 0.1 per cent, as did Australia's S&P/ASX 200 Index. Markets in Hong Kong resume trading after holidays.

The Shanghai Composite Index jumped 2.5 per cent on Tuesday to the highest close since March 2008 as large-company shares gained on speculation the government will take more measures to boost the world's second-biggest economy. Markets in China have yet to open.

E-mini futures on the Standard & Poor's 500 Index were little changed. The US equity benchmark slipped 0.2 per cent on Tuesday, erasing gains of as much as 0.4 per cent, amid declines in consumer and utility shares.

West Texas Intermediate crude climbed 3.5 per cent on Tuesday to the highest level this year amid speculation a drop in US oil drilling activity will curb production. The contract has fallen as much as 2.2 per cent today. — Bloomberg

Bill to amend the Sedition Act — a chilling piece of proposed legislation — Syahredzan Johan

Posted: 07 Apr 2015 05:38 PM PDT

Bill to amend the Sedition Act — a chilling piece of proposed legislation — Syahredzan Johan

APRIL 8 — The amendment bill to the Sedition Act has been tabled in Parliament yesterday.

The 'good' things first, if they can indeed be called 'good'. Criticisms of any Government or of the administration of justice are no longer seditious tendencies. But that is of little comfort to any of us, as the other listed seditious tendencies are wide enough to cover almost anything that is said or done.

Now, the worrying parts of the amendment bill. First of all, the bill will take away judicial discretion in sentencing. The Court no longer has the option to impose fines upon conviction of a Section 4 sedition offence. Instead, there is now an imprisonment sentence of 3 years. The maximum sentence will also be increased to up to 7 years.

There is absolutely no justification for this. For an Act as wide as the Sedition Act, with no element of intention that must be proven, as well as the disproportionately high conviction rate, judicial discretion in sentencing may at least cushion some of the more draconian aspects of the law. It may be difficult for the Court to acquit a person as the Act casts a wide net on what is deemed to be seditious, but at the very least the Court has options when it comes to sentencing. The bill will take away that option.

Also, Members of Parliament beware! A conviction for under the Sedition will result in an MP losing his or her seat.

Secondly, the proposed Section 5B empowers the Court to prevent a person who is charged with a sedition offence from leaving Malaysia. It provides that if an application is made by the Public Prosecutor, the Court shall order the person to surrender his travel documents such as his or her passport or order the Director General of Immigration not to issue any travel documents to the said person. The keyword here is 'shall', which suggests that the Court has no discretion on the granting of such an order once an application is made.

Under the Criminal Procedure Code, the Court has the power to order a person on bail to surrender his or her travel documents. But the discretion is left to the Court, and the Deputy Public Prosecutor has to justify why such condition must be imposed. With the bill, the Court now has no choice but to make the order.

Thirdly, the proposed Section 4(1A) provides for a new offence — an aggravated offence where the seditious act 'causes bodily injury or damage to property'. The sentence upon conviction is a minimum of 5 years imprisonment and maximum 20 years imprisonment.

Why the need for a new offence? The Penal Code has offences to deal with those who make statements conducing to public mischief or to provoke a breach of the peace. Why not deal with such acts through the Penal Code?

What is more inexplicable is the provision to deny bail for an accused charged under this new proposed Section 4(1A). Again, the Court has no discretion. Once a certificate is given by the Public Prosecutor, no bail shall be granted for the person. There is absolutely no reason why bail should not be granted for a Section 4(1A) offence. The underlying principle of bail is to secure attendance of the accused, not to punish the accused.

If it is really not in the public interest for accused person to be released on bail, the Prosecution should submit the justifications to deny bail to the Court. It should then be left to the Courts to determine whether bail should be granted or not.

The proposed Section 6A expressly excludes conditional and unconditional discharge, binding over and options for the Court to deal with youthful offenders and first time offenders for those convicted for an offence under Section 4(1A). Again, why the need to take away the Court's discretion?

Fourthly, the bill inserts a new seditious tendency of promoting feelings of ill will, hostility and hatred between persons or groups of persons on the ground of religion. The words used mirror Sections 298 and 298A of the Penal Code; the offences of uttering words and others with deliberate intent to wound the religious feelings of any person and causing disharmony, disunity, enmity, hatred or ill will on grounds of religion. The crucial difference is that unlike the Penal Code offences, the element of intention need not be proven, as long as it can be shown that there is the requisite seditious tendency.

There are other worrying aspects of the amendment bill which shall not be delved into here. Suffice to say, if this amendment bill is passed, the State will have in its arsenal tools to severely restrict freedom of speech and expression. If the Sedition Act is bad in its current form, the amendments will make it much worse.

* This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail Online.