Exhibits From The Mike Duffy Trial - August 13, 2015

JANUARY 2012
January 5, 2012, 3:21 pm

From: Michael Duffy
To: Nigel Wright
Subject: More your eyes only
#1
Nigel:
I met James Moore last week on a flight to BC. I did NOT / have not raise(d) the CBC with
him; altho he did give me his pitch on why we need a national broadcaster even with the 500
channel universe. My impression: he is using the defence of the cbc, to build support for a
future leadership bid, esp among francophone journalists from Quebec. Hard to belief eh??
LOL
2: Andrew Saxton Sr arranged a luncheon with a dozen BC business leaders. Their issues
were:
1: Pipelines. Great frustration with the energy companies. Ed Odishaw mentioned 1.5 B a
year in foregone tax revenues while we delay. In their view the gas companies are slow and
bureaucratic. How can feds help?
2: Big concern about pandering to natives re: Ridley Island and the precedent set at Ridley
paying natives a royalty on throughput through the Port.
3: BMO Sr VP says Farm Credit is using lower GOC interest rates to undercut commercial
banks in lending to farmers. An unfair advantage. (They suspect the GOC financing agencies
EDC, BDC, FCC are holding in reserves money that should be going to the government.
Why do they need reserves when they are backed by Canada?
4: Consensus was our grass roots would be outraged if we back off deficit elimination
targets.
5: Strong support for the idea of changing IRBs to allow them to be used for financing SMEs
in slow growth areas. Industry gets financing at no costs to the feds.
Duff
January 5, 2012, 4:33 pm
From: Nigel Wright
To: Michael Duffy
Subject: Re: More your eyes only
#2
Mike, thanks for this. I am alert to examples of what you address in #3. Lots of our people
oppose any changes, but we are making some incremental improvements. As you know, the
Government has signalled an intention to be active on issues realted to #1. Nigel
December 2012
December 3, 2012, 4:33 pm
From: Glen McGregor [gmcgregor@ottawacitizen.com]
To: Michael Duffy
Subject: Re: Housing allowance and speaking fee
#3
Its not BS, Mike. I just want to make sure my story is accurate. Your primary residence is
PEI yet you vote in Kanata, correct? I think a lot of people would be interested to know you
can claim extra costs of a secondary residence in a city youve been in since 1974.
Anything you think I should know about this, please let me know.
To: Michael Duffy
#4
The story runs in tomorrows paper, will be online tonight but I can make changes for print.
Im not suggesting you did anything wrong voting in Kanata, only that its an indication of
where you live.
From: Michael Duffy
To: Glen McGregor [gmcgregor@ottawacitizen.com]
#5
Glen:
This all relates to quick access to the Heart Institute. If you are a non-resident, there may be
some issues with having PEI pay for some of the heart treatment. I was advised by my PEI
cardiologist to do this, to ensure no potential future hassles with health care billing. Anyway,
it was all cleared by the Senate at the time.
I dont really expect it to change your story line. I know you too well to expect that.
Mike
Again I am telling you this on background, but I dont want to drag my heart issues into the
public forum.
December 4, 2012, 8:51 am

From: Michael Duffy
To: Michael Duffy
Subject: Smear Background FYI
#6
http://www.canada.com/business/Senator%2BMike%2BDuffy%2BClaims%2Bliving%2Ball
owances%2Bdespite%2Bbeing/7645424/story.html [Appendix A, Tab 1]
If this comes up, I want you to know the attached story is smear on me from that former
Frank employee, Glen MacGregor. (Remember my successful lawsuit against them?)
David Tkachuk, the Chairman of the Senate Internal Economy Committee says every out of
town Senator does this. The rules have been followed.
If you read the find print, you see that in the story, but most people wont do that.
It is a smear, plain and simple.
Is that defamation? Slander? It certainly implies Ive done something wrong.
The rules say an MP or Senator is entitled to stay in a hotel; or rent an apartment; or buy a
condo.
Dozens of MPs and Senators own houses or condos. All within the rules.
Why has he singled out me? Payback for the Frank lawsuit, is my bet.
December 4, 2012, 9:03 am
From: Nigel Wright
To: Michael Duffy
Subject: Re: Smear Background FYI
#7
Mike,
I am told that you have complied with all the applicable rules and that there would be several
Senators with similar arrangements. I think that the Standing Committee might review those
rules.
This sure seems to be a smear. I dont know whether it is actionable, my guess is that it is
not. This reporter is usually careful that way.
Nigel

From: Martin Perelmuter [martin@speakers.ca]
To: Michael Duffy
Subject: Ottawa Citizen
#8
Hi Mike:
A reporter from the Ottawa Citizen just called here regarding a story hes doing, and wanted
to find out about your speaking fee. He also asked about two other Senators (Jacques Demers
and Larry Smith). I havent called him back yet, and Im inclined not to. I thought Id give
you a heads-up, and see if you want me to get back to him, or have any guidance as to how
you feel I should deal with him.
Thanks!
Martin
From: Michael Duffy
To: Jacques Demers; Larry Smith
Subject: Fw: Ottawa Citizen
#9
Fyi. I told him to ignore these people. None of their business. Mike
From: Marjory LeBreton
To: Michael Duffy
Subject: Re: Ottawa Citizen
#10
Good advice it is none of their GD business.
January 2013
January 31, 2013, 3:59 pm
To: Michael Duffy
Subject: PEI health card
#11
Mike,
I understand you recently applied for a Prince Edward Island Health Card. As you
likely know, a health card is one of the pieces of documentation that the Senate
committee of internal economy is requiring to prove Senators primary and
secondary residences are where they claim to be from.
Im also told you asked the health ministers if your application could be expedited.
Do you have a PEI health card now?
Can you please call me at 613.235.6685 to discuss?
Thanks,
January 31, 2013 6:14 pm
From: Michael Duffy
To: Marjory LeBrenton
Subject: Re: PEI health card
#12
Fyi. I did not speak to the pei health min. Mike

January 31, 2013 7:16 pm
From: Marjory LeBrenton
To: Michael Duffy
Cc: David Tkachuk
#13
Thanks Mike. McGregor is going to write what he wants, no matter what one says to
him and there is nothing to be gained from trying. Marjory
February 2013
February 1, 2013 2:19 pm
To: Michael Duffy
#14
Hey Mike,
Still hoping to hear back from you on this health card issue. Also, Im told you pay
property tax on your PEI place at the non-resident rate. Is that correct?
Thanks,
From: Michael Duffy
To: Carolyn Stewart-Olsen
Subject: Mcgregors latest
#15
First the pei helath min leaks deets of my health card application. (I assume the libs
in the senate didnt do this? Ie I ref this in my confidential note to the auditor?
Now hes been fed info re my pei taxes real estate taxes.
-His latest follows; [See email #14]
From: Carolyn Stewart-Olsen
To: Michael Duffy
Subject: Re: Mcgregors latest
#16
I doubt the leak came from senate officials or Libs. They have worries too. As far as I
know only the auditor has the details of personal info provided. But this is very
troubling.
February 2, 2013 11:44 am

To: Michael Duffy
Subject: Re: Glen macgregor
#17
Hang in there Mike. I will get your back.

From: Michael Duffy
Subject: Fe: PEI health card
#18
[No message. Forwarded on e-mail chain with Glen McGregor. See Email #14]
To: Michael Duffy
#19
I am appalled by their health minister. This is a privacy issue and he should keep his
mouth shut.

From: Chris Woodcock
To: Nigel Wright; Joanne McNamara; Ray Novak; Andrew MacDougall
Subject: Duffy Statement
#20
Senator Duffy is going to issue the following statement. Senator LeBreton asked him
to put something out in response to the stories. Ive given the text my ok.
As a long-time Prince Edward Islander, I am proud to represent my province and its
interests in the Senate of Canada. I also represent taxpayers with care. I have a home
in Prince Edward Island and I have provided the Senate Committee on Internal
Economy, Budgets and Administration with documentation demonstrating that I am a
resident. I look forward to the Committee completing its Senate-wide review.
From: Nigel Wright
To: Chris Woodcock Joanne McNamara; Ray Novak; Andrew MacDougall
Subject: Re: Duffy Statement
#21
Agree. But let this small group be under no illusion. I think that this is going to end
badly. That is what Sen. Tkachuk strongly implies. I will try to understand the facts,
but David is not an alarmist and is not a poor manager of this process.

From: Michael Duffy
Subject: Version #3 when do you want to release this? -mike
#22
As a Prince Edward Islander, born and bred, I am proud to represent my province

and its interests in the Senate of Canada.
I represent taxpayers with care, and Canadians know I would never do anything to
betray the public trust. I have a home in Prince Edward Island as required by law.
Like all other Senators, I have provided the Senate Committee on Internal Economy,
Budgets and Administration with documentation demonstrating that I am a resident. I
look forward to the Committee completing its Senate-wide review.
To: Michael Duffy
Cc: David Tkachuck
Subject: Re: Version #3 when do you want to release this? -mike
#23
Mike, seriously do not send this out tonite. We need to talk tomorrow.
To: Michael Duffy
Cc: David Tkachuk; Carolyn Stewart-Olsen
Subject: Re: Version #3 when do you want to release this? -mike
#24
Mike. Chris Montgomery has been keeping PMO in the loop on this. Will decide first
thing in the morning. Marjory

To: Nigel Wright; Joanne McNamara; Ray Novak; Andrew MacDougall
Subject: Re: Duffy
#25
The statement didnt go out last night. Apparently the Senate is still sending their
messages through those vacuum tubes installed in Centre Block.
From: Christopher Montgomery
To: Chris Woodcock; Remi Moreau
Cc: Johanna Quinney
Subject: Duffy
#26
The Steering Committee of Internal Economy has taken the decision to lump Duffys
residency claim in with those of Harb and Brazeau for auditing. This will be
indicated by media release before the day is out.
From: Michael Duffy
To: [Solicitor-Client Privilege]
Subject: [Solicitor-Client Privilege]
#27
External Auditors to Review Residency Declarations

OTTAWA (February 7, 2013) Senator David Tkachuk, Chairman of the Standing
Senate Committee on Internal Economy, Budgets and Administration, announced
today that the appropriate subcommittees of the Internal Economy Committee have
referred the residency declarations and related expenses of the following three
Senators to external auditors at Deloitte for review and report: Senator Brazeau,
Senator Harb and Senator Duffy.
From: Nigel Wright
To: Chris Woodcock Joanne McNamara; Ray Novak; Andrew MacDougall
Subject: Re: Duffy
#28
Spent the last hour on various phone calls with Mike, David Tkachuk, and Marjory.
David still needs to work it out, so it is only a 90% certainty level, but what will
likely happen is that at 9:10 Friday the release will go out stating that Harb, Brazeau,
and Duffy expense cases are being referred to an external auditor.
Concurrently, a separate release would go out stating something like with respect to
Sen. Duffy, the Chair / Committee has requested external legal advice on the
meaning of the terms resident and primary residence.
The purpose of this is to put Mike in a different bucket and to prevent him from
going squirrelly on a bunch of weekend panel shows. Ray, Mike is very pleased with
this, so it will give us a bit of time if David can pull it off. David is making his calls
now to the Senate Clerk and the other two committee members, but I think he will
get it done. Marjory is fully on board.
9

From: Ray Novak
To: Nigel Wright; Chris Woodcock Joanne McNamara; Andrew MacDougall
Subject: Re: Duffy
#29
Thanks, this is very helpful context.

Im hoping Sen.Tkachuk and the others have some sense of what the legal advice
may be regarding residency.
Seems incredible this has not been an issue until now.
To: Nigel Wright; Marjory LeBreton
Cc: Sandy Melo
#30
I just got off the phone with Tkachuk. On the advice of the Clerk, they are going to
say that the Chair and Deputy Chair of the committee have requested independent
legal advice as opposed to referring to the Steering Committee so as to not make it an
official process in order to protect Senator Duffy.
They will use the language agreed simply replace steering committee with chair
and deputy chair of the committee.
Tkachuk boards his flight in 30 minutes and has asked me to let him know before
then if you have any problems with this.
From: Nigel Wright
To: Christopher Montgomery; Marjory LeBreton
Cc: Sandy Melo
#31
This works.
I think they could say independent legal advice regarding the definitions of
resident and primary residence or something like that to describe the advice that
is being sought. The critical thing is that it have a reference to with respect to
Senator Duffy in it. Mike is pleased that he is being differentiated in some way. I
think it buys a bit of time.
To: Nigel Wright; Christopher Montgomery
Cc: Sandy Melo
#32
I agree with Nigels comments. I think this will get us to where we want to go.
10

From: Nigel Wright
To: Ray Novak; Chris Woodcock; Andrew MacDougall; Joanne McNamara
Cc: Sandy Melo
#33
My own view is that one would interpret the constitutional requirement through a
purposive approach. Its purpose was to ensure that Senators would represent the
provinces from which they were appointed. I believe that Mikes ownership of
property there, time spent there, and engagement with the political life of the
province would likely meet the constitutional test. As regards Senate expenses, the
concept of a primary residence implies the existence of at least one other residence.
So Mike could be primarily resident in the NCR for expense rules and still
constitutionally resident in PEI. That leaves the very big problem of his having
collected $900 per month. The only plausible ways out of that are (i) it was wrong
and he has to be disciplined and/or repay, or (ii) there was ambiguity so it will be
clarified and he will not claim the amount going forward. Marjory assures me that no
other CPC Senator claims the $900 per month in similar circumstances. Mike said
that no one ever told him he shouldnt be doing it.
From: Nigel Wright
To: Ray Novak; Christopher Montgomery; Joanne McNamara
#34
Apparently David Tkachuk has this worked out.

From: Michael Duffy
To: David Tkachuk
Subject: Depending on what u say in your release
#35
8 Feb 2013
Statement by Hon. Mike Duffy, Senator Cavendish PEI
As a Prince Edward Islander, born and bred, I am proud to represent my province
and its interests in the Senate of Canada.
I represent taxpayers with care, and Canadians know I would never do anything to
betray the public trust. I have a home in Prince Edward Island as required by law. I
have retained legal counsel, and will vigorously defend against suggestion that I am
not qualified to be a PEI Senator. I will have no further comment until this review is
complete.
The relevant legal reference is attached.
From: Nigel Wright
To: Chris Woodcock; Julie Vaux; Andrew MacDougall
Cc: Ray Novak; Joanne McNamara
Subject: Fwd: Depending on what u say in your release
FYI. This is manageable.

11
#36

To: Nigel Wright
Subject: Re: Fwd: Depending on what u say in your release
#37
Thanks. Note theres a word missing here (any or the):

and will vigorously defend against suggestion
From: Nigel Wright
To: Chris Woodcock
Subject: Re: Fwd: Depending on what u say in your release
#38
Thanks Chris. Im not going to help Mike draft it!!

From: Michael Duffy
To: David Tkachuk; Carolyn Stewart-Olesn
Subject: Before you issue your news release
#39
7 Feb 2013
David:
After speaking to my lawyer, I now understand that the issue in question is not
whether I own property in PEI; but rather whether my principal residence is there,
thus entitling me to expenses for my home in Kanata.
If this is indeed the issue, then this is the first time a concern has been raised with me
by anyone. I have been claiming these expenses routinely, as I was told I could do at
the time of my swearing-in in 2009.
However if there is anything improper about these expense claims, I want to correct
it. I have no interest in claiming expenses to which I am not entitled.
Can we discuss this matter before you issue any media release naming me, as I
believe we can resolve this expense issue without the need of an audit.
From: Ray Novak
To: Nigel Wright
Subject: Fw: Before you issue your news release
#40
I presume you are getting these also

From: Nigel Wright
To: Ray Novak
Subject: Re: Before you issue your news release
Yes
12
#41
February 8, 2013, 11:06 am

From: Kim McKerracher [of Nelligan, Obrien, Payne]
To: David Tkachuk
Cc: Janice Payne; Marjory LeBreton
Subject: Senator Michael Duffy
#42
Dear Senator,
Please see the attached correspondence of todays date from Janice Payne. The original will
follow by courier. [Appendix A, Tab 2]
February 8, 2013, 12:20 am
To: Kim McKerracher [of Nelligan, Obrien, Payne]
Cc: David Tkachuk; Janice Payne
Subject: Re: Senator Michael Duffy
#43
Thank you. Marjory LeBreton.

News Release From Standing Senate Committee on Internal Economy, Budgets and
Administration
#44
External Auditors to Review Residency Declarations

OTTAWA (February 8, 2013) Senator David Tkachuk, Chair of the Standing
Senate Committee on Internal Economy, Budgets and Administration, announced
today that the appropriate subcommittees of the Internal Economy Committee have
referred the residency declarations and related expenses of the following three
senators to external auditors at Deloitte for review and report: Senator Brazeau,
Senator Harb and Senator Duffy.
As well, the Chair and Deputy Chair (Senator Furey) of the committee are seeking
legal advice on the question of Senator Duffys residency. [Appendix A, Tab 3]
February 8, 2013, 2:53 pm
From: Michael Duffy
To: Michael Duffy
Subject: David Tkachuk Expense rules for senators might be rewritten
#45
[News Article
[Senate Announces Outside Audit for 3 Senators: Expense Rules for Senators Might
be Rewritten by Leslie MacKinnon, CBC News] [Appendix A, Tab 4]
13

From: Michael Duffy
To: Michael Duffy
Subject: This prof raised this issue on my apt. Senate brass said ignore him
#46
[News Article
[The issue Isnt Just About Duffy, Letters to the Editor (The Guardian), by David
Bulger] [Appendix A, Tab 5]
#47
From: Michael Duffy
To: Michael Duffy
Subject: 60 days? David Tkachuk releases his version of Duffys time on PEI Outrageous!
[News Article
[Duffy Housing Flap Raises Questions about Wallins Eligibility to Sit in Senate,
Global News] [Appendix A, Tab 6]
From: Michael Duffy
To: Michael Duffy
Subject: CP version of intv with David Tkachuk
#48
[News Article
[Housing Flap plaguing Duffy, Wallin raises Questions about Senate Eligibility, by
Joan Bryden and Steve Rennie, The Canadian Press] [Appendix A, Tab 7]
14
February 8, 2013, 10:29 pm

From: Michael Duffy
To: Bill Curry [The Globe and Mail]; Michael Duffy
Subject: More not for direct attribution
#49
So if david tkachuk says it doesnt matter if pam has a sask health card, whats the
issue with me? I have spent countless weekeneds out on the rubber chicken circuit.
Does my time on the road detract from my claim to be a pei islander? If I had been
told this was a prob I would not have done those events.
-The rules as I understand them say a public event is public business. What about the
libs and their work outside Ottawa?
(I have never had a question from senate finance or anyone else about this issue. I
have been there for years. Why didnt they raise questions? Why now?
They have never presented me with any document asking for an explanation or
raising a concern about my residence.
-This process is unfair and I intend to challenge the unfair process.
-My lawyer is janice payne of nelligans in ottawa and we may have a media release on
Monday. I will of courst keep u in the loop. Mike
February 10, 2013, 8:01 pm
From: Michael Duffy
To: David Tkachuk; Carolyn Stewart-Olsen
Subject: Note from Mike Duffy re: legal fees
#50
10 Feb 2013
To: Hon. David Tkachuk
From: Hon Mike Duffy
Re: Legal fees
I am writing to inform you that I have engaged the services of Ottawa lawyer Janice
Payne to research the precedents and to advise me on the legal aspects of the current
audit.
As allowed in the rules; (see below) I request that The Senate agree to cover my legal
costs in connection to the current audit and investigation of my residence status.
Yours truly,
Mike Duffy
15. A Senator may charge legal research expenses to the Senators office budget, but
may not charge expenses for legal representation or for settlements or judgments.
[2007-06-21]
Legal Assistance and Indemnification
Policy
16. The Internal Economy Committee shall adopt a policy to provide Senators with
legal assistance and indemnification in appropriate circumstances. [2007-06-21]
15
February 11, 2013, 11:33 am

From: Janice Payne
To: Michael Duffy; Jill Anne Joseph
Subject: Re: Senate Policy Instruments relating to Residence and Travel
#51
Dear Ms. Joseph

I am writing to confirm that I am representing Senator Duffy in this matter. I would ask that
you provide me a duplicate of the package you are sending to Senator Duffy and would also
appreciate knowing who to contact at Deloitte.
Thank you.
February 11, 2013, 12:50 pm
From: Melanie Mercer
To: Janice Payne
Cc: Christine King; Michael Duffy
Subject: NCR expenses guidelines
#52
Hi there,
I came across this document as I was going through our files (attached). It was given to me
when I started my position with Senator Duffy, along with some other paperwork, to help me
process his travel claims, etc. Being new to the Senate, I had never had to process travel
claims, so this was all new to me. Senate Finance offered these documents as a reference to
start things off, and I was later given a tutorial with a Senate Finance clerk (Maggie
Bourgeau).
Ive made a few sidebar notes, which may or may not be useful.
If there is anything else that I can help with, please dont hesitate to ask.
16
February 11, 2013, 1:46 pm

From: Patrick Rogers
To: Nigel Wright; Ray Novak; Joanne McNamara; Chris Woodcock
Subject: Senate Residency and Expenses
#53
Here is an update on Senate conversations that I have had.

I am not sure if there have been other discussions but here is what Ive got.
1. Senator LeBreton and Liberal Leader Cowan have written to the Senates Internal Board
asking them to recoup expenses determined to be inappropriate regarding second homes.
The letter also asks that the process be sped up. This letter has gone and Montgomery
says that this is consistent with PM direction on this. I am worried that this letter has
pretty much hooped Senator Duffy.
2. Senator LeBreton is prepared to put forward a motion asking the Rules Committee to
define residency and draft rules that require Senators to provide proof of residency each
session and for the Senate Clerk to release the names of those Senators who fail to do so.
Montgomery says that hes confident that they will be able to come up with something
about where you pay taxes and that work is underway but I am concerned that there is
a let the sinners hang mentality at the moment.
3. On Brazaeu, the Senator is prepared to table a two part motion that will force him on a
leave of absence and cut him off expenses. However, also included in this is that the
Senators absence be considered under rule 15-1(3)a. In English, it means his absence
will be considered Senate Business. This means he will avoid being fine $250 a day
for each absence. Montgomery tells me that this is also written into an automatic forced
leave of absence if he had been tried under an indictable offence but its worth flagging
in our own homemade motion we are keeping the taps on.
February 11, 2013, 1:51 pm
From: Nigel Wright
To: Patrick Rogers; Ray Novak; Joanne McNamara; Chris Woodcock
Subject: Re: Senate Residency and Expenses
#54
I met with Duff today. He will repay, with a couple of conditions, including that admitting to
a primary residence in Ottawa does not disqualify him from representing PEI in the Senate. I
am meeting Sen. Tkachuk tomorrow. Can the leadership PLEASE coordinate every move
with us before taking ANY steps?
February 11, 2013, 1:58 pm
To: Nigel Wright; Ray Novak; Joanne McNamara; Chris Woodcock
#55
Coordination is the least we can ask for. I am touching base with everyone in the office.
17
February 11, 2013, 3:44 pm

From: Lucille Pronovost
To: Janice Payne; Michael Duffy;
Cc: Jill Anne Joseph
Subject: Re: Senate Policy Instruments relating to Residence and Travel
#56
Dear Mrs. Payne,

Melanie Mercer, Executive Assistant picked up both yours and Senator Duffys copies
earlier this afternoon. The contact at Deloitte is Mr. Gary Timm, his telephone number is
(613) 751-5378 and his e-mail address: gtimm@deloitte.ca
Thank you.
February 11, 2013, 4:21 pm
#57
From: Michael Duffy
To: Nigel Wright; Chris Rootham; Janice Payne
Subject: Fw: SENATE: Letter from Senate Leadership to CIBA / SNAT: Lettre des leaders du
Snat au Comit de la rgie interne
[Attached letter to Senator Tkachuk and Senator Furey.] [Appendix A, Tab 9]
February 11, 2013, 5:05 pm
From: Michael Duffy
To: Nigel Wright
Subject: Duff at 613-254-8411
#58
What does Marjorys letter mean for our talks?

February 11, 2013, 5:21 pm
From: Nigel Wright
To: Patrick Rogers
Cc: Ray Novak; Joanne McNamara
Subject: Fw: Duff at 613-254-8411
#59
Patrick,
Please convey my thanks to Sen. LeBretons office for making this more difficult.
Nigel
February 11, 2013, 5:23 pm
From: Nigel Wright
To: Michael Duffy
Subject: Re: Duff at 613-254-8411
#60
I had no foreknowledge of it. When I learned of it I asked for all unilateral action from that
office to cease before being cleared with me. I was not pleased On its face, it does not make
our task more complicated I think, although the with interest is new to me.
18
February 11, 2013, 5:23 pm

From: Ray Novak
To: Nigel Wright; Patrick Rogers
Cc: Joanne McNamara
#61
Why on earth did their letter to the committee have to be public? Its as though there is a
deliberate strategy to feed every media cycle with this.
February 11, 2013, 5:25 pm
From: Nigel Wright
To: Ray Novak; Patrick Rogers
Cc: Joanne McNamara
#62
Exactly. And why share the credit with Cowan? And why do it without knowing the
consequences of the statement. Will all of Sen. Wallins expenses be found to be improper
technically but morally acceptable?
To repeat Patrick, no further action from that office at all without pre-clearance with us.
February 11, 2013, 5:27 pm
To: Nigel Wright; Ray Novak
Cc: Joanne McNamara
#63
Joanne and I are calling Sandy now.

February 11, 2013, 5:54 pm
To: Marjory LeBreton
Cc: Sandy Melo
Subject: Duffy
#64
I gather he is upset about the letter. Not sure to what degree but I got a call from Patrick
Rogers so I imagine he is making the rounds again tonight.
February 11, 2013, 6:26 pm
From: Sandy Melo
To: Marjory LeBreton; Christopher Montgomery
Subject: Re: Duffy
#65
I just got a call from Joanne McNamara. She and Nigel are asking for a heads up BEFORE
letters are sent to media and not at the same time. Obviously now because issues are so
sensitive.
19
February 11, 2013, 6:28 pm

To: Marjory LeBreton; Sandy Melo
Subject: Re: Duffy
#66
Ill go back and look but I swear I told Remi in issues that we were releasing it to the media.
February 11, 2013, 6:27 pm
From: Joanne McNamara
To: Patrick Rogers; Nigel Wright; Ray Novak
#67
Sandy sends apologies.

She thought this was done.
She now clearly understands and will comply on future actions being considered.
20
February 11, 2013, 7:06 pm

From: Michael Duffy
To: Nigel Wright
Subject: My lawyer writes
#68
Possible bullet points for discussion with Nigel

-
Your lawyers say that there is no doubt that you meet the constitutional qualifications to
be senator of PEI. You own property worth over $4K and you are resident in PEI for at
least some of the time; there is no requirement that you be resident year round or that
your primary residence be in PEI. Your lawyers are satisfied that there is no risk here.
The only issue is whether your primary residence is in PEI for purposes of claiming
expenses for your residence in the NCR.
In support of that, you spent significant $ to convert your seasonal residence to a year
round residence following your appointment, your cars are registered in PEI, you carry a
PEI drivers license, and you spent about 100 days in PEI last year separate and apart
from your time on the road and the time you had to be in Ottawa for senate business. No
one raised a concern about your expense claims until now.
While we dont have complete documents for past policies (we do need to get these), we
do have a copy of the Guidelines in effect in June of 2010 dealing with Senators Living
Expenses in the NCR (provided to us today) which state that in order to claim living
expenses in the NCR a senator had to file with the Clerk and keep up to date a
declaration designating a primary residence in the province or territory represented by
the senator. It wasnt stated that this had to be your only primary residence for all
purposes and the implication is that you might properly have more than one, that this
spoke to your primary residence in PEI.
If this matter does proceed, we need to get complete policy documents for the entire time
since your appointment but our initial impression is that Senate policy was not clear.
At all times you believed you were properly claiming expenses given the investment you
made to make your PEI residence a year round residence following your appointment
and the amount of time you spent in the province.
The Senate revised its policy language effective June 2012 and arguably added a clearer
definition of primary residence that does not appear in the 2010 document and may
well have been new in 2012.
If it would settle the matter you would repay back to June of 2012 and not claim
expenses going forward unless the policy is further revised to make it clear that you can
claim expenses or your personal circumstances change so that it is clear that PEI is your
primary residence.
You would need assurance that you will be removed from the audit, your legal expenses
will be reimbursed pursuant to Senate policy and a mutually acceptable media release
will be issued confirming that you have repaid arrears owing since the travel policy was
clarified in 2012 and are not claiming expenses going forward
As an alternative, you would agree to repay any arrears found by Deloitte to be owing
A third alternative would be to pay all of the arrears with the coverage of legal fees by
the Senate and a mutually acceptable media released confirming that you have repaid all
arrears although you believed at the time and maintain that the expense claims were
proper.
21
February 11, 2013, 8:33 pm

From: Nigel Wright
To: Ray Novak
Subject: Fw: My lawyer writes
#69
See the third alternative right at the very end.

February 11, 2013, 8:33 pm
From: Nigel Wright
To: Michael Duffy
Subject: Re: My lawyer writes
#70
Mike,
I will meet with Sen. Tkachuk on Tuesday and understand more about their process and the
instructions that have been given to their outside advisors.
Nigel
February 11, 2013, 8:38 pm
From: Michael Duffy
To: Nigel Wright
#71
I wud like to see the language of the rules before 2010. My lawyer says it is very vague. And
it changed again in 2012. Why is marj agreeing to anything with cowan. The more this goes
on the more I am punished financially. U know about the elxn for caucus chair tomorrow.
Don plett will beat rose mar poirier because the rank and. File are pissed at Marjory about a
lot of issues. Fyi. Mike
February 11, 2013, 8:40 pm
From: Ray Novak
To: Nigel Wright
#72
Im unsure of the Senates approach to legal fees, but from an issues management
perspective that would certainly staunch the bleeding. I assume the Libs would demand same
treatment for Harb.
February 11, 2013, 8:41 pm
From: Nigel Wright
To: Ray Novak
#73
Mike (or his lawyer) has a theory that he is covered under some Senate policy. I doubt it, but
will not challenge that until we have more agreement on the main issue.
22
February 11, 2013, 8:51 pm

From: Nigel Wright
To: Patrick Rogers; Ray Novak; Joanne McNamara; Chris Woodcock
#74
#1. Sen. Duffy feels hooped.

#2. Nothing without our prior approval. We will not set anything in motion without knowing
where we want it to end up and how we will make that happen.
#3. This is how I read the Senate rules about indictable offences, and this makes sense to me.
You cannot put someone on a leave of absence that permits them to show up once or twice a
session to avoid being kicked out, yet fine them for the days they dont show up. I think that
even the media and the NPD will get that.
February 11, 2013, 10:47 pm
From: Michael Duffy
To: David Tkachuk
Subject: Policy docs
#75
David:
I would like to get this issue settled ASAP. But I cant frame a response if we dont have the
rules.
We dont have anything but the policy in effect in June of 2010, and the change in 2012.
We dont have what was in place before June of 2010 nor do we know what if anything may
have changed from June 2010 until June 2012. What language was in use in 2009 when I was
sworn in?
Is your complaint about ALL housing claims since 2009? If yes, then I have to see what
policy was in place at that time? How and when did it change? This is basic stuff, and your
staff have not provided it.
How can I settle this when my lawyer cant get the policies since 2009?
If we dont have this info by noon, I intend to raise this outrage at caucus.
Mike
February 12, 2013, 6:14 am

From: David Tkachuk
To: Michael Duffy
Subject: Re: Policy docs
#76
A package is being prepared. You asked for these documents on the weekend. I forwarded
info yesterday AM. To clerk. Mike have a look at the declaration you signed when you got
appointed and after the 2011 election. I am leaving for Ottawa this morning. Not sure if I will
make caucus. David
23
February 12, 2013, 7:33 am

From: Michael Duffy
To: David Tkachuk
Subject: Re: Policy docs
#77
David. They sent me a package. But they did not include policy before 2010. If the rules
were vague before 2010 I dont want to repay back to 2009.
February 12, 2013, 5:12 pm
From: Michael Duffy
To: Nigel Wright
Subject: Update?
#78
Anything to follow up? I am about to leave for the west end. will be home all evening. 613254-8411
February 12, 2013, 9:50 pm
From: Nigel Wright
To: Michael Duffy
Subject: Re: Update?
#79
I called you earlier Mike and missed you at home. At this point I need to plough through my
files and reading in order to get out of here in the next few hours. I could speak with you on
the margins of Caucus tomorrow.
February 13, 2013, 1:21 am

From: Michael Duffy
To: Nigel Wright
Subject: Re: Update?
#80
Thanks so much. See u then. Mike

February 13, 2013
#81
Faxed Letter
To: Michael Duffy

From: Michel Patrice (Deputy Law Clerk and Parliamentary Counsel)
[Response to email regarding Senator Duffys legal fees] [Appendix A, Tab 9]
24
February 13, 2013, 6:03 pm

To: Nigel Wright
Cc: Marjory LeBreton; Sandy Melo; Patrick Rogers
Subject: Residency
#82
Nigel,
I have attached an amended note that I wrote for Minister LeBreton last week on a possible
path forward. I continue to believe that this is an appropriate way forward that protects those
Senators caught up in the current debate and that would provide certainty moving forward.
First, an Order of Reference would be sent to the Rules committee instructing them to define
residency for the purposes of s. 31 of the Constitution Act, 1867. This is the exclusive right
of the Senate itself. This would address the primary concern of the media and public in this
matter.
Second, the committee would report back to the Senate with a recommendation that a
Senator must file taxes in the province from which they were appointed in order to qualify as
a Senator and provide an accountability mechanism. The committee would also recommend
a three month coming into force provision in order to allow Senators time to comply. We
have three Conservative Senators (Duffy, Patterson and Wallin) that filed their 2011 return in
another jurisdiction. Those Senators would have to be informed very clearly that their 2012
taxes must be filed in the jurisdiction they represent. I understand Duffy has already
indicated that he intends to do this. As we happen to be in tax filing season in just over two
weeks, this timeline happens to fit nicely. Provided the three Senators adhere to this one
requirement, they could be assured that they will not be at risk of losing their seats.
I have attached a draft motion. I will want to ask a couple questions of the Law Clerk and
minor amendments may be made as a result. But, the intent would remain. The reporting date
could also be easily changed. Our Caucus was agreeable to this approach but had concerns
over timing which we can address with them, I am sure. The Liberals also agree with the
order.
February 13, 2013, 6:10 pm
From: Nigel Wright
To: Christopher Montgomery
Subject: Re: Residency
#83
It has the benefit, Chris, of being a bright-line test, in the sense of being very easy to
understand, easy to comply with, and easy to verify. So the only question is whether it would
pass in the court of public opinion. I think it would because most Senators also have other
attributes of residence, but mostly because subjecting oneself to the taxation of a jurisdiction
makes one care about its public policy, which relates to the representational objective of s. 31
of the Constitution Act. I am comfortable with it. I will raise it at our Department Heads
meeting on Thursday to see if anyone spots a serious flaw that none of us sees.
25

To: Nigel Wright
#84
Had a good chat with Ben this morning. Im sure he filed you in. We will not give notice
today in order that we can speak to Caucus about it when we return on the 26ht and give
notice then. Tkachuk is also nervous about proceeding right now and feels he can be in a
position to address the current situation by the time we return on Tuesday.
From: Nigel Wright
#85
Thanks Chris. As I considered this idea further over night, I did conclude that we needed to
understand more about residency definitions for income tax purposes, which is why I asked
for the meeting with Ben on this. I have not yet spoken with Ben, but I will.
To: Nigel Wright
Cc: Christopher Montomgery; Sandy Melo; Patrick Rogers
#86
Hi Nigel I was persuaded by David Tkachuk and Chris that this rule change can easily be
dealt with when we return on the 26th when we have had a chance to brief our Caucus. We
could put the motion down on Tuesday and deal with it at Rules on Wednesday. I do believe
making this change would clarify and simplify the rules and get us away from other
impossible residency issues like how many days spent in one place or another. It is clearn,
clear and solves a host of problems and the timing is perfect just in time for the filing of
2012 Income Taxes. Marjory
February 14, 2013, 2:12 pm
#87
From: Christine King [Assistant to Janice Payne]
To: Gary Timm [Deloitte]
Subject: Deloitte Audit of Expenses Claimed by Senator Michael Duffy (Our File No.: 16138-2)
Dear Mr. Timm,
Please fine attached, in PDF format, a letter addressed to you from Janice Payne dated
February 14, 2013 with respect to the above-noted matter.
[Letter attached] [Appendix A, Tab 10]
26
February 14, 2013, 8:40 pm

From: Michael Duffy
To: Nigel Wright
Subject: Rubber chicken 2011 will be higher
#88
I asked David where he got 62 days. He said it was a quick guess based on a quick look at
the data. This not a guess. I would have been on PEI if not on the chicken run.
===
2009
81 days on PEI
87 events off-island
(168)
2010
128 days on PEI
40 events off Island
(168)
2011-2012 to come Friday pm.
md
February 14, 2013, 9:04 pm
From: Nigel Wright
To: Michael Duffy
Subject: Re: Rubber chicken 2011 will be higher
#89
Mike,
Thanks. When you have got it pulled together, I would appreciate seeing the back-up work
sheets.
Nigel
From: Nigel Wright
Cc: Christopher Montomgery; Sandy Melo; Patrick Rogers
#90
Senator,
What I did want Ben Perrin to assess is whether there is jurisprudence or interpretation
bulletins governing what is required for a taxpayer to claim to reside in a province for the
purposes of the Income Tax Act. I would love to pay Alberta income taxes, but I cannot
simply claim to reside there. We need to be sure that all of our Senators will truly be on the
right side of this bright line test.
Nigel
27

To: Nigel Wright
Cc: Christopher Montogery; Sandy Melo; Patrick Rogers
#91
I agree. We have to ensure that their signed declaration confirming the address of their
property/residence in their home province/territory and the filing of their 2012 income tax
meets the requirements of the Income Tax Act. I am not aware of any special instructions or
bulletins but we will check with the Clerks office to determine what procedures are
following. There can be no wiggle room here. Marjory
February 14, 2013 10:09 pm
From: Nigel Wright
To: Benjamin Perrin
Subject: Fw: Residency
#92
FYI
From: Benjamin Perrin
To: Nigel Wright
#93
Hi Nigel,
From my research into that taxation question, the residency requirement is comprehensively
addressed in the following CRA bulletin (which includes the test applying to provincial
residence):
Canada Revenue Agency, Income Tax Act: Determination of an Individuals Residence
Status (IT-221R3 (Consolidated)), online: [URL provided]
I shared this with Chris when we met yesterday morning. It is fairly comprehensive, but not
necessarily a bright line.
I also suggested we should consider the potential for an extraordinary circumstances
exception if, in an anomalous year, for serious medical like needing ongoing chemotherapy
or family reasons (eg), a person (ordinarily resident outside of Ontario) is found by CRA to
be resident in Ontario. The Senate Committee on Internal Economy (or whatever its full title
is) would have to hear such a case. I am just concerned that there could be a scenario where
CRA finds someone, in one year, to be an Ontarian who wed consider really should not be
disqualified as a result. At its core this concern arises because the purposes of section 23 of
the Constitution Act, 1867 are not precisely aligned with the purposes of the Income Tax
Act. However, I appreciate the need for clear rules which is why Im suggesting only a very
narrow, one-year, exemption from the CRA residence determination be possible for
exceptional circumstances and that be determined by Committee on a case specific basis.
I hope this is helpful.
28
February 15, 2013 11:01 am

From: Internal-Regie [ciba@sen.parl.gc.ca]
To: Janice Payne
Cc: Marjory LeBreton; Lucie Lavoie; Michel Patrice
Subject: Letter from Senator Tkachuk dated February 14, 2013
#94
Good Morning,
I was asked to forward this attached letter to you. The original letter has been sent by regular
mail.
From: Michael Duffy
To: Nigel Wright
Subject: PEI Residency ruling
#95
Nigel:
A friendly lawyer from Truro NS just called and told me about a case he had in PEI which
could be helpful.
On PEI Supreme Court judges handle small claims cases.
On March 1st, 2012; Mr Justice Benjamin Taylor of the PEI Supreme Court ruled that merely
owning a summer cottage in PEI gave the person Island residence.
The decision wasnt written, but delivered orally.
The Court number is: S1-SC 30067
Plantiff Bodrog Vs Magner
(He says you can get a cd of the transcript for $30.00]
In essence the case involved a contract dispute between a guy in Poland and a guy who lived
in Halifax over work performed in Ontario.
The plaintiff had run out of time in Ontario and NS, but when he learned that the NS mans
wife had inherited a summer cottage in Victoria PEI, they went to court in PEI which has a
longer statute of limitations on small claims.
In the event, Justice Taylor ruled that under PEI law, owning a summer cottage which was
only occupied for a few weeks a year constituted making the plaintiff a PEI resident.
I hope this is helpful to your lawyers.
Mike
From: Nigel Wright
To: Michael Duffy
Subject: Re: PEI Residency ruling
#96
Mike, I will forward this to our inhouse counsel. Nigel
29

To: Nigel Wright
Subject: Fw: Senator Duffy
#97
Duffy is the one troubled Senator I have not spoken to. Does what Drew is describing sound
like what you have arranged? I am happy to follow up and discourage any other media if not.
From: Nigel Wright
To: Chris Woodock
Subject: Re: Senator Duffy
#98
I have arranged no comms by him at all. Please do follow up with him I havent spoken to
him in two days (although have exchanged the odd email), so he might be feeling lonely and
isolated again.
To: Nigel Wright
#99
I thought that might be the case. Following up.

From: Nigel Wright
To: Benjamin Perrin
#100
I am gravely concerned that Sen. Duffy would be considered a resident of Ontario under this
ITB. Possibly Sen. Patterson in BC too. If this were adopted as the Senates view about
whether the constitutional qualification were met, the consequences are obvious.
To: Nigel Wright
#101
Privileged
This is concerning. The question asked was a tax law questions. We can try to come up with
a more flexible alternative, if desired, on the main question of what the residency
qualification means for Senators in the Constitution. The starting point would be that there
are different purposes animating the ITA vs the constitutional residency qualification for
Senators. Let me know if we want to explore other options re residency test. Im not saying
they would be easy or good.
30

From: Nigel Wright
To: Benjamin Perrin
Cc: Patrick Rogers; Chris Woodcock
#102
That was precisely my mandate to Sen. LeBreton. That offices response was to apply
income tax residency as the test for constitutional residency. My read of the interpretation
bulletin suggests to me that the idea will not work since a prime objective is not to disqualify
our sitting Senators.
I would if you and Patrick could work to suggest an approach to Chris Montgomery. My
earlier suggestion was that the Senate Rules committee (dominated by us) make a residency
determination for any Senator who asks for one to be made. It can suggest certain
documentary tests (drivers licence, health card, and also indicate qualitative criteria that
serve the constitutions purpose of ensuring that Senators have sufficient engagement with
the provinces they represent to be able to represent them effectively in the Senate.
To: Nigel Wright; Benjamin Perrin
Cc: Chris Woodcock
#103
Ben,
I am happy to discuss a legal way forward and how to push it through the Senate, whenever
you are available.
Patrick
Cc: Chris Woodcock
#104
Privileged.
This will take some thinking, I will get on it. I will try to formulate an approach and reply to
this chain with it.
February 16, 2013 12:09 am

To: Nigel Wright
Cc: Chris Woodcock; Patrick Rogers
#105
Privileged.
Attached is a pragmatic draft proposal for your consideration. It is defensible and should
enable desired outcomes, subject to cooperation by adjudicating committee members.
I spoke with Patrick earlier tonight for more context and to brainstorm in developing this
document, but hes not seen this in detail yet.
I would be pleased to hear your views.
31

From: Nigel Wright
To: Benjamin Perrin
#106
Ben,
This is very much what I am looking for. I have suggested a couple of changes in the
attached version. What I have not done in the attached version is deal with the concept of
and historically and including historically. In my view, this whole concept is better
addressed through words like over a period of time or over the years since appointment.
I do not think that we could defend an interpretation that a solely historical attachment can
underpin continuing qualification under the representational principle. Perhaps you could
consider that.
When we feel we have a final draft, I would like this discussed pleased with Chris
Montgomery. Getting something like agreed to by leadership, or perhaps adopted by the
Committee on rules and procedures, is all that stands in the way of Sen. Duffy paying back
his $32,000 and closing out this situation. I think it is also necessary to end speculation about
the qualification to serve of Sens. Wallin and Patterson, although both might have other
ongoing issues..
Nigel
[Draft proposal attached] [Appendix A, Tab 12]
To: Nigel Wright
#107
Thanks, Nigel. I am glad it is along the lines of what you had in mind. I will finalize it and
circulate it back to you for a final check. I can then meet with Chris M. (perhaps with
Patrick) on Monday morning to walk through it.
To: Nigel Wright
#108
A clean copy and track changes version of the revised memo is attached.
If you approve it, I can meet with Chris M to discuss it. If you have anything specific beyond
this documents contents that youd like me to convey in that meeting, please let me know.
Thanks
32

From: Nigel Wright
To: Benjamin Perrin
#109
Thank you Ben. I do not have any further comments. As for the meeting on Monday, I would
appreciate it if Patrick could go. You could walk Chris (and perhaps Sandy Melo) through
the reasons why the ITA test does not work and why this is a better approach. Patrick can
focus on detailing a plan for them to actually have the appropriate Senate committee adopt
this set of principles and, either systematically or upon request of Senators who wish to have
their constitutional residency, determine the residency for qualification purposes of Senators.
The committee should start with those whose residency has been impugned. It should
proceed by way of in camera interviews with such Senators. The determination and brief
reasons will have to be public. Speed, at least for Duffy, is of the essence.
Patrick, we are going to need to manage the briefing of the Conservative Senators (including,
hopefully Chair) of the Committee. If the Rules and Procedures committee doesnt have the
right membership, then the Senate by motion should constitute a special committee that will
have the right Senators on board. We cannot rely on the Senate Leaders office to get this
right.
Well have to do this in a way that does not lead to the Chinese water torture of new facts in
the public domain, that the PM does not want.
I am open to other suggestions, of course.
To: Benjamin Perrin; Nigel Wright
Cc: Chris Woodcock;
#110
The chair of the rules committee is David Smith.

Because the actions of committees are dictated by the Senate, I think we can slam it through
despite a Liberal chair in a way that you would approve of. Well draw something up.
Patrick
February 16, 2013 10:34 pm
To: Patrick Rogers; Nigel Wright
Cc: Chris Woodcock;
#111
I will book the meeting. When you say reasons, do you mean both the legal reasons as well
as the practical\political ones? Not sure how much you want the letter emphasized with them.
33
February 17, 2013 12:07 pm

From: Nigel Wright
To: Patrick Rogers; Benjamin Perrin
Cc: Chris Woodcock;
#112
Practical / political ones. The others are well laid out in the document. Thx.
34

From: Nigel Wright
Cc: Chris Woodcock;
#113
I think we should lay out the approach in a brief memo to the PM. It would outline the
approach we intend to take at Senate committee to settle residency questions, and would
append Bens guidelines as akin to what the committee would adopt.
Cc: Chris Woodcock;
#114
Nigel: I assume we should defer the meeting with Chris M and Sandra that Id set for this
morning to await the return?
Patrick: let me know if theres anything else youd need from me to draft the memo.
From: Nigel Wright
Cc: Chris Woodcock;
#115
No, I think we should move ahead with that meeting to brief them, but not have anything go
to Senators other than MLB and nothing to the Committee until we have a return.
Cc: Chris Woodcock;
#116
Ok
From: Nigel Wright
Cc: Chris Woodcock;
#117
Because I want them off the track they are on.
35

Cc: Chris Woodcock;
#118
Gotcha. Will do.

February 18, 2013 11:25 am
Cc: Chris Woodcock;
#119
Nigel,
Ben and I have made clear to Chris Montgomery (Sandy did not attend) that the Income Tax
Act change will not work.
I also stressed that this must be done quickly and without the normal time consuming Senate
niceties.
Based on Montgomerys response it is clear to me that Ben and I should brief Senator
LeBeton directly. Chris simply does not believe in our goal of circling the wagons. Because
of this lack of buy in, it was impossible to discuss meaningfully the parliamentary strategy.
I will work with Ben to get something for the Prime Minister tonight,
Patrick
36

From: Nigel Wright
Cc: Chris Woodcock;
#120
Sen. LeBreton agrees that Chris might not be fully on board. I think she now understands that
this is the approach to take (unless the PM disagrees, but I am sure that his comment will be
more about how long it will take and whether we get things fixed in one fell swoop or
whether we continue to dribble out Senate news over weeks and months so that the story
never dires).
I told Sen. LeBreton that Ben and Patrick would be over to gather any comments she has on
the guidelines. I asked her to think about whether Rules and Procedures or a specially
constituted committee should be the venue. Honestly, she needs firm direction on how to get
it done, and we cannot assume that the office can execute, partly because she and the whole
office are curiously hands-off when it comes to how the Senate Clerk, committees and
subcommittees go about their business. I go not satisfaction from my discussion with her that
she will actually take charge, call in all the people on our side how have to make it happen
and give them clear marching orders. The discussion was all a bit of a haze, with a blurring
together of expenses matters being considered by the Internal Economy subcommittee with
the constitutional residency issues.
The bottom line is that I will look to you Patrick, involving Ben, me, and Joanne as much as
necessary, to coordinate this and make it happen. I am completely willing to expend some
time, because getting confirmation of qualification residency is all that is needed to close out
the Duffy situation and likely the Patterson situation and to stop our public agony on those.
Ben can brief whomever on the Senate side on the guidelines and coordinate input that is
worthy of being accepted.
Sen. Tkachuks subcommittee is interviewing Zimmer and Patterson today or tomorrow.
Why? I think that they both have qualification residency issues, so I am concerned that the
interview is about more than just expenses. I get the impression that Sen. Tkachuk is too led
around by the Clerk and by counsel, so I am dubious that he will get the residency thing
resolved definitively, correctly, and quickly. If you want to set up a call with me and him,
please feel free. Chris Montgomery is going to a meeting of that subcommittee today
please quiz him on what is going on there and where peoples heads are at. If they continue
to blend separate issues together (like qualification residence vs primary residence), then
were in a morass.
In the meantime, Sen. LeBreton is expecting a meeting with Ben and Patrick. She agrees
with everything at one level, but Im not sure how well it is internalized.
Nigel
37

Cc: Chris Woodcock;
#121
I have a call in to Sandy to line up with the meeting with Senator LeBreton.
In writing the memo to the PM on the change I will highlight some of the timing issues and
outline different scenarios for our plan to pass.
I will speak to Montgomery later in the day to get a heads up on Tkachuks sub-committee.
Following that conversation well likely have to speak to Tkachuk as well.
Cc: Chris Woodcock;
#122
One of the major stumbling blocks that I can predict is Senate Caucus on Tuesday. The
closed door nature of it is completely at odds with our goals here.
We should think about who we want to present the plan and who we want in the room to
ensure that Senators have answers and we have the necessary feedback.
Patrick
From: Nigel Wright
Cc: Chris Woodcock;
#123
Maybe we should present the plan.

Memo: 2012 02 18 Senate Residency Issue.doc
From: Patrick Rogers; Ben Perrin
To: Prime Minister
Cc: Nigel Wright; Joanne McNamara; Ray Novak; Chris Woodcock
Re: Senate Residency Issue
[Copy of Memo attached] [Appendix A, Tab 13]
Maybe we should present the plan.
38
#124

Cc: Chris Woodcock;
#125
Nigel,
Sandy has informed me that the Senator is unavailable today.
The Senator would like to let us know that she has assurance from the Clerk and the Law
Clerk that the only way to challenge the residency of a Senator is for another Senator to do so
in the Chamber.
Since this would be the case even after the motion that we have discussed, the Senator feels
that there is no need to have a motion. She feels that the assurances of these people that
Senator Duffy cannot be removed should be enough for Senator Duffy.
Senator LeBreton plans to call you tomorrow morning to discuss this further.
I will add that Sandy made reference to the fact that the audit will be made available to the
committee early next week and then the Senate by Wednesday. She also talked matter of
factly about sending the issue of Primary and Secondary residence to the Rules committee to
tighten the regulations. I warned her that off the top of my head, it doesnt sound like a good
idea.
Ben and I wrote a note for tonight but have pulled it to see what the outcome of the
conversation with the Senatore is. If we decided to follow the Senators advice and do
nothing, the memo becomes moot.
The ever changing advice and equally changing messengers is exasperating the difficulties in
communicating with this office. Today alone, we have heard separate things from all three
major actors in the office. If you agree to speak to the Senator tomorrow, I recommend that
we all attend and come to ground on some of these major decision points, including the roll
out of the audit and any future references to the Rules Committee.
Patrick
From: Nigel Wright
Cc: Chris Woodcock;
#126
Thanks. I have just received this now and obviously we have discussed it. I will circle back
after my convo with Sen. LeBreton tomorrow.
39
February 19, 2013 10:22 am

#127
From: Ray Novak
To: Patrick Rogers; Benjamin Perrin; Nigel Wright; Joanne McNamara; Chris Woodcock
Cc: Myles Atwood
Subject: Return on Senate Residency note
PM return on this note reads:
I feel very strongly on Option 1. Had I known we were going down this road I would have
shut it down long before this memo.
On page 3 he has checked option 1 and written:
As long as they maintain a residency in their province, as per tradition, we will deem that as
sufficient for this purpose (as opposed to expenses), i.e. the property requirement =
residence. Also, as a practical matter, all the Senators in question spend more than a trivial
amount of time in their province. This issue is about $s, not this.
February 19, 2013 10:55 am
To: Ray Novak; Patrick Rogers; Nigel Wright; Joanne McNamara; Chris Woodcock
Cc: Myles Atwood
Subject: Re: Return on Senate Residency note
#128
SOLICITOR-CLIENT PRIVILEGE
Very clear direction. Who will communicate it to Sen. LeBreton / her office?
For your information only, on the implications of the test set down by the PM:
If any Senator formally challenges another Senators constitutional residency requirement,
the PM has set out a bright line test: if a Senator satisfies subsection 23(3) of the Constitution
Act, 1867 (see below), then he or she would be deemed to have satisfied the residency
requirement in subsection 23(5).
I point out for your information only that this approach may appear to run counter to the
basic interpretative principle of a presumption against redundancy deeming through
interpretation one qualification to satisfy another distinct qualification makes the latter
redundant.
Here is a brief description of the principle against redundancy from Tower v. M.N.R.
(F.C.A.) 2003 FCA 307, [2004] 1 F.C.R. 183 at paras. 15-16 it applies to constitutional
interpretation also:
The governing principle has been described in Ruth Sullivan, Sullivan and Driedger on the
Construction of Statutes, 4th ed. (Markham: Butterworths, 2002), at page 158: It is presumed
that the legislature avoids superfluous or meaningless words, that it does not pointlessly
repeat itself or speak in vain. Every word in a statute is presumed to make sense and to have
a specific role to play in advancing the legislative purpose. The same principle is expressed
as follows by Iacobcci J. in Communities Economic Development Fund v. Canadian Pickles
Corp., [1991] 3 S.C.R. 388, at page 408: It is a principle of statutory interpretation that
every word of a statute must be given meaning: A construction which would leave without
effect any part of the language of a statute will normally be rejected (Maxwell on the
Interpretation of Statutes (12th ed. 1969), at p. 36).
[Includes excerpt from Constitution Act, 1867, s. 23(3) and 23(5)]
40
February 19, 2013 11:00 am

#129
From: Nigel Wright
To: Ray Novak; Patrick Rogers; Benjamin Perrin; Joanne McNamara; Chris Woodcock
Cc: Myles Atwood
I will advise Sen. LeBreton that we will not take any steps in the Senate to address residency
for 23(5) purposes unless anyone challenges the qualification of any of our Senators, in
which case we will defend (and defeat any motion regarding) any Senator who owns
property in the correct province and division.
I will advise Sen. Duffy that we will defeat any challenge to his residency for 23(5) purposes,
and advise him to settle that expenses matter promptly.
I will not communicate the PMs view that ownership of property equates to residence for
23(5) purposes as it is not necessary to do so at this time.
I do think that we will need responsive lines averring that Sens. Duffy, Wallin, and Patterson
are residents of the PTs they represent without getting into constitutional exegesis. We would
point to their property ownership and deep, continuing ties.
Nigel
To: Ray Novak; Patrick Rogers; Benjamin Perrin; Joanne McNamara; Nigel Wright
Cc: Myles Atwood
#130
Proposed Lines:
* We have committed to ensuring that all expenses are appropriate, that the rules governing
expenses are appropriate and to reporting back to the public on these matters.
* All Conservative senators meet the Constitutional qualifications to sit in the Senate.
* Senators Patterson, Wallin and Dufy own property in the provinces and territory they
represent and maintain deep, continuing ties to those regions. All three Senators spend
considerable time in their home provinces and territory,
* The best way to assure representation in the Senate is to have Senators selected through
democratic elections.
On Specifics:
* Senator Patterson is a former Premier who has served the people of the Northwest
Territories and Nunavut for 34 years. He owns property and maintains a residence in Iqaluit,
Nunavut.
* Senator Wallin was born and raised in Saskatchewan and owns a residence in the Town of
Wadena.
* Senator Duffy was born and raised on Prince Edward Island and owns a home in
Cavendish. He maintains a winter residence in Charlottetown during the winter months.
41

To: Ray Novak; Patrick Rogers; Benjamin Perrin; Joanne McNamara; Nigel Wright
Cc: Myles Atwood
#131
Describing Duffys arrangements in Charlottetown as a residence may be too cute. Ill

cross that line out. For info, he has said to reporters that he lives in Charlottetown in the
winter when his place in Cavendish is snowed in.
#132
From: Nigel Wright
Cc: Myles Atwood
Some suggested changes in the last two lines.
[Made edits in original email. The suggested changed lines are as follows]
* Senator Duffy was born and raised on Prince Edward Island and owns a home in
Cavendish.
* All three are tireless representatives for their provinces / territory and always spend
considerable time there.
#133
From: Nigel Wright
Cc: Myles Atwood
He told me in the last couple of weeks that he stays in a hotel in the winter because if he has
a heart attack he wouldnt be able to get to a hospital quickly enough from Cavendish,
particularly after snow. It was his wifes rule. He says that he will produce hotel receipts (he
says he pays for the hotel out of his own pocket and does not claim reimbursement).
42

From: Nigel Wright
Subject: Your letter
#134
Thanks Marjory,
I had seen the email that Mike sent to David T. I will be calling Mike today or tomorrow to
move to the final step of resolution. FYI only, I offered to him (with Irvings prior approval)
to have the Party pay his legals if they are reasonable. I will let you know as soon as I have
anything definitive.
We seem to be on the same page regarding the Senates way forward. I do not actually
understand why the Senate subcommittee asked for the four indicators from someone like
Sen. Patterson, who clearly does not maintain his primary residence in the NCR. I have never
heard that he charged for inappropriate expenses, which is the subcommittees mandate, or
so I thought. They should not put themselves in the position of opinion about where he lives
unless that is necessary to determine the validity of any of his expense claims. Is there
someone I can go to for clarification of that?
I would expect that Sen. Wallin would be given the opportunity to address any unusual
expenses through repayment if that is appropriate, as she has already done with some
inadvertently claimed. I know the PMs stated view on the stop-overs on the way to and from
home, which I could express to you verbally if you have not heard it directly.
We need to ensure that further statements by our Senators on this, particularly David, are
coordinated with PM, as words like unusual have caused problems.
I do appreciate how you are managing this.
Nigel
From: Nigel Wright
To: David van Hemmen
Subject: pls schedule a call w Sen. Duffy, thx
#135

From: Michael Duffy
To: Chris Woodcock
Subject: Your fax number pls. Mike
#136

To: Michael Duffy
Subject: Re: Your fax number pls. Mike
#137
613-957-5514
43

From: Marjory LeBeton
To: Nigel Wright
Subject: Re: Your letter
#138
Thanks Nigel. I agree with you that not enough thought was given to the Internal Economy
directive putting down the four markers and when I asked on what basis was this decision
made, I was told that the Law Clerk advised that these would be the normal pieces of
identification one would provide to establish residency. In all my years in the Senate, I have
never seen rules or guidelines that were so specific. The Committee obviously did not factor
in what they hoped to achieve at the end of the process and unusual cases like Senator
Patterson clearly were not considered. In his case, the flights back and forth to BC (his home)
raised a red flag because Nunavut is his region. As far as I know, there are no unusual issues
with his normal Senate related expenses. We worked all this out when he was appointed
because of the uniqueness of the North and I am confident that we will resolve his issues. He
has an Ont drivers license because he keeps a car in Ottawa. This makes sense and should
have no bearing whatsoever on his status as a Senator. I will seek clarification for you, going
back to the arrangements made when he was appointed.
With regard to Senator Wallin, this is a separate audit going back to last Fall, as you know!
At the end of the day, she likely will be required to write a chque to the Rec Gen for claims
that are deemed to be unrelated to Senate business. That will be for her to work out directly
with the auditor and Senate Administration. On the issue of stop-overs, we will speak
personally but I am sure you, the PM and I are all on the same page.
On the Communications front, I have spoken to David so many times that Ive lost count but
will do so again tomorrow. I am surprised at how undisciplined he is and while he has had
communications problems in the past, he has had some real challenges with this issue. He is
a good guy and a team player and I will ask him to take Carolyns advice if for some reason
it is necessary for him to comment as the Chair of Int Economy. Carolyn S-O who, I must
tell you, has been really solid as she works to get some message control is heading up a three
person Committee to coordinate talking points and general messaging coming out of the
Internal Economy Committee. Judith Seidman and Joan Fraser are the other two assisting
her. My office will work very closely with PMO and Carolyn as we go forward. We are
making progress! Thanks again, Marjoy
From: Nigel Wright
To: Ray Novak; Patrick Rogers; Chris Woodcock
Subject: Fw: Your letter
#139
Sen. Stewart-Olsen is, apparently, managing Senate communications! So, Chris and Patrick,
we have to factor her into the team we are managing there.
44

From: Chris Woodock
To: Michael Duffy
#140
I havent received a fax from you.

From: Michael Duffy
To: Chris Woodcock; Nigel Wright
#141
I was going to send u letter from my heart doc. My lawyer also wants the letter of
instructions to delitte outlining the scope of their work re me. Nigel says his analysis is I am
in violation of the housing allowance policy she also wants that analysis.
From: Nigel Wright
To: Chris Woodcock; Michael Duffy
#142
Mike,
I didnt say that, and if you continue to misquote me, then we will be speaking only through
lawyers going forward. I said that if you continue on the path you want to take, I expect that
Deloitte will conclude that your primary residence is in Kanata. I have said that to you
several times. It is based on what you have told me, as I have seen no documentation from
you.
February 20, 2013 12:51 pm
From: Christine King [Legal Assistant to Janice Payne]
To: Benjamin Perrin
Cc: Janice Payne
#143
Mr. Perrin,
Attached please find a letter addressed to you from Janice Payne with respect to our client,
Senator Michael Duffy.
[Letter dated February 20, 2013 attached] [Appendix A, Tab 14]
February 20, 2013 12:58 pm
To: David Tkachuk
Cc: Janice Payne
#144
Senator Tkachuk,
45
February 20, 2013 12:59 pm

From: Melanie Mercer
To: Michael Duffy
Subject: Sen. Tkachuck
#145
Hi Mike,
Sen. Tkachuk just called and asked that you phone him back at home. He suggested using a
land line to call him. His number is: 3063829285
To: Nigel Wright; Andrew MacDougall; Stephen Lecce, Patrick Rogers
Subject: Duffy Scenario
#146
Nigel,
We have put together the following scenario for Senator Duffy to repay the allowance. I
would like the Senators views on how the examples of his accomplishments for the
community should be populated.
Chris
Scenario for Repayment
Senator Duffy would issue a written statement to PEI media and the national press gallery on
Friday. Senator Duffy would hold a brief media availability in PEI. The Senators office will
send an advisory to media an hour before hand, to limit intervention from the Ottawa bureaus
and or Opposition mobilization. Moreover, the Senator will be staffed by the MRO to help
facilitate the availability and end it after a handful of questions.
Follow-up media calls would be answered by the Senators office coordinated by PMO.
The purpose is to put an end to the ongoing questions about his expenses. A proactive
repayment would allow Senator Duffy to say he is doing the right thing without being found
guilty of breaking the rules by Deloitte. The Senate Committee would halt the audit provided
that he acknowledges an error or wrongdoing. Questions about Duffy, Wallin and Pattersons
residency and eligibility to sit in the Senate will be resolved by the Committee next week.
The matters concerning Senator Wallin and Senator Patterson remain outstanding. Senator
Wallins expenses are complicated and are unlikely to be resolved before Parliament resumes
on Monday. On the other hand, Senator Patterson does not appear to have violated Senate
rules, but will be repaying a BC tax credit. We are in a position to resolve Senator Patterson
on Friday at the same time as Senator Duffy, leaving both residency issues for the
Committee.
Statement
Four years ago, I was given the opportunity to sit in the Senate as a voice for Prince Edward
Islanders in Ottawa. I jumped at the chance. I was born here, I was raised here, and my heart
is here. I also started my career here, and took my Island sensibilities along when I was
covering politics in Ottawa.
Being a Senator has allowed me to do a lot of good for PEI communities. When Im home on
the Island, Im often out (list announcements and accomplishments for various PEI
communities)
[Continue below]
46

To: Nigel Wright; Andrew MacDougall; Stephen Lecce, Patrick Rogers
Subject: Duffy Scenario
#147
[continued from above]

Like all Members of Parliament and Senators, my responsibilities require me to spend a
substantial part of my time in Ottawa, voting, doing committee work and representing
Islanders at every opportunity. I also spend many days and nights travelling across Canada
on Senate and public business. In addition to our residence in Cavendish, my wife and I own
a house in Ottawa.
As a representative for the province, I have always taken care to conduct my affairs in a
manner that Islanders can be proud of and to hold myself to a higher standard. I want there to
be no doubt that Im serving Islanders first, so I will be repaying in full the housing
allowance associated with my house in Ottawa.
If it is necessary to admit an error or wrongdoing I would revise the last paragraph to say:
manner that Islanders can be proud of and to hold myself to a higher standard. Because it is
my home, I had always considered Cavendish to be my primary residence. There has been an
historical lack of clarity in the rules and forms. I had thought I was doing the right thing, but
I was mistaken. The allowance associated with my house in Ottawa will be repaid, and the
allowance for the Ottawa home will no longer be claimed going forward. I want there to be
no doubt that Im serving Islanders first.
From: Christine King
To: Benjamin Perin
Cc: Janice Payne
#148
Mr. Perrin,
To: Nigel Wright
Subject: Fw: Senator Michael Duffy
#149
Privileged
I can reply and see if she wants to speak. I would just listen and then report back. Do you
agree?
From: Nigel Wright
To: Benjamin Perrin
Subject: RE: Senator Michael Duffy
#150
Yes, you should. You should get an update first. That can come from Chris W & Patrick R,
or from me if they are not available. Nigel
47

#151
From: Nigel Wright
To: Chris Woodcock; Andrew MacDougall; Stephen Lecce, Patrick Rogers; Benjamin Perrin
Subject: RE: Duffy Scenario
Adding Ben.
1. We should suggest to Mike that he would acknowledge an error and put it down to
ambiguities in the rules and forms. Never mention wrongdoing to Mike. I also believe
that Mike was doing what people told him he should do, without thinking about it too
much.
2. We have now been advised by our boss that, no, a committee will not resolve any
questions about anyones eligibility to sit in the Senate. I dont think we can say to Mike
or anyone else when the Wallin matter about expenses (not residency) will be settled.
What I have said to Mike, and others can, but I dont see a need to put in writing, is that
we believe he meets all residency requirements relating to his ability to sit as a Senator
from PEI, that only the Senate and no one else (no court, not the Committee on Internal
Economy) can make a determination on that, and that we will defend his Constitutional
residency qualification categorically and never acquiesce to the contrary suggestion. It
would be nice to resolve Sen. Patterson on Friday too but that is about expenses.
3. After the first sentence in the third paragraph of the statement, there should be a line
inserted that Mike spends dozens or scores of days and nights each year on the travelling
around Canada on Senate and public business.
4. I think that the second iteration of the final paragraph is the one to suggest to him. It is
not wrongdoing. It is: There has been an historical lack of clarity in the rules and forms.
I had thought I was doing the right thing, but I was mistaken. So I will be repaying,
etc. I think he should also say that The allowance for the Ottawa home will no longer
be claimed going forward. I have phrased that in the passive voice, so he doesnt have
to say I will no longer claim. (The way it works is that one fills out a form designating
the primary residence in the province one represents (the form does not have words
suggesting that the primary residence can be outside of that province). Once you fill out
that form and submit it, you get an allowance for the NCR home. Mike says this is a trap.
Perhaps it is. But DeBan managed not to get the allowance for his Ottawa home, which
is his true primary residence, even though he is a QC Senator.)
5. I think you need to give Mike a few Q&As. So, is Ottawa your primary residence? A: I
have a residence in PEI and one in Ottawa. The housing allowance will no longer be
claimed for the Ottawa home? Does this mean that you are not a resident of PEI and
unable to represent it in the Senate? A: Not at all. I am a resident of PEI. Also having a
home in Ottawa does not contradict that most Parliamentarians have a place in the
National Capital as well as in the province they represent. Why have you done this now
and not let Deloitte finish its work? Is there something you dont want them to discover?
A: The only thing Deloittle was looking at for me was the housing allowance I have
now said there was a mistake on that. Why did it take you so long to admit to the
mistake? A: Listen, people were suggesting that I am not a resident of PEI. I knew that
was ludicrous. It took a few days to sort out what the real issue really was. Others? This
is about making Mike feel comfortable that he will not be stepping of a ledge if he
repays.
Nigel
48

From: Nigel Wright
To: Sandy Melo
Subject: RE: Duffy
#152
I did speak with Dave, thanks. We agreed on a path forward. PMO is engaging with Duffy
this afternoon and Dave will be, or will already have, called him too.
#153
To: Nigel Wright; Andrew MacDougall; Stephen Lecce, Patrick Rogers; Benjamin Perrin
I have revised the statement to reflect your comments. I will also have a full Q&A prepared
for Mikes use.
Statement
Islanders in Ottawa. I jumped at the chance. I was born here, I was raised here, and my heart
is here. I also started my career here, and took my Island sensibilities along when I was
covering politics in Ottawa.
Being a Senator has allowed me to do a lot of good for PEI communities. When Im home on
the Island, Im often out (list announcements and accomplishments for various PEI
communities)
substantial part of my time in Ottawa, voting, doing committee work and representing
Islanders at every opportunity. I also spend many days and nights travelling across Canada
on Senate and public business. In addition to our residence in Cavendish, my wife and I own
a house in Ottawa.
manner that Islanders can be proud of and to hold myself to a higher standard. Because it is
my home, I had always considered Cavendish to be my primary residence. There has been an
historical lack of clarity in the rules and forms. I had thought I was doing the right thing, but
I was mistaken. The allowance associated with my house in Ottawa will be repaid, and the
allowance for the Ottawa home will no longer be claimed going forward. I want there to be
no doubt that Im serving Islanders first.
#154
From: Nigel Wright
To: Chris Woodcock; Andrew MacDougall; Stephen Lecce, Patrick Rogers; Benjamin Perrin
I am fine with this Chris.
I have spoken again with Sen. Duffy. Tomorrow morning I shall receive by courier redacted
copies of his diaries and other info to back up his claim to have PEI (as opposed to his
home in Cavendish) as his primary residence. Our team will have to look at that to see if
there is anything in it that we would not want his lawyer to send to the Senate steering
committee. Maybe it will persuade us to let him take his chances with Deloittes findings. If
not, then I have told him I will be back on his case about repayment. I have told him that we
have comms and issues management materials in preparation.
49

From: Michael Duffy
To: Janice Payne; Chris Rootham
Subject: Wednesday Evening
#155
Janice: 20 Feb 2013

Before we chat Thursday, an update on today.
Mary and I copied and redacted my 4 years of diaries; added a summary of my days in PEI,
and pics of the cottage under construction etc. and sent it to Nigel by Purolator. We were
having freezing rain. But barring a storm delay, he should have it Thursday morning. Nigel
called last night. I have more details below, but there are two deadlines:
1: He said he had heard that Deloitte might make a ruling on me next week, based on what
they had seen from The Senate, without hearing from us.
2: He said that the steering committee of Internal Economy was preparing to issue their own
report early next week on the issue of residency. I.e.: They would trump Deloitte by saying
that their analysis of my health card etc. showed I was in violation if the rules and I wasnt
eligible to sit as a Senator from PEI.
During the day I had several calls.
Sen. Vern White, former Ottawa Police Chief called, and said he wanted to chat. I said I was
on deadline. Too busy.
David Tkachuk called to say that if I would write a letter saying I had made an error, and
offering to re-pay, the committee would agree to pull my case from Deloitte. I told him I had
not made a final decision, but as they had sent me to Deloitte over my string objections, they
would have to wear it.
Im sure he reported this to Nigel.
Then my old personal friend Angelo Persichilli, who is expecting an appointment called,
urging the same thing. You will be all alone. Your party against you, the Libs against you,
the media against you. I said; I admire Harper, but I have to able to look myself in the mirror,
etc.
Then Nigel called tonight. I told him what I had sent. He was expansive, saying we (PMO)
had been working on lines and a scenario for me, that would cover all of my concerns,
including cash for the repayment.
He then mentioned days on PEI, and I read him the totals from my document. I said any busy
MP or Senator would be pressed to have more days in their ridings. (Ill look at your diaries
with care when they arrive. Maybe youre right. But my sense is Deloitte will find against
you, I then said; if that happens, Ill call my bank. I did NOT say I would re-pay.
Somewhere in the midst of this he said the steering committee of Internal Economy was
preparing to issue their own report on the issue of residency.
Ie: They would trumped Deloitte by saylng that their analysis if my file showed I was in
violation if the rules and I wasnt eligible to sit as a Senator from PEI.
I asked, where does this committee get the power to pronounce on these things? Sounds to
me like they are way out of their depth. No one gave them authority to make these findings
on their own. He said David Tkachuk, and Carolyn Stewart Olsen were the majority on the
steering committee and they wanted to do this.
I said nothing.
[Continued below]
50

From: Michael Duffy
To: Janice Payne; Chris Rootham
Subject: Wednesday Evening
#156
[Continued from above]

So thats the hammer. He didnt make a threat, he said he was trying to protect me from this
rogue subcommittee. But the treat seems obvious. You take the dive or this sub-committee
will throw you out on the residency issue before youve had any kind of hearing.
-He also said you had not seen the diaries, and seemed to imply that he was thus in a better
positon than you to determine whether or not I was entitled to the housing allowance.
February 20, 2013 11:13 pm
From: Janice Payne
To: Michael Duffy; Chris Rootham
Cc: Christine King
Subject: RE: Wednesday Evening
#157
Mike, I am flabbergasted by this.

Nigels lawyer who described himself as being with the PMO called me around 3 p.m. today.
At his initiative, we agreed that we were speaking without prejudice, which means neither of
us can use what we said against the other, as is usual in these discussions.
He started by saying that he understood things had become somewhat tense between you and
Nigel, that this was unfortunate, not what they wanted, they are committed to you, you have
been playing a significant role, you are a huge asset, etc. I responded in kind by added that
you were feeling abandoned and that you felt that they were changing strategies, etc. I
repeated more than once that capitulating now in advance of Deloitte could be highly
damaging and just add to the media frenzy.
He told me that there was no written analysis that Nigel or the office had done in terms of
your position. But based on the facts as they have described to Nigel, they worry that there
could be a problem with the housing allowance.
They dont have the Deloitte terms of reference and recommend I press the Senate for those.
He said that Chris Woodcock of his office and Patrick Rogers are communications
specialists, very talented, and happy to work with you to develop various strategies around
communication should you decide to pay now or later. He says that we should be ready with
a choice of strategies.
He asked if I would be prepared to listen to his views on the matter. I said sure, go ahead.
He thought we should try to assess the risk re Deloitte audit and if there is a risk it could go
sideways, we should get out in front of that risk, pay the $ as a good faith gesture, put up
with a bit of hardship but at the end of the day it would be less hardship than the public
embarrassment of an unfavourable opinion by Deloittle.
He said our notion of waiting for the audit and saying you will pay if it goes against you
wont gain you any points because that will be your legal obligation. He started to heat up his
tone a bit at this point, encouraging us to move fast.
[Continued below]
51
February 20, 2013 11:13 pm

From: Janice Payne
To: Michael Duffy; Chris Rootham
Cc: Christine King
Subject: RE: Wednesday Evening
#158

I did ask about whether they had an opinion on your qualifications to sit as a senator. He
would not tell me but he did say there was no issue as far as they are concerned. He said he
would find out what more he could say.
We ended the call. The tone was cordial.
He called back in less than 5 minutes and told me that I could tell you that it is their view that
you satisfy the constitutional requirements, that only the Senate as a whole could decide
otherwise and the party will support you fully on that issue. He would not give me this (or
anything) in writing but knows I will tell you. We both agreed to keep in touch as needed.
I think it critical that you hold all this information in confidence. At a minimum it should not
be circulated in writing to anyone.
On reviewing your points below I suggest:
1. I write to Deloitte insisting on a reply to my letter of last week, which among other
things, made it clear that we expect to be interviewed;
2. I could write to or call Benjamin and ask him to advise in specific terms what could be
done in terms of payment of fees, payment of cash, protection on media releases,
development in advance of a strategy, should you decide now rather than going through
the audit, so that you can make an informed decision. Or you could ask Nigel to give you
these specifics.
We remain utterly convinced that you are constitutionally qualified to sit as a Senator. If
action is taken, it could be legally contested. We do not agree that the subcommittee has the
power to remove you on any ground.
CHRIS, WOULD YOU PLEASE TAKE A LOOK AT THE ABOVE POINT IN THE
MORNING AND CONFIRM?
Senator Ts letter of Feb 14th makes it very clear in writing that you will have a chance to be
heard by both the relevant Senate Committee and Deloitte. I dont believe that the
subcommittee will take the action Nigel threatens.
February 21, 2013 12:08 pm

From: Janice Payne
To: Benjamin Perrin
Cc: Christine King
Subject: Further to our discussion yesterday
#159
You mentioned support developing media lines/releases for various options.

Nigel spoke to our client last night and also said he would be sending some media lines.
When I last spoke to my client this morning he didnt yet have them.
We would like to see these as soon as they are available so that we can review options with
our client.
When they are sent, please provide me with a copy.
52
February 21, 2013 12:12 pm

To: Niel Wright; Patrick Rogers; Chris Woodcock
Subject: Sen Duffy
#160
Privileged
Fyi sounds like they will consider it. Id like to share the draft products with her once they
go to the Senator if youre okay with that. Let me know.
February 21, 2013 12:17 pm
From: Nigel Wright
To: Benjamin Perrin; Patrick Rogers; Chris Woodcock; Stephen Lecce
Subject: RE: Sen Duffy
#161
Adding Stephen. I think that we should provide these to Mike, but in the context of a phone
call where the team sends them (including Q&A and statement) to Mike directly and then
walks him through them over the phone. I dont like the optics of our sending lines to his
lawyer. We could walk him through the support we would provide.
February 21, 2013 12:17 pm
From: Nigel Wright
To: Benjamin Perrin; Patrick Rogers; Chris Woodcock; Stephen Lecce
Subject: RE: Sen Duffy
#162
BTW, if he asks, I have not yet received his Purolator package.

February 21, 2013 12:20 pm
To: Nigel Wright; Patrick Rogers; Chris Woodcock; Stephen Lecce
Subject: Re: Sen Duffy
Great. I will not reply to her.
53
#163
February 21, 2013 12:45 pm

To: Benjamin Perrin; Nigel Wright; Patrick Rogers; Stephen Lecce
#164
Here is the Q&A. Patrick, Stephen and I will call Senator Duffy shortly. Nigel I had put
together several more questions, but pared it back to your core questions with some revisions
and a couple of additions.
Q1: Is Ottawa your primary residence?
A: I have a residence in PEI and one in Ottawa.
Q2: The housing allowance will no longer be claimed for the Ottawa home? Does this
mean that you are not a resident of PEI and unable to represent it in the Senate?
A: Not at all. I own a residence in PEI. I was born and raised there. And I will continue to
represent PEI in Senate. Most Parliamentarians have a place in the National Capital as well
as in the province they represent. Some stay in hotels, some rent, some own.
Q3: You seemed confident earlier this week that Deloitte would clear you. What changed
your mind?
A: I took a few days to sort out what the issue really was. I want there to be no doubt that Im
serving Islanders first. There has been an historical lack of clarity in the rules and forms. I
had thought I was doing the right thing, but I was mistaken and Im making it right.
Q4: Why have you done this now and not let Deloitte finish its work? Is there something
you dont want them to discover?
A: The only thing Deloitte was looking at for me was the housing allowance I have now
said there was a mistake on that.
Q5: Why did it take so long to admit to the mistake?
A: Listen, people were suggesting that I am not a resident of PEI. I knew that was ludicrous.
It took some time to sort out what the real issue really was.
Q6: If you live in PEI, why dont you have a health card?
A: A health card doesnt define my ability to represent PEI in the Senate.
Q7: You said you rent a place in Charlottetown, where is your apartment?
A: I stay in Charlottetown during the winter months when my residence in Cavendish is
inaccessible. Im not going to get into the details.
Q8: Will you commit to being more transparent and accountable moving forward?
A: As a representative for the province, I have always taken care to conduct my affairs in a
manner that Islanders can be proud of and to hold myself to a higher standard.
February 21, 2013 12:50 pm
From: Nigel Wright
To: Benjamin Perrin; Chris Woodcock; Patrick Rogers; Stephen Lecce
Roger.
54
#165

Cc: Janice Payne
#166
Mr. Timm,
See attached letter addressed to you from Janice Payne with respect to our client, Senator
Michael Duffy.
To: Michael Duffy
Subject: Quick Call
#167
Do you have a few minutes to go over some possible comms products on the phone?
From: Michael Duffy
To: Chris Woodcock
Subject: Re: Quick Call
#168
In a meeting with chg town airport authority. Can u send by email and I will respond a bit
later? Mike
To: Michael Duffy
#169
Would like to discuss at a high level then send you a statement and Q&A for your review, it
that works.
From: Michael Duffy
To: Chris Woodcock
#170
Ok. I am waiting. M
To: Michael Duffy
#171
Does 2pm work?

From: Michael Duffy
To: Chris Woodcock
#172
New number 902-566-7030
55

To: Michael Duffy
#173
Statement
Islanders in Ottawa. I jumped at the chance. I was born here, I was raised here, and my heart is
here. I also started my career here, and took my Island sensibilities along when I was covering
politics in Ottawa.
Being a Senator has allowed me to do a lot of good for PEI communities. When Im home on the
Island, Im often out (list announcements and accomplishments for various PEI communities)
substantial part of my time in Ottawa, voting, doing committee work and representing Islanders at
every opportunity. I also spend many days and nights travelling across Canada on Senate and
public business. In addition to our residence in Cavendish, my wife and I own a house in Ottawa.
As a representative for the province, I have always taken care to conduct my affairs in a manner
that Islanders can be proud of and to hold myself to a higher standard. Because it is my home, I
had always considered Cavendish to be my primary residence. There has been an historical lack
of clarity in the rules and forms. I had thought I was doing the right thing, but I was mistaken.
The allowance associated with my house in Ottawa will be repaid, and the allowance for the
Ottawa home will no longer be claimed going forward. I want there to be no doubt that Im
serving Islanders first.
Q&A
Q1: Is Ottawa your primary residence?
A: I have a residence in PEI and one in Ottawa.
Q2: The housing allowance will no longer be claimed for the Ottawa home? Does this mean
that you are not a resident of PEI and unable to represent it in the Senate?
A: Not at all. I own a residence in PEI. I was born and raised there. And I will continue to
represent PEI in Senate. Most Parliamentarians have a place in the National Capital as well as in
the province they represent. Some stay in hotels, some rent, some own.
Q3: You seemed confident earlier this week that Deloitte would clear you. What changed your
mind?
A: I took a few days to sort out what the issue really was. I want there to be no doubt that Im
serving Islanders first. There has been an historical lack of clarity in the rules and forms. I had
thought I was doing the right thing, but I was mistaken and Im making it right.
Q4: Why have you done this now and not let Deloitte finish its work? Is there something you
dont want them to discover?
A: The only thing Deloitte was looking at for me was the housing allowance I have now said
there was a mistake on that.
Q5: Why did it take so long to admit to the mistake?
A: Listen, people were suggesting that I am not a resident of PEI. I knew that was ludicrous. It
took some time to sort out what the real issue really was.
Q6: If you live in PEI, why dont you have a health card?
A: A health card doesnt define my ability to represent PEI in the Senate.
Q7: You said you rent a place in Charlottetown, where is your apartment?
A: I stay in Charlottetown during the winter months when my residence in Cavendish is
inaccessible. Im not going to get into the details.
Q8: Will you commit to being more transparent and accountable moving forward?
A: As a representative for the province, I have always taken care to conduct my affairs in a
manner that Islanders can be proud of and to hold myself to a higher standard.
56

To: Nigel Wright; Patrick Rogers; Stephen Lecce
Subject: Revised Duffy Statement
#174
Here is a revised statement from Duffy. He asked for language that is down-home Mike
Duffy, so Ive tried to oblige. He also asked that he be allowed to insert PEI-isms. Im
interested in your views on this before I send it to the Senator.
Revised Statement from Senator Mike Duffy
(Senator to insert pro-PEI language) Like many Prince Edward Islanders, my works takes me
across the country. As a Senator, Im required to spend a substantial part of my time working
in Ottawa. I also spend many days and nights travelling across Canada on Senate and public
business.
While my job may be in Ottawa, my heart is in PEI. When Im back home, I live at my
residence in Cavendish for three seasons. In the dead of winter, I stay in Charlottetown. My
wife and I also own a home in Ottawa.
I have an Ontario Health Card because I have health issues, and I need to see doctors in
Ottawa when Im required to be in Ottawa. This does not define my ability to represent
Prince Edward Island in the Senate.
The recent controversy surrounding my housing allowance claim has become a distraction
and I want to put it behind me. The fact is that the Senate rules and forms dealing with the
Housing Allowance arent clear. I filled out the form and thought I was doing the right thing,
but I have taken some time to review the details and I have realized that I was mistaken. I
have always conducted my affairs in a way that Prince Edward Islanders can be proud of,
and I intend to continue to hold myself to a higher standard. The allowance associated with
my house in Ottawa will be repaid, (and the allowance for the Ottawa home will no longer be
claimed going forward). I want there to be no doubt that Im serving Islanders first.
From: Nigel Wright
To: Chris Woodcock; Patrick Rogers; Stephen Lecce
Subject: Re: Revised Duffy Statement
#175
I am OK with this.
From: Nigel Wright
To: Chris Woodcock; Patrick Rogers; Stephen Lecce; Benjamin Perrin
#176
Mike is going to do this (although I dont consider that final, final until I see an email from
his lawyer summarising our conversations, which apparently has been drafted.) He is ready
to do it on Friday, but thinks that we want him to do CTV, and CTV will not have a camera
on PEI on Friday so Stephen please reach out to him to let him know that Friday without
CTV is preferable to Sunday or Monday with CTV.
Stephen, also, we should have you or Andrew reach out to any Conservative pundits who
will be on Sunday panel shows to make sure they saw the senior government sources line.
I have to weigh on Sen. Tkachuk, and I will call Sen. S-O too, to insist that Mikes may
have made a mistake will be accepted as sufficient to call of Deloitte.
57

#177
From: Stephen Lecce
To: Nigel Wright; Chris Woodcock; Patrick Rogers; Benjamin Perrin; Andrew MacDougall
Will do. Adding Andrew.
I can get a CTV camera to PEI in a few hours (from Moncton). We can likely make this work
all on Friday.
#178
From: Nigel Wright
To: Chris Woodcock; Patrick Rogers; Benjamin Perrin; Andrew MacDougall; Stephen Lecce
Hes open to that giving them a heads-up but I simply said that Stephen or Chris would
deal on all that kind of stuff because I wont get into those details.
From: Janice Payne
To: Benjamin Perrin
Cc: Christine King
Subject: Senator Duffy
#179
I understand that there are some discussions between our clients.

Assuming we can work out the communication, we will need agreement on the following
before we can proceed:
1. The Internal Economy Committee will confirm that Senator Duffy has been withdrawn
from the Deloitte review and it will assure him that his expenses are fully in order to date
and will not be the subject of any further activity or review by the Committee, the
Senate, or any other party. If any member of the Committee makes any statement, it will
ensure that such statement is consistent with the agreed media lines.
2. There will also be a written acknowledgement that Senator Duffy meets and has always
met all requirements necessary to sit as the Senator from PEI.
3. As his apparent ineligibility for the housing allowance stems from his time on the road
on behalf of the party, there will be an arrangement to keep him whole on the repayment.
His legal fees will also be reimbursed.
4. If the Senate rules or travel policy are rewritten to permit Senator Duffy to claim a
housing allowance in the future he will be free to do so at that point in time.
5. The PMO will take all reasonable efforts to ensure that members of the Conservative
caucus, if they speak on this matter, do so in a fashion that is consistent with the agreed
media lines.
I am available to discuss in the morning.
To: Nigel Wright
#180
Privileged.
This is quite the list of demands below. How would you like me to respond?
I recall on point 2 that this would come from Senator Lebreton, if at all.
58

From: Nigel Wright
#181
All of this assumes Sen. Duffy makes a statement and keeps his communications within the
bounds that have been discussed with him. Ben, subject to your views or those of others, I
think you could offer the responses below verbally by phone as that is presumably the best
way to avoid misunderstandings. Nigel
1. The Internal Economy Committee will confirm that Senator Duffy has been withdrawn
from the Deloitte review [this is what will happen because the only subject matter that
Deloitte is reviewing with respect to Sen. Duffy will have become moot, and that
understanding is a commitment I will receive from Sens. LeBreton, Tkachuk, and
Stewart-Olsen] and it will assure him that his expenses are fully in order to date and will
not be the subject of any further activity or review by the Committee, the Senate, or any
other party [I think we can say that the Steering Committee will determine that the
secondary residence issue will be closed by the act of repaying what has previously been
received and not receiving any further payments unless Sen. Duffys living arrangements
change in a way that permit him to receive the payments. I do not think it could say
anything about any other expenses as no one has ever raised an issue with respect to
them. Only the Senate Committee could make such a commitment, and they cannot
reasonably do that]. If any member of the Committee makes any statement, it will ensure
that such statement is consistent with the agreed media lines [this is precisely the
position we will take with Sen. LeBreton and the Conservative Senators on the Steering
Committee as the media lines will be accurate and we only want these Senators
providing accurate comments].
2. There will also be a written acknowledgement that Senator Duffy meets and has always
met all requirements necessary to sit as the Senator from PEI. [I have been specific with
Sen. Duffy that a senior government source will make a statement on the day of his
statement to the effect that there is no doubt he is qualified to sit as a Senator from PEI.
The PM will also give this answer is asked, as will other authorized spokespeople for the
Government. That is because it is true. There will not be a written acknowledgement.]
3. As his apparent ineligibility for the housing allowance stems from his time on the road
on behalf of the party, there will be an arrangement to keep him whole on the repayment.
His legal fees will also be reimbursed. [I do not know the amount of the legal fees and
their reasonableness, so that has to be disclosed forthwith. Without acknowledging the
accuracy of the premise of this item, the Party is open to keeping Sen. Duffy whole since
it is clear that any overpayments were innocently received. I have a call into the Party to
confirm this as I think that the Senator has a right to have it confirmed.]
4. If the Senate rules or travel policy are rewritten to permit Senator Duffy to claim a
housing allowance in the future he will be free to do so at that point in time. [The Senator
should be free to receive any future allowance or reimbursement to which he is clearly
entitled by the rules of the Senate. Where there is any possible ambiguity, he should seek
advice in advance from the relevant Senate authorities.]
5. The PMO will take all reasonable efforts to ensure that members of the Conservative
caucus, if they speak on this matter, do so in a fashion that is consistent with the agreed
media lines. [Agree, this is our view since the agreed media lines are accurate and we do
not wish people to make inaccurate statements.]
59
February 21, 2013 10:01 PM

To: Janice Payne
#182
Would you like to speak now?

February 21, 2013 10:01 PM
From: Janice Payne
To: Benjamin Perrin
#183
I cant Ben. Sorry. Happy to do so very early tomorrow. I have a 10 am commitment. Any
time before then as early as you like.
February 22, 2013 5:14 AM

To: Janice Payne
#184
I can speak at 7 am. Does that work?

From: Janice Payne
To: Benjamin Perrin
#185
Sorry Ben. I am seeing this now. Anytime now is good. 613-889-1502.

To: Janice Payne
#186
I just tried calling. Please let me know when you are free for a quick follow-up conversation.
From: Garry Timm [Deloitte]
To: Janice Payne
#187
Good Morning Ms. Payne,

Please find enclosed a letter regarding the above noted matter.
Please contact me should you have any questions or require clarification.
[Attached letter dated February 21, 2013] [Appendix A, Tab 17]
60

To: Nigel Wright; Chris Woodcock; Patrick Rogers; Stephen Lecce
#188
Privileged
Hi Nigel,
I have just spoken with Janice and conveyed all of the points below. After a little back and
forth, she was generally satisfied with the responses I think.
Point 3 requires follow-up from her and us. She will provide info on her rate and hours for
legal fees. Below you spoke of further communications with the party.
I noted this is all conditional on agreement on the statement and communications bounds
being respected by the Senator. She said they would be replying with some proposed changes
shortly.
Please let me know if you have any questions or concerns. I will forward her legal fees info
once it is received.
Regards,
Ben
#189
From: Nigel Wright
To: Benjamin Perrin; Chris Woodcock; Patrick Rogers; Stephen Lecce; David van Hemmen
Good, thanks Ben. I will try to speak with Sen. Gerstein this morning. N
February 22, 2013 11:39 AM
From: Nigel Wright
#190
I now have the go-ahead on point three, with a couple of stipulations:

I would like to understand if anyone Sen. Duffy ever intends to inform about point 3 (or, for
that matter, the entire agreement). I assume that I know the answer, but I would like it to be
explicit. For its part, the Party would not inform anyone.
Related to that, funds disbursed from the Party under point 3 would be paid to Ms Paynes
law firm, since a good portion of them are in payment of their fees.
I would like to cap legal fee reimbursement at $12,000 (I wouldnt kill it on this basis, but I
just want to do this) and we need an accounting of what Sen. Duffy owes the Senate (we do
not need the latter before his statement is rolled out).
Ben, please go back to Ms Payne on these points and ascertain where they stand on everything
else. I do want to speak to the PM before everything is considered final.
Thanks.
Nigel
61
February 22, 2013 11:50 AM

#191
Thanks for this info. Ive tried just now to reach her but no answer. Will keep trying.
February 22, 2013 11:54 AM
From: Janice Payne
To: Benjamin Perrin
#192
Hope to be shortly. I will call.

February 22, 2013 12:13 PM
From: Nigel Wright
#193
We are good to go from the PM once Ben has his confirmation from Payne.
February 22, 2013 12:15 PM
#194
She replied by email saying she is busy and will call me once she is available. Will keep you
posted.
February 22, 2013 12:19 PM
To: Janice Payne
#195
We hope to finalize things now so we can proceed. Please let me know when you are free.
February 22, 2013 12:27 PM
From: Janice Payne
To: Benjamin Perrin
#196
I am trying to get off the phone. Hang on.
62
February 22, 2013
#197
Letter [Appendix A, Tab 18]

From: Michel Patrice
To: Janice Payne
Cc: David Tkachuck
Subject: The Honourable Senator Michael Duffy, Your File No. 16138-2
I am writing to you on behalf of Senator David Tkachuk following your letter dated February
20, 2013, in which you ask for a copy of the instructions given to Deloitte with respect to
Senator Duffy.
Your request will be brought to the attention of the Audit Subcommittee at its next meeting
for consideration.
Should you have any questions, do not hesitate to contact me at 613-992-2418.
February 22, 2013 12:40 PM
From: Michael Duffy
To: Ray Novak
Subject: Checking In
#198
Ray. I am cooked. I did nothing wrong. Someone misled the pm on my time in pei and the
strategy of waiting this out was wrong. They told me to say it is oin deloittes hands etc. I did
that for a week. Now they want me to abandon that and make a voluntaru restitution. This is
nuts and and is very hard for me to swallow. I swing between the team player mode and do
anything for pmsh and it is time for me to say phack it. Let deloitte decide. If I leave it to
them I have an avenue of appeal to the courts. If I take a dive for my leader when I am
innocent the I am totally at the mercy of the media the opposition etc. Mike
February 22, 2013 12:45 PM
From: Nigel Wright
To: Ray Novak
#199
FYI scroll down a bit to see the state of play. We are ready to move when we hear back
from his lawyer.
February 22, 2013 12:50 PM
#200
Privileged
Janice and I spoke. She wants an hour or so to finalize this understanding with the Senator. I
think we will be good.
One issue: she wanted it all in writing. I explained that was not happening. We arent selling
a car or settling a lawsuit here. She seemed to get it eventually.
I will report back once we have her final confirmation.
63
February 22, 2013 12:57 PM

From: Stephen Lecce
To: Benjamin Perrin; Chris Woodcock; Patrick Rogers; Nigel Wright
Cc: Andrew MacDougall
#201
I just note that in order to get into the regional broadcasts tonight (6PM AST) we will need
to give a heads-up to media ASAP, as the time zone works against us.
It will take about 2-3 hours for CTV to get to PEI.
February 22, 2013 1:01 PM
To: Janice Payne
Subject: Urgent: Senator Duffy
#202
I understand from our communications people that for this to happen today, which is
imperative, we need the greenlight from you imminently.
To: Janice Payne
Subject: Re: Urgent: Senator Duffy
#203
My cell is 613-697-0304 if you need to reach me.

#204
From: Nigel Wright
To: Benjamin Perrin; Chris Woodcock; Patrick Rogers; Stephen Lecce; David van Hemmen
I told Mike last night not in writing. He can have my word if he wants that.
#205
From: Nigel Wright
To: Stephen Lecce; Benjamin Perrin; Chris Woodcock; Patrick Rogers; David van Hemmen
David, I will want to speak with Tkachuk and Marjory as soon as I can when this starts to
roll dont mind stepping out of CETA but not out of Wynne.
From: David van Hemmen
To: Stephen Lecce; Benjamin Perrin; Chris Woodcock; Patrick Rogers; Nigel Wright
Sure thing. Ben and Stephen, please let me know.
64
#206

From: Ray Novak
To: Michael Duffy
Subject: Re: Checking in
#207
As I think youve discussed with Nigel, we can put a com strategy around repayment that I
think will work. Best to seize the initiative and not wait for audit.
#208
From: Nigel Wright
Could the government lines (that Sen. Tkachuk has agreed to stick to) be sent to Sen.
Tkachuk now?
Also David, remind me that Sen. Duffy still has to send the letter to the Steering Cttee,
mimicking his public lines, saying ambiguity in the rules, might have made a mistake,
desires to repay, needs to know the amount. Perhaps Chris your folks could do a draft of that.
#209
From: Nigel Wright
And to Sen. LeBreton too.
#210
To: Stephen Lecce; Benjamin Perrin; Nigel Wright; Patrick Rogers; David van Hemmen
We will prep a draft of this letter. Here are the lines I will send to Senator Tkachuk:
We have committed to ensuring that all expenses are appropriate, that the rules
governing expenses are appropriate and to reporting back to the public on these
matters.
Senator Duffy has taken steps to correct an error in how the forms were filled out.
He maintains a residence in Prince Edward Island and has deep ties to the province.
The Committee considers all issues relating to Senator Duffy now resolved.
To: Janice Payne
#211
I am following up.
65

From: Janice Payne
To: Benjamin Perrin
Cc: Christine King
#212
I am calling in five minutes. Attached are revised media lines. Critical that these are okay.
Please confirm.
[Revised Media Lines attached] [Appendix A, Tab 19]
#213
To: Nigel Wright; David van Hemmen; Stephen Lecce; Andrew MacDougall; Patrick Rogers; Chris
Woodcock
Subject: Fw: Urgent: Senator Duffy
Privileged
See attached. Please confirm that their final version (attached) is okay. I expect her to call
any minute.
#214
To: Nigel Wright; David van Hemmen; Stephen Lecce; Andrew MacDougall; Patrick Rogers;
Benjamin Perrin
This line in the statement is new to me. I am unware of any plan to have the Rules
Committee study expenses.
Until the Rules Committee clarifies the regulations, the allowance for the Ottawa home will
no longer be claimed.
This has also been written into the Q&A:
Q: You have 2 houses but you will not claim a housing allowance?
A: Thats correct. I will not claim an allowance for our house in Ottawa until after the rules
have been clarified by the Senate, and it is clear that I am in compliance with whatever the
new regulations are.
Suggested fixes
Delete the whole line Until the Rules Committee clarifies the regulations, the allowance for
the Ottawa home will no longer be claimed.
Q: You have 2 houses but you will not claim a housing allowance?
A: Thats correct. I will not claim an allowance for our house in Ottawa unless the rules of
the Senate were to change, making it clear that I am in compliance with whatever the new
regulations are.
66

#215
Woodcock
Privileged
I agree and have sent this back to them. I am pressing them hard to finalize this.
#216
Woodcock
They agree to the changes below. Chris: I need the final version now reflecting those
changes.
The only final step before going is me getting our final confirmation on the full details of the
arrangement. I expect that in 10 minutes from them.
#217
Benjamin Perrin
Attached. Stephen do we still time to make the broadcasts if we do this today?
#218
From: Andrew MacDougall
To: Nigel Wright; David van Hemmen; Stephen Lecce; Chris Woodcock; Patrick Rogers; Benjamin
Perrin
We should go today.
Even if CTV cant get there
#219
From: Stephen Lecce
To: Nigel Wright; David van Hemmen; Andrew MacDougall; Chris Woodcock; Patrick Rogers;
Benjamin Perrin
OK. CTV can interview him whenever they can get to PEI or Duffy can get to Halifax and
use it at some point this weekend. FYI Duffy was planning on returning to Ottawa tonight.
Today would be CBC PEI and the Guardian. His statement would stand for the rest.
67

#220
Woodcock
Ive spoken to David: Nigel will look at the finalized understanding with his counsel as soon
as he is out of the meeting with Wynne (set to end at 3 pm).
Chris: can I get lines that would go to Lebreton, S-O and Th.?
#221
Benjamin Perrin
The following lines were sent to Lebreton S-O and Tkachuk on a confidential until further
notice basis.
Lines until the Committee meets:
governing expenses are appropriate and to report back to the public on these matters.
Senator Duffy maintains a residence in Prince Edward Island and has deep ties to the
province.
He has indicated that he will be taking steps to correct an error in how the forms
were filled out.
Once the Committee has met to consider the matter (Monday or Tuesday)
Senator Duffy has taken steps to correct an error in how the forms were filled out.
He maintains a residence in Prince Edward Island and has deep ties to the province.
The Committee considers all issues relating to Senator Duffy now resolved.
68

To: Janice Payne
Cc: Christine King
#222
Lines until the Committee meets:

- We have committed to ensuring that all expenses are appropriate, that the rules governing
expenses are appropriate and to report back to the public on these matters.
- Senator Duffy maintains a residence in Prince Edward Island and has deep ties to the
province.
- He has indicated that he will be taking steps to correct an error in how the forms were filled
out
- Once the Committee has met to consider the matter (Monday or Tuesday)
- We have committed to ensuring that all expenses are appropriate, that the rules governing
expenses are appropriate and to report back to the public on these matters.
- Senator Duffy has taken steps to correct an error in how the forms were filled out,
- He maintains a residence in Prince Edward Island and has deep ties to the province
- The Committee considers all issues relating to Senator Duffy now resolved.
From: Nigel Wright
To: Benjamin Perrin; David van Hemmen
#223
OK to share these lines with her. Important to acknowledge that Duff will say there might
have been an error. Regarding qualification, there is not and never has been any doubt about
the fact that Sen. Duffy is qualified to represent PEI in the Senate.
#224
To: Chris Woodcock; Stephen Lecce; Andrew MacDougall; Nigel Wright; David van Hemmen;
Patrick Rogers
Privileged
They are good to go now on everything IF these changes are made to the lines from Sens
Lebreton, S-O, and Th:
- He has indicated that he will be taking steps to correct *any possible error* in how the
forms were filled out.
Then after committee:
- Senator Duffy has taken steps to correct *any possible error* in how the forms were
filled out.
If this is okay, then we are good to go to launch the Senator Duffy communications now
using the final version (attached).
Please advise ASAP.
69

#225
From: Nigel Wright
To: Benjamin Perrin; Chris Woodcock; Stephen Lecce; Andrew MacDougall; David van Hemmen;
Patrick Rogers
We are OK with this, and we will bring the Senators onside (anyone disagree based on what
they have heard?). We should GO.
To: Marjory LeBreton; Carolyn Stewart-Olson; David Tkachuk
Subject: Duffy
#226
Hello Senators,
Below are updated lines on Senator Duffy. Any public comments should reflect these lines
precisely. I will provide this group with a heads-up shortly before this becomes public. I will
also send these lines in French.
Thank You,
]
Today
- We have committed to ensuring that all expenses are appropriate, that the rules
- Senator Duffy maintains a residence in Prince Edward Island and has deep ties to the
province.
- He has indicated that he will be taking steps to correct an error in how the forms were
filled out
Once the Committee has met
- We have committed to ensuring that all expenses are appropriate, that the rules
- Senator Duffy has taken steps to correct an error in how the forms were filled out,
- He maintains a residence in Prince Edward Island and has deep ties to the province
- The Committee considers all issues relating to Senator Duffy now resolved.
70

To: Michael Duffy
Cc: Stephen Lecce
Subject: Media Prep
#227
Hi Senator,
We are available to do some Q&A prep before you speak to media today. Can we hold a
short phone call?
From: Michael Duffy
To: Chris Woodcock
Subject: Re: Media Prep
#228
613-371-7400
To: Michael Duffy
Subject: Re: Media Prep
#229
Here is the statement agreed to:

22 Feb 2012
Statement by the Hon. Mike Duffy, Senator, Cavendish PEI
Islanders in Ottawa. I jumped at the chance. I was born here, I was raised here, I own a
house here, I pay property taxes here, and most important, my heart is here.
I also started my career here, and took my Island sensibilities along when I was covering
politics in Ottawa.
Being a Senator has allowed me to do a lot of good for PEI communities. And there is a lot
more to do be done.
Recently questions have been raised about my eligibility for the housing allowance provided
to MPs and Senators.
The Senate rules on housing allowances arent clear, and the forms are confusing. I filled out
the Senate forms in good faith and believed I was in compliance with the rules.
Now it turns out I may have been mistaken.
Rather than let this issue drag on, my wife and I have decided that the allowance associated
with my house in Ottawa will be repaid.
I want there to be no doubt that Im serving Islanders first.
71

From: Michael Duffy
To: Ray Novak
Subject: Re: Checking in
#230
Ray. I cant admit wrong doing. The Senate has to meet me half way. Mike
#231
To: Benjamin Perrin; Stephen Lecce; Andrew MacDougall; Patrick Rogers; Nigel Wright; Ray
Novak
Subject: Duffy Transcript
Breaking News Summary
Date / Date : February 22, 2013
Time / Heure : 16h40
Network / Chane : CBC-NN
Andrew: A CBC news exclusive, mike duffy says hell voluntary pay back expenses related
to his job as a Senator. The Senator showed up at CBC television studies in Charlottetown
just moments ago in a live interview where he said that he was, in fact, going to pay all of
this back. Hes been investigated by a Senate committee, you will remember for housing
expenses, along with a number of other along with a lot of other Senators, all centred on
where he claims his residence to be. In that interview on CBC in Charlottetown he now
admits that he may not live in the province 183 days a year and he says hes happy to pay
double taxes because he doesnt spend enough time in the province. Heres a portion of that
interview
Interview: Everywhere I go people are talking, well, where do you live, whats that all about,
its become a major distraction so my wife and I discussed it and we decided that in order to
turn the page and to put all of this behind us we are going to voluntarily pay back my living
expenses related to the house we have in Ottawa.
Reporter: the $42,000 approximately?
Interview: Whatever it is. The accountants, you know Were going to pay it back and until
the rules are clear and theyre not clear now, the forms are not clear, and I hope that the
Senate will re-do the forms to make them clearer, I will not claim a housing allowance.
Reporter: Is that an admission that you dont believe that youre a permanent resident of
Prince Edward Island?
Interview: No, it has nothing to do with residency in p.E.I., Im an island resident and I am
entitled to be a Senator, Ive met all of those requirements and the one is really of
accounting, how much time are you here, how much time are you there. The form that you
fill in once a year on this matter is vague and I may have made a mistake in filling in that
form. And rather than go through months and months and months of an audit, weve got
important work to do so my wife and I talked last night and I said, lets just get this off the
plate.
Reporter: What mistake might you have made on this form?
[Continued below]
72

#232
To: Benjamin Perrin; Stephen Lecce; Andrew MacDougall; Patrick Rogers; Nigel Wright; Ray
Novak
Subject: Duffy Transcript
Interview: Well, I wish I had a copy of the form here to show you. It asks for your primary
address in the province in which you reside and I put cavendish and it asks for your second
residence and I put kanata. The argument among the accountants is that actually I spend
more time in kanata than I do in cavendish and, therefore, my primary residence should
really be Ottawa, and not cavendish. But the form says the primary residence in the province
you represent.
Reporter: Right.
Interview: So there is no space to say well, and there is no formula, and there is no rule that
says you have to spend so many days.
Andrew: Thats Senator mike duffy saying hell pay back expense money, he was speaking
to the CBC in Charlottetown.
To: Michael Duffy
#233
Senator just want you to know that we have your back on the residency file. We will
defend to the hilt.
#234
From: Stephen Lecce
To: Chris Woodcock; Benjamin Perrin; Andrew MacDougall; Patrick Rogers; Nigel Wright; Ray
Novak
Subject: Re: Duffy Transcript
Mike finished CBC PEI, it will likely lead the 6pm broadcast.
He is doing CTV Atlantic at 5:30pm (ET) will be a live double ender.
We debriefed with the Senator after CBC.
#235
From: Stephen Lecce
To: Chris Woodcock; Benjamin Perrin; Andrew MacDougall; Patrick Rogers; Nigel Wright; Ray
Novak
I should add that Mike does not want to do The Guardian. He gave it some thought and does
not believe that he will get a decent hit out of the one (semi-reasonable) reporter in the paper.
I am comfortable with him proceeding with CBC and CTY. Print will quote from his
statement and network interviews.
73

#236
From: Nigel Wright
To: Chris Woodcock; Benjamin Perrin; Andrew MacDougall; Patrick Rogers; Stephen Lecce; Ray
Novak
Agree. The semi-reasonable Guardian columnist was the one who staked out the washroom
at the airport.
#237
To: Nigel Wright; Chris Woodcock; Benjamin Perrin; Patrick Rogers; Stephen Lecce; Ray Novak
When is the paper going out?
#238
From: Stephen Lecce
To: Nigel Wright; Chris Woodcock; Benjamin Perrin; Patrick Rogers; Andrew MacDougall; Ray
Novak
Duffy is live on CTV NN.
#239
From: Nigel Wright
To: Stephen Lecce; Chris Woodcock; Benjamin Perrin; Patrick Rogers; Stephen Lecce; Ray Novak;
Andrew MacDougall; David van Hemmen
I dont think I owe this money.
74

#240
To: Stephen Lecce; Nigel Wright; Benjamin Perrin; Patrick Rogers; Stephen Lecce; Ray Novak;
Here is a draft letter to the Committee from Senator Duffy.
Senator David Tkachuk,
Chair of the Standing Committee on Internal Economy, Budgets and Administration
February 22, 2013
Dear Chairman,
Recently questions have been raised about my eligibility for the secondary housing
allowance.
I filled out the Senate forms in good faith and believed I was in compliance with the rules.
After reviewing all aspects of this matter, it turns out I may have been mistaken. To ensure
that there can be no doubt regarding this matter it is my intent to repay the housing allowance
that I have collected to date.
At this time, I ask the Steering Committee to provide me forthwith with the amount that must
be repaid in order to settle this matter in full.
Chairman, I believe that the Senate rules and forms on housing allowances are ambiguous. I
want to emphasize that it was always my intent to fully comply with the rules.
Sincerely,
Senator Mike Duffy
#241
From: Nigel Wright
Good. Maybe just say provide me *forthwith* with the amount that must be repaid. And
please say Steering Committee, or whatever it is (Patrick?). I would like to have this
resolved at that level (three Senators of which only one is Liberal) because it can be done
more quickly and cleanly.
#242
From: Nigel Wright
I appreciate the work this team did on this. One down, two to go (and one out).
75

#243
Nigel Wright; David van Hemmen
Yay this is fun.
Duffy just told Tom Clark that he (duffy) is under strict instruction from the Centre to not
talk to Global.
Helpful.
#244
From: Nigel Wright
Sweet.
#245
From: Nigel Wright
To: Stephen Lecce
Cc: Andrew MacDougall; Chris Woodcock; Patrick Rogers; Ray Novak; David van Hemmen;
Benjamin Perrin
Subject: Fw:I made a mistake claiming housing allowance, says embattled senator Duffy (Updated)
Where are the senior government sources on his qualification to sit?
76

To: Michael Duffy
Subject: Draft letter
#246
Hi Senator,
Below is a draft letter to send to the Committee.
Senator David Tkachuk
Chair of the Standing Senate Committee on Internal Economy, Budgets and Administration
February 22, 2013
Dear Chairman,
allowance.
Chairman, I believe that the Senate rules and forms on housing allowance are ambiguous. I
Sincerely,
Senator Mike Duffy
From: Michael Duffy
To: David Tkachuk; Carolyn Stewart-Olsen
Subject: Hard copy will be faxed Monday. Letter to sen tkachuk
#247
Senator David Tkachuk

Chair of the Standing Senate Committee on Internal Economy, Budgets and Administration
February 22, 2013
Dear Sir;
allowance.
Chairman, I believe that the Senate rules and forms on housing allowance are ambiguous. I
Sincerely,
Hon. Mike Duffy
77

To: Nigel Wright
Subject: Fw: Hard copy will be faxed Monday. Letter to sen tkachuk
#248
Fyi
From: Nigel Wright
To: Chris Woodcock
Subject: Re: Hard copy will be faxed Monday. Letter to sen tkachuk
thx
78
#249

From: Michael Duffy
To: Michael Duffy
Subject: Sen. Mike Duffys repayment tab could approach $90,000
#250
[Article: February 25, 2013, Sen. Mike Duffys repayment tab could approach $90,000 Mike
Duffy could be on the hook for much more than $42,000 if he mistakenly claimed living
expenses before November 2010, by Bruce Campion-Smith, Toronto Star] [Appendix A,
Tab 20]
From: Michael Duffy
To: Michael Duffy
Subject: Mike Duffys housing allowance sideshow deconstructed
#251
[Article: February 25, 2013, Mike Duffys house allowance sideshow deconstructed 80
days to a non-apology, by Tim Harper, Toronto Star] [Appendix A, Tab 21]
February 26, 2013 11:28 AM

To: Nigel Wright; Chris Woodcock; Patrick Rogers
Subject: Duffy
#252
Senator Tkachuk just called. He received an email from the Clerk, Gary OBrien,
apologizing and stating that Senator Duffy also charged meals (per diems) and taht the actual
amount owed will be in the $80 K range. He apologized for misleading us and has spoken to
Chris M as well. Unbelievable.
February 26, 2013 12:52 AM
From: Nigel Wright
To: David van Hemmen; Chris Woodcock; Patrick Rogers
Subject: Re: Duffy
#253
Marjory told me. I am beyond furious. This will all be repaid.

From: Michael Duffy
To: David Tkachuk
Subject: News?
#254
U mentioned I would get an email tonight. Any idea when? Tks. Mike
79
February 27, 2013 10:57 AM

From: Lucie Lavoie
To: Michael Duffy
Subject: Secondary Housing Allowance - Repayment
#255
Senator,
Please find attached the response letter from Senator David Tkachuk, Chair of the Internal
Economy Committee regarding your secondary housing allowance repayment.
The original letter will be sent to you by messenger.
February 27, 2013 11:30 AM
From: Gary Timm [Deloitte]
To: Janice Payne
#256
Good morning Ms. Payne,

I am writing as follow up to our communication to determine whether Senator Duffy will be
able to provide the documentation we have requested, and if so, what would be the expected
timeframe for the production of the documentation?
February 27, 2013 11:35 AM
From: Janice Payne
To: Benjamin Perrin
Cc: Christine King
#257
Good morning Benjamin,

I am attaching a letter that my client has just received from Senator Tkachuk. Please advise
re next steps.
It is our view that Senator Duffy needs confirmation from Senator Tkachuk on behalf of the
Internal Economy Committee that payment of this amount will fully resolve any concern
about his expenses to date and that he will be withdrawn from the Deloitte audit. He needs
this assurance prior to payment.
Coincidentally I have just had an email from Mr. Timm of Deloitte asking when I will be
back to him about when Mr. Duffy will be providing a list of material that they have
requested.
I am tied up between 12 and 2 but otherwise reachable today.
February 27, 2013 11:35 AM
Subject: Letter to Duffy
#258
Has been prepared and in front of us for review. Simply a total to be replayed. App $90
thousand.
Also We (steering) are meeting with Marj and Cowan at 12:15today. Re plans for Tkachuk
Statement in Senate in house residency review results on Thursday (if it is ready). Will
send a final for your review when we have it. I have asked that all recommendations be
reviewed with possible outcomes as the focus before going public.
80
February 27, 2013 11:36 AM

From: Nigel Wright
To: Chris Woodcock; Carolyn Stewart-Olsen
Subject: Re: Letter to Duffy
#259
Thank you Senator.

February 27, 2013 11:47 AM
To: Janice Payne
Cc: Christine King
#260
Thanks, Janice. I will review and get back to you.

February 27, 2013 11:47 AM
To: Nigel Wright
#261
How would you like me to respond?
From: Nigel Wright
To: Benjamin Perrin
#262
Well, there are really two parts to the answer. The first is that your exchange with Janice last
week settled the point that his reimbursement of expenses related to claims that Kanata was
not his primary residence would settle issues to date relating to his claims that Kanata was
not his primary residence. We were unable to offer any assurances about any other past
expenses. I think that we should be able to maintain this rather straightforward confirmation.
As for it coming from Sen. Tkachuk, or the Committee, which is the second point, I believe
that they will be receiving a draft letter from Deloitte very soon regarding Mike. It is my
understanding that the letter will take the position that Deloittes examination of those
matters were rendered moot by Sen. Duffys commitment to repay the related expenses. If
the letter comes quite soon, then perhaps Sen. Duffy would wait to see it before submitting
his cheque. I think he would be well-advised to make his repayment fairly promptly, but he
could seek to ascertain through Chris or Patrick when the Deloitte letter regarding him is
expected.
81

From: Janice Payne
To: Benjamin Perrin
Cc: Christine King
#263
Are you able to update me on my message below?

Senator Duffy has been led to believe that the Committee on Internal Economy is expected to
bring down a report on the residency requirements for Senators tomorrow. If so, this strikes
us as the ideal time to address bullet #2 re no doubt about the fact that Senator Duffy meets
all constitutional requirements to sit as PEI senator.
I look forward to hearing from you shortly.
From: Janice Payne
#264
I hope to able to reply by the end of this week.

#265
See below. Patrick can you advise?

From: Nigel Wright
To: Benjamin Perrin; Chris Woodcock; Patrick Rogers
#266
The PM was definitive in QP today on qualification.

To: Benjamin Perrin; Nigel Wright; Patrick Rogers
#267
Ive reached out to Tkachuk for an update but havent heard back yet. Here is the quote:
Rt. Hon. Stephen Harper: Mr. Speaker, all Senators conform to the residency requirement,
thats the basis on which they are appointed to the Senate. And those requirements have been
clear for 150 years. We recognized, Mr. Speaker, there have to be reforms to the Senate,
including limiting Senators mandates and encouraging an elected Senate. Unfortunately, the
NDP consistently oppose reforming the Senate and oppose an elected Senate so that it hopes
in the future to appoint its own Senators. I would encourage the NDP to join with us and
allow the bill to pass so we can have an elected Senate. (Applause) (voice of translator)
82

From: Janice Payne
To: Benjamin Perrin
Cc: Christine King
Subject: Re: QP Closed Captioning Transcript 2013-02-27
#268
Thank you for this. When can I expect a response on the other outstanding matters noted in
my email earlier today?
To: David Tkachuk
Cc: Sandy Melo; Christopher Montomgery
Subject: Senate INTERNAL audit
#269
Hi David. The sooner we report on the Internal Audit the better. The CTV news item (2nd on
the lineup) and other fishing expeditions by the media are not going to stop until we put an
end to this story. We are feeding the narrative another Senator runs away from answering
questions and they show a breathless Patterson trying to explain that he is providing the
required documents etc etc to Internal Economy and then cut back to the night before
showing Pamela running away from media questions. Interesting that they know everything
about Patterson but nothing about the Liberal, even suggesting by the sketch that it was a
woman Senator. When the internal audit is tabled in the Senate, the narrative is going to have
to separate it from the external audits be conducted by DT. The media dont seem to be able
to separate the two.
On the external audit of MD, just to be clear there was no suggestion that we wanted the
audit of MD continued to its conclusion. Somehow or other, that is what Nigel was told.
What is there to audit? The monies they were contracted to look into are being repaid. What
is clear however, is that it is DT who will have to advise its client, the Senate, of the process
to be followed in view of the repayment by MD.
I know this is a difficult issue because we are dealing with moving targets.
Se you at Caucus. thanks David, Marjory
#270
To: Nigel Wright; Patrick Rogers; Ray Novak; Benjamin Perrin
Subject: Revised Audit Subcommittee report Primary and Secondary Recommendations3.docx
I just received this. The second paragraph is clearly problematic.
The PM mentioned to me that this report should say that all Senators are qualified to sit in
the Senate on the basis of owning a residence.
At the very least I think the first paragraph should say This report deals with residency for
the purpose of eligibility to claim certain expenses. This matter in no way impacts senators
eligibility to represent the region or province they represent in the Senate.
I will have more comments, but wanted to share with this group.
CW
83

To: Janice Payne
#271
We are looking into it.

#272
Subject: RE: Revised Audit Subcommittee report Primary and Secondary Recommendations3.docx
I have rewritten the report extensively in the attached version. I did not change the
Committees recommendations. CS-O informs me this not final.
To: Janice Payne
#273
Privileged
Can you clarify what you are precisely looking for from us at this time? I understand that the
process is underway.
From: Janice Payne
To: Benjamin Perrin
#274
Essentially we need confirmation expenses are in order, withdrawal from Deloitte and the $
arrangements.
From: Janice Payne
To: Benjamin Perrin
#275
Can we talk in the morning?

#276
From: Nigel Wright
To: Chris Woodcock; Patrick Rogers; Ray Novak; Benjamin Perrin
I have added a number of changes, including a sentence that they might gag on, but which
satisfies what the PM has asked for. Am I to understand that Sen. Wallin is the one referred
to a Deloitte audit and that Sens. Harb and Duffy are the ones referred to a special
subcommittee? If so, what the heck? I thought that there would be a report that Duffy has
closed the question with respect to his primary residence by committing to reimburse the
expenses that brought him within Internal Economys jurisdiction?
84

#277
From: Nigel Wright
Sure, but does Mike now go to some new special subcommittee? Why doesnt this one just
settle him? Also, I didnt try to fix the references to different subcommittees in this report
but a total of three SUBcommittees are mentioned.
Subject: Fw: QP Closed Captioning Transcript 2013-02-27
#278
Privileged.
See below.
#279
I believe Mike stays with Deloitte until Deloitte determines that this issue was rendered moot
by his decision to repay. I am still trying to reach Tkachuk on this question.
I noted the various subcommittees. I dont know which committee is which and intended to
ask CS-O to sort that out. The audit subcommittee appears midway through the original
draft with no introduction.
From: Nigel Wright
#280
Ben, I do find this frustrating. There is a letter from the Subcommittee stating precisely what
expenses are owed relating to the primary residence claim. Once those are paid, the
Subcommittees can scarcely say that it got its amount wrong and needs more. Does Janice
truly understand that if Mike has improperly charged for travel on Senate business when no
Senate business actually took place that we cannot now say to him that those expenses are in
order?
Withdrawal of Deloitte is as we noted earlier I agree that the Subcommittee has to do its
work on that. Chris and Patrick are following the status of that. By the $ arrangements, I
will arrange for the amount to be wired to Janice Payne in trust. Presumably Mike knows or
can find out how to remit the proper amount to the Senate?
#281
From: Nigel Wright
OK, well we cannot have Duffy referred to a brand new subcommittee.
85

#282
The subcommittee met tonight. Apparently the Clerk and a staffer who wrote the initial audit
succeeded in forcing the committee (on which we have a majority) to decide that the report
to be issued tomorrow is just a draft but that the audit will continue. I told CS-O this is out of
the question.
Apparently the clerk and staffer threatened legal action if the full original audit/report was
not released. Our members felt the staffer would leak the report.
They are meeting again at 8am. Calling Tkachuk now.
#282b
From: Nigel Wright
To: Chris Woodcock; Patrick Rogers;
FHS
#283
Talked to Tkachuk. He is meeting Deloitte tomorrow.
This was indeed a raucous meeting.
He initially described the report we saw as an interim report. He didnt object to any of our
changes. He says the ongoing audit would be followup to the recommendations in the report
he wants to table tomorrow. This work would include rule changes and procedures, but
would not include additional digging into senators.
I objected to the word interim and said they need to position this as the Committees (only)
report on senators residency for expense purposes. They need to close the book on
individual senators (with the exception of the external audits as already understood). The
committee will followup on the recommendations, but this report cant be step one of many.
He has committed to this and to showing me any changes they want to make to the report
before it is adopted.
I believe the dispute tonight involved the Senate Administration arguing that LeBreton and
Cowan asked for an audit and that the report cant be called a full audit. I think we need
more detail on exactly what kind of additional work they are planning.
I am at wits end with the drama and agendas at play in the chamber of sober second thought.
#284
From: Nigel Wright
To: Chris Woodcock; Patrick Rogers;
Thank you Chris.
86

#285
Janice and I spoke. She seemed satisfied and will send information for wiring the funds.
Patrick/Rogers: she will follow-up with me later today on status re: the Deloitte audit being
moot. Would that letter come from Deloitte or Sen. T? Obviously, the preference would be
for such a letter to be obtained prior to payment, but if that will happen only after payment,
we need to know. At any rate, that was a key point in the understanding we have with
Senator Duffy.
From: Nigel Wright
#286
I foresee the Deloitte statement being made in the report it provides to the Senate
subcommittee and then, on that basis, Sen. Tkachuk on behalf of the Subcommittee would
inform Sen. Duffy. That said, we are not in total control of how that Subcommittee does its
work, so we should not over-commit on modalities at this stage. As I said before in these
email exchanges, if I were Sen. Duffy I would not release my cheque until I had seen
something from the Subcommittee on that.
87
MARCH 2013
March 1, 2013 6:34 AM
To: Nigel Wright
Subject: Re Senate Report
#287
Hi Nigel, just a quick note to say that I am always ready to do exactly what is asked but it
would have been a great help to know in advance what the strategy was. I can only do so
much without background. I think I could have stick handled it better with that knowledge.
Prob could have avoided yesterdays fervor. Some personalities take a bit of management.
Carolyn
March 1, 2013 6:42 AM
From: Nigel Wright
Subject: Re: Re Senate Report
#288
Please stay close to Chris and Patrick, Carolyn.

As for Wednesday night and Thursday, we got a draft report, we asked for necessary
changes. You should have been part of those conversations.
As for strategy, I am extremely frustrated that we seem to be unable to get either the
subcommittee or Deloitte to the point where it is agreed that the Deloitte examination of
Duffys secondary residence claim is completed by the combination of (i) Deloitte
determining the amount of expenses incurred by reason of the claim of secondary residence,
and (ii) Mike agreeing to repay that amount. Once we know that repayment will permit the
subcommittee and Deloitte to state that that matter is resolved, then the repayment will
follow forthwith. Somehow, despite agreement to this in advance from you, Marjory, and
David, no one on the Senate side is delivering. Chris and Patrick are our point people on this,
please stay close to them and help make this happen.
Nigel
March 1, 2013 6:43 AM
From: Nigel Wright
To: Chris Woodcock; Patrick Rogers
Subject: Fw: Re Senate Report
#289
FYI
88
March 1, 2013 7:17 AM

To: Nigel Wright
#290
Confidentially both Marj and David are telling each other the audit will not be pulled. I
believe I can work with Dave but he does work Marj up. I am not certain if it is a feeling that
they are independent or just not used to working together. I think the only way to do this is to
tell Deloitte that we are satisfied with the repayment and end the audit. The now partisan
nature of the committee is a problem as is the Clerk who seems to have his own agenda.
Mind you it is a good agenda. He wants to clean up the place. In fairness Chris did talk to me
about revisions but said he was talking to Dave so I left it. Checked with Dave later to see if
they had spoken and was he ok with revisions and he said yes. I dont envy you your job. As
I said though, if I had know from the start where we needed to finish it prob could have been
managed.
March 1, 2013 7:21 AM
From: Nigel Wright
#291
Thanks Carolyn. I agree that the auditor (its not really an audit) should report. But the report
can be if Kanata were a primary residence, here is how much would be owed. It shouldnt
conclude that Kanata is the primary residence, and it doesnt need to conclude that because
Mike has committed to repay the money as if that were the case. I could use your help
getting them to understand that and making it happen. N
March 1, 2013 7:21 AM
From: Nigel Wright
#292
FYI. BTW, I will also be asking Irving Gerstein to help get this done.
March 1, 2013 7:25 AM
#293
Understood thank you.
89
March 1, 2013 12:40 PM

From: Janice Payne
To: Benjamin Perrin
Cc: Christine King
#294
Please find attached the wire instructions you need.

Ben, I really must have an update today as to how our client will be provided with the
confirmation required by the first sentence in bullet #1 in the settlement we reached last
week which was, to remind you:
1. Senate representatives M. Lebreton, David Tkachuk and Stewart Olsen will confirm that
Senator Duffy has been withdrawn from the Deloitte review and will assure him that his
expenses are fully in order to date and will not be the subject of any further activity or
review, at their initiative or at the initiative of the Internal Economy Committee, by any
other party. If any member of the Committee makes any statement, it will ensure that
such statement is consistent with the agreed media lines.
I would also draw your attention to the last item in the attached agreed to media lines (your
email at 3:07 Friday last) that speaks to this issue and which has not yet been addressed.
As you know Deloitte is pressing and needs to be told that Senator Duffy is no longer part of
their review.
Thank You.
March 1, 2013 12:46 PM
To: Nigel Wright; Ray Novak; Patrick Rogers; Chris Woodcock
#295
Privileged
See below. Do we have an update for her on the Deloitte audit?
March 1, 2013 1:10 PM
From: Nigel Wright
To: Benjamin Perrin; Ray Novak; Patrick Rogers; Chris Woodcock
#296
Its not your fault Ben, but I am getting frustrated by this, particularly because it is not my
role in this office to be micromanaging files.
1. No we do not have an update for her on the Deloitte audit. I am presuming that you
verbally led her to understand that this is being worked on. Chris and Patrick and I are
trying to make this happen, but it is not easy. Today I asked Sen. Gerstein to actually
work through senior contacts at Deloitte and with Sen. LeBreton. I want her to
understand, through verbal conversation (because I am frustrated that she continues to
quote a paragraph that you will have told her at the time is not the deal we are not
making any representation that expenses writ large are fully in order) that the outcome
we are pushing for is for Deloitte to report publicly that IF Kanata were the primary
residence then the amount owing would be the $90 thousand figure and that since Sen.
Duffy has committed to repay this amount then Deloittes work in determining primary
residence is no longer needed.
[Continued below]
90
March 1, 2013 1:10 PM

From: Nigel Wright
#297

1. This approach has not changed, but I do not know whether you passed it along to her. If
they have an expectation in excess of this, then they should set it aside. The nub of what
I said to Mike is that his expenses would have to be repaid, so his choice was between
having that plus a finding that they were inappropriate or that without such a finding.
This is what we are working towards. Despite pre-clearing that with the relevant
Senators, I am no longer 100% sure we can deliver, but if we cant then we and Mike
have a bigger problem.
2. The use of the media line about issues having been address depends on the resolution to
#1.
3. As to her timing, she can set whatever deadlines she wants, but none has been agreed to
by us. Sen. Duffy would make this easier if he did not have outburst in Senate caucus
that make Senators oppose anything that helps him save face for expense claims that they
see as inappropriate and as putting their own reputations in harms way. We are working
on this matter. We are doing so with more dispatch then Sen. Duffy showed in bringing
this to a resolution. I do not gather from the tone of her email that she understands any of
this, and it might help if she did.
March 1, 2013 1:36 PM
#298
Privileged
I share your frustrations here, Nigel. Happy to discuss if you like.
My only communication with her on this specific issue this week has been that I have
nothing to report.
This is the first that I have heard on this level of specificity on this point, however: the
outcome we are pushing for is for Deloitte to report publicly that IF Kanata were the primary
residence then the amount owing would be the $90 thousand figure and that since Sen. Duffy
has committed to repay this amount then Deloittes work in determining primary residence is
no longer needed. It will come as news to her and I will try to share it as the implementation
of our understanding.
She is seeking outcomes that she wants. I have repeatedly and clearly made the point about
scope being limited to this specific residency issue only.
I will speak with her per the points below. I assume you would also like me, as you
previously indicated, to suggest they not remit payment until the they get an assurance that it
would render the audit moot?
However, I think it is fair between us to say that we had expected this aspect to have been
resolved already. I understand significant effort has already been expended in that regard.
Tuesday was the initial target as I recall. I get why that hasnt occurred so will have to
manage expectations with her also.
91
March 1, 2013 1:39 PM

From: Nigel Wright
#299
I dont care about her expectations. From what I hear her client is making this more difficult.
March 1, 2013 2:12 PM
#300
Done.
I have spoken with Janice and conveyed the information below to her (i.e. those aspects that
you wanted conveyed, not the insider information).
I reiterated it is not acceptable for her to keep making statements that are broader than what
we has as our understanding. She relented on that point.
For now, she has been placated, but I suspect will want more later. I told her we have no
timeline for a reply. I told her once we have anything further we see fit to report back to her,
we would do it.
If she calls again I will say no update, until I hear otherwise.
March 1, 2013 2:18 PM
From: Nigel Wright
#301
Thank you very much Ben.
March 3, 2013 9:13 AM

From: Arthur Hamilton [Cassesls Brock]
To: Janice Payne
Subject: Senator Duffy [IWOV-Legal.FID1685658]
#302
Good morning Ms. Payne:

I am legal counsel for the Conservative Party. Ive been asked to contact you regarding
Senator Duffys current dispute re expenses in the Senate.
I am in Ottawa on Monday for a series of meetings. Would there be a convenient time when
we could meet?
Best regards,
92
March 5, 2013 8:43 AM

From: Gary Timm
To: Janice Payne
Cc: Christine King
Subject: FW: Senator Michael Duffy
#303
Good morning Ms. Payne,

I am following up on the communication below, to determine whether the information
requested will be provided and if so, the timeline for the production of the information.
March 5, 2013 8:45 AM
From: Janice Payne
To: Benjamin Perrin; Arthur Hamilton
Cc: Christine King
#304
I need to replyany suggestions?

March 5, 2013 2:34 PM
From: Janice Payne
Cc: Christine King
Subject: Senator Duffy request for input please
#305
Senator Tkachuk took the initiative to speak with Senator Duffy today and suggested to him
that I write to Deloitte (G Timm) and state the following
As you are no doubt aware, Senator Duffy has decided to resolve this matter by repaying the
housing allowance paid to him since his appointment. He does so not because he believes he
improperly claimed the allowance but because the rules are not clear and he prefers to make
the repayment rather than continue to suffer the considerable distraction that this matter has
caused him and his family.
We are making arrangements to provide that payment shortly.
Please confirm that he will be withdrawn from the review you have been asked to undertake
as soon as the repayment has been made.
Please also advise whether it is appropriate to send the amount to be repaid to your attention
for delivery to the Senate or whether your clients prefer some other arrangement for
payment.
Ben and Arthur: Please confirm today that you have no difficulty with this approach. If some
other approach or course of action is under consideration, please update me.
March 5, 2013 2:42 PM
To: Nigel Wright; Ray Novak; Chris Woodcock; Patrick Rogers
Subject: Fw: Senator Duffy request for input please
FYI see below. I did not reply to her earlier email.
93
#306
March 5, 2013 2:51 PM

From: Nigel Wright
To: Benjamin Perrin; Ray Novak; Chris Woodcock; Patrick Rogers
Subject: RE: Senator Duffy request for input please
#307
Patrick,
I would like this checked with Irving. I am happy to do so unless you have an outstanding
need to have a further conversation with him. I would support taking the approach below IF I
can be satisfied that Deloitte will accept the proposal. I do not trust that Sen. Tkachuk has
ascertained that with Deloitte before making the suggestion to Sen. Duffy (although that
might be the case, I just dont know).
If we take this route, I would phrase the latter part somewhat differently, to the effect that
since the scope of Deloittes review in respect of Sen. Duffy was limited to his claim of
expenses relating to the characterisation of his Kanata address as a secondary residence, and
since Sen. Duffy has decided to repay any expenses related to such characterisation for the
reasons noted in the earlier part of the letter, then purpose of Deloittes review has been
satisfied. Accordingly, Ms Payne would be seeking confirmation that Deloitte will so report
to the subcommittee. I am reluctant to have her ask Deloitte to specify the amount of
expenses owing because that would give Deloitte an excuse to ask for documents from Sen.
Duffy again. He has a letter from the subcommittee, and if he wants another one, it should
come from the subcommittee.
Nigel
March 5, 2013 3:23 PM
To: Benjamin Perrin; Ray Novak; Chris Woodcock; Nigel Wright
#308
Senator Gerstein is meeting with Deloitte at 4. He now has our questions for Deloitte and
will be back to me after the meeting.
March 6, 2013 7:00 AM

From: Google Alerts
To: Michael Duffy
Subject: Google Alert mike duffy
#309
Petition asks for review of Mike Duffys residency

The Guardian Charlottetown
A Prince Edward Island man has started a petition asking for a public review of Conservative
Senator Mike Duffys eligibility to present P.E.I. and asking the Ghiz government to publicly
declare him a non-resident.
94
March 6, 2013 10:13 AM

From: Janice Payne
To: Arthur Hamilton
Subject: Fw: Senator Duffy request for input please
#310
Arthur I heard from no one in reply to this yesterday. I would like to write to Deloitte today
and move this forward. Have you been able to speak to Nigel?
March 6, 2013 10:19 AM
#311
I have now spoken to Senator Gerstein.

Deloitte has reported to him that their mandate on Duffy comes from a sub-committee
chaired by Senator Marshall and that the mandate limits Deloittes ability to pull off what we
want.
I do not believe that this office has seen this mandate.
It seems that our goal to have Deloitte write to the committee stating that their work is done
with Senator Duffys repayment may be impossible due to the wording of this mandate.
I will contact Senator Marshalls office to get the mandate if this chain believes it would be
useful.
Senator Gerstein confirmed that his channel into Deloitte is open and is happy to continue
assisting us.
Patrick
March 6, 2013 10:38 AM
From: Arthur Hamilton
To: Janice Payne
Subject: Re: Senator Duffy request for input please
#312
Yes I understood Ben would contact you directly. Ill reach out to him now.
March 6, 2013 11:31 AM
From: Nigel Wright
#313
We might need a meeting between you guys, Beth Marshall and Irving. Also, David Tkachuk
says he would be OK with all this, just needs to be kept in the loop. He will back off
suggesting to Duffy that he meet with Deloitte right now.
March 6, 2013 1:07 PM
From: Janice Payne
To: Arthur Hamilton
Cc: Christine King
Please update me. Surely I should send the note I suggested to Senator Tkachuk.
95
#314
March 6, 2013 2:42 PM

#315
Janice has called me and left a voicemail following-up on her email below, asking if we are
okay with the proposed letter below being sent. Please let me know if, and how, youd like
me to respond.
March 6, 2013 2:46 PM
Cc: Ray Novak; Chris Woodcock
#316
I dont believe she should reply until we know that Deloitte will do what we want them to
after they receive it. At this time we do not know for sure.
March 6, 2013 2:58 PM
From: Nigel Wright
Cc: Ray Novak; Chris Woodcock
#317
I agree. I spoke with Sen. Tkachuk during Caucus. I told him that it is not wise to advise Sen.
Duffy to ask Deloitte to withdraw from their review and risk committing them to an answer
without all the work having first being done to receive a helpful answer. Sen. Tkachuk said
he agreed with this and then asked to be kept in the loop on strategic things like that. Of
course, it had all been shared with him, but perhaps had not made an impression. And there
are our internal exchanges on having Irving speak with Sen. Marshall, who, we now believe,
chairs the subcommittee that gave the mandate to Deloitte regarding Sen. Duffy and would
presumably be the source of any authority if felt it needed to interpret whether that mandate
can be discharged in the way that we have discussed. I think that Gerstein Marshall
conversation is scheduled for 4 pm today.
Ben, are you not on any of those emails or PINs? I think it would be helpful for Ms Payne to
understand why we see danger in the letter below and some assurance that we continue to try
to get this resolved. I do not think you need to take the aggressive tone with her that I asked
you to use before, but it is worth noting that Sen. Duffy enraged many Senators yesterday
with remarks about his own situation and about PMOs role. Several of those same Senators
sit on the subcommittees and committee that will eventually come to a conclusion and make
a report on Sen. Duffy, It is not just me who is hearing this; Ray has also got several earfuls
on it. Sen. Duffy is making it harder for the subcommittee to accept his change of practice
and offer to repay as a full discharge of the matter. That is just friendly advice to his lawyer.
96
March 6, 2013 3:02 PM

From: Ray Novak
To: Patrick Rogers; Benjamin Perrin; Nigel Wright
Cc: Chris Woodcock
#318
Agree. I was pretty frank with Mike this morning about attacking the very people who are
trying to help him. Unfortunately he and Vern traded expletives shortly thereafter.
(Mike was in a state of over waking up to a lawn-sign in Kanata calling on him to resign, and
a likely resolution in the PEI leg asking that he be fired)
March 6, 2013 3:20 PM
To: Patrick Rogers; Nigel Wright; Ray Novak
Cc: Chris Woodcock
#319
SOLICITOR-CLIENT PRIVILEGED
Nigel: I have been on some, but not all of the exchanges on this, and have not be part of any
of the meetings or consultations with members of the Senate so am very much a messenger
here. That is fine, of course, but that is why I am looking for direction on how to reply
clearly to her given the sensitivities here.
Based on the below, I will tell Janice:
1) It would not be prudent to send the draft letter below at this time.
2) Senator Duffy is creating serious difficulties in his dealings with his colleagues and his
remarks about our offices role.
I can leave it at that if you like. She will likely ask what they should do about Deloittes
request for documentation. I can refuse to answer if that is what you prefer. Please advise.
March 6, 2013 3:35 PM
From: Nigel Wright
To: Patrick Rogers; Ray Novak; Benjamin Perrin
Cc: Chris Woodcock
#320
Please include Ben on internal exchanges on this matter so that I do not have to write
multiple emails every time Duffys lawyer makes contact.
Ben, as noted below, on item #1, please explain why we see danger in the approach she
asked about. On item #2, please take the tone I indicated. Regarding what they should do in
response to Deloittes request, you could repeat what you would have told her earlier, which
is that the Senators responsible are attempting to engage with Deloitte. I wish we could say
more, but it takes an interminable amount of time to make anything happen on the Senate
side. You will get a report after the 4 pm meeting, so perhaps you will be able to tell her
more then about whether Duffy should respond directly to Deloitte or wait for Deloitte to
change its request.
[Continued below]
97
March 6, 2013 3:35 PM

From: Nigel Wright
Cc: Chris Woodcock
#321

A much lower risk approach, if we do not have very good comfort after 4 pm that Deloitte
will withdraw its request for data will be for Duffy to write them stating that he believes the
requested information to be redundant given that he understands their mandate as regards
him to be limited to his claim of primary residence in PEI and the payments that flows
directly and specifically from that claim, and given that he has agreed to repay all such
amounts and to not make the same claim going forward, and Duffys view that this
comprehensively addresses the scope of Deloittes enquiry. I dont love that relative to
having Deloitte arrive at that conclusion first, but I like it better than Duffy explicitly asking
Deloitte to opine on this. I would do it if Ms Payne and Duffy perceive that their refusal to
provide the requested data is giving rise to the risk that Deloitte will simply deem them to be
non-responsive.
March 6, 2013 4:02 PM
To: Nigel Wright; Ray Novak; Benjamin Perrin
Cc: Chris Woodcock
#322
I may have been the source of some confusion here.

There is no meeting today between Senators Marshall and Gerstein at 4pm.
Yesterday, Senator Gerstein had a meeting with Deloitte at 4pm.
This morning you asked that Senators Gerstein and Marshall meet but I have been unable to
line them up as of yet. I will continue to do so.
I am sorry about the confusion.
Patrick
March 6, 2013 6:03 PM
To: Nigel Wright; Ray Novak; Benjamin Perrin
Cc: Chris Woodcock
#323
I have now spoken to Senator Marshall.

She and her committee are NOT responsible for the Duffy order to Deloitte.
She claims that Tkacuks steering committee is.
This obviously calls into question Senator Gersteins contact but I think Chris and I should
work with Tkachuk to get the mandate and share it with Senator Gerstein.
Patrick
98
March 6, 2013 6:05 PM

From: Nigel Wright
Cc: Chris Woodcock
#324
Thank you.
March 6, 2013 8:42 PM
#325
Tkachuk has promised to deliver the mandate tomorrow. I will follow up to ensure it is
delivered.
March 6, 2013 9:44 PM
From: Nigel Wright
To: Patrick Rogers; Ray Novak; Benjamin Perrin; Chris Woodcock
#326
Thx.
March 7, 2013 12:35 PM

From: Janice Payne
To: Benjamin Perrin
#327
I can speak between 3 and 4 today if you have an update for me. If that time is not suitable,
please suggest a different time this afternoon. Thank you.
March 7, 2013 12:51 PM
From: Katrina Shave
To: Chris Woodcock
Subject: FW: Statement of work Sen. Duffy
#328
Hi Chris,
As per request from Sen. Tkachuk.
Best,
[Attached is the mandate provided to Deloitte] [Appendix A, Tab 23]
March 7, 2013 12:55 PM
From: Janice Payne
To: Arthur Hamilton
Subject: May we have a short chat today?
#329
99
March 7, 2013 1:02 PM

To: Janice Payne
#330
Nothing new
March 7, 2013 1:03 PM
From: Janice Payne
To: Benjamin Perrin
#331
Any better idea re timetable? Is the matter being delayed for reasons of strategy? Happy to
talk.
March 7, 2013 1:04 PM
To: Patrick Rogers; Benjamin Perrin; Nigel Wright
Subject: Fw: Statement of Work Sen. Duffy
#332
Deloitte mandate is attached.

March 7, 2013 1:07 PM
From: Nigel Wright
To: Patrick Rogers; Benjamin Perrin; Chris Woodcock
Subject: RE: Statement of Work Sen. Duffy
#333
This is perfect. It completely permits Deloitte and the Subcommittee to say that the task as
related to Sen. Duffy is rendered moot by his decision to withdraw his claim of Cavendish as
his primary residency and to repay the expenses that had been associated with making that
claim.
March 7, 2013 1:07 PM
To: Nigel Wright; Benjamin Perrin; Chris Woodcock
#334
I will get this to Senator Gersetin.

March 7, 2013 2:21 PM
From: Janice Payne
To: Gary Timm
#335
We are working on this and related matters. I will be back to you as soon as I am able.
100
March 7, 2013 2:31 PM

#336
Senator Gerstein has this and has committed to getting our views to Deloitte today.
March 7, 2013 3:00 PM
#337
Thank you.
March 8, 2013 10:24 AM

From: Jordan Press [Parliamentary Reporter for Postmedia News]
To: Fred Delorey
Subject: Sen Wallin
#338
Mr. Delorey,
Just writing because wanted to ask the party if there had been any discussions about helping
Sen. Wallin repay some of her senate travel claims that involved partisan work. For context, I
also wanted to know under what circumstances the party would provide funding to a senator,
and how that decision is made. Id also like to know if similar talks have been held in regard
to Sen. Duffy and his pledge to repay about $90,000 in housing claims.
Deadlines for me is 3:30 p.m.
Cheers.
March 8, 2013 11:09 AM
From: Fred Delorey
To: Chris Woodcock
Subject: Fw: Sen Wallin
#339
Questions from Postmedia below about Sen. Wallins travel.

I dont have any background on this, do you?
March 8, 2013 12:36 PM
From: Janice Payne
To: Arthur Hamilton
Cc: Christine King; Michael Duffy
#340
I have been trying to reach you without success. It is important that we speak today. Please
give me a call at 613-231-8245 or my cell at 613-889-1502. Thank you.
101
March 8, 2013 1:15 PM

To: Nigel Wright; Patrick Rogers; Chris Woodcock
#341
Privileged.
Patrick: do we know how Deloitte responded?
March 8, 2013 1:27 PM
#342
No. I will call Senator Gerstein.

March 8, 2013 3:12 PM
#343
Senator Gerstein has just called.

He agrees with our understanding of the situation and his Deloitte contact agrees.
The stage were at now is waiting for the Senators contact to get the actual Deloitte auditor
on the file to agree.
The Senator will call back once we have Deloitte locked in.
March 8, 2013 3:26 PM
From: Nigel Wright
To: Patrick Rogers; Benjamin Perrin; Chris Woodcock
#344
Thank you.
March 8, 2013 4:11 PM
To: Nigel Wright
Subject: Fw: Sen Wallin
#345
I assume we would not comment on all of the below?
102
March 8, 2013 4:21 PM

From: Nigel Wright
To: Chris Woodcock
Subject: Re: Sen Wallin
#346
I dont know whether we should just kill it. The Party will not be paying for any of Sen.
Duffys expense claims re his secondary residence claim. The Party would only cover
expenses incurred by Senators for doing Party business. Check that with Dan, of course. I
sort of feel we should comment.
FYI only. No such discussions with Wallin. There was discussion re Duffy, but decided no
CPC funds to be used.
For you only: I am personally covering Duffys $90K.
March 8, 2013 4:27 PM
To: Nigel Wright
#347
We could say:
No. In general, the Party would only cover expenses incurred for party business.
March 8, 2013 5:27 PM
From: Janice Payne
To: Arthur Hamilton
Cc: Christine King
Subject: Thank You
#348
Nigel spoke to MD and was reassuring.

Please give me what update you can on when we can expect to be in funds.
Thank you.
Have a good w/e.
March 8, 2013 11:29 PM
From: Nigel Wright
To: Chris Woodcock
#349
Ok. Just check with Dan Hilton.
103
March 14, 2013 7:35 AM

From: Janice Payne
To: Benjamin Perrin
#350
Are you able to give me an update?

March 14, 2013 8:04 AM
To: Janice Payne
#351
Privileged
We are making some progress. Please continue to hold tight.
March 19, 2013 10:00 AM

From: Janice Payne
To: Michael Duffy
Cc: Arthur Hamilton
Subject: Re: FYI The media is asking I am ignoring
#352
Yes. Stay quiet pls.

Arthur as discussed yesterday please try and update us both on all matters.
With March break over, this is heating up again.
March 20, 2013 12:54 PM

From: Janice Payne
Cc: Christine King
#353
We negotiated an arrangement on Feb 22 that remains in limbo.

Senator LeBreton advised Senators on March 19 that no one should raise questions about or
bring any pressure to bear on Deloitte. Our client is not sure how to read this in light of the
commitment we had that he would be withdrawn from the process.
How should we read Sen. LeBretons comments? Will the commitment and the balance of
the arrangement we negotiated for Sen. Duffy be honoured?
We have worked hard to avoid the media and be team players. We have been more than
patient. We need some clarity on process.
Sen. LeBreton also said big things are coming. We need to know where our client stands
asap.
104
March 20, 2013 1:02 PM

#354
Privileged
See below. I have no heard about the developments below.
March 20, 2013 1:04 PM
From: Nigel Wright
To: Patrick Rogers; Ray Novak; Chris Woodcock; Benjamin Perrin
#355
I dont believe I know anything about the March 19th reference.

I have been on the phone constantly with Gerstein who has been trying to arrange the
necessary commitments from Deloitte but to date he hasnt been able to receive those
assurances.
March 20, 2013 1:54 PM
From: Nigel Wright
#356
I also dont know what Sen. LeBreton said to the Senate caucus yesterday. I am concerned,
given the email below, whether caucus confidentiality has been violated.
Ben, you are up to speed with advice being provided about what Deloitte could do in this
situation. I am sure that Sen. Duffy has been patient. If so, no one has benefit from that more
than Sen. Duffy himself as he has not been the subject of the additional negative media and
public comment that he would have been had he not avoided the media. We too have been
patient. As we explained before, our job was made more difficult by intemperate things that
Sen. Duffy has said to his colleagues, but we continue to believe that there is a way forward
here within the spirit of our discussions with Sen. Duffy.
March 20, 2013 4:06 PM
From: Marie France Bonnet
To: Janice Payne
Cc: Michel Patrice; David Tkachuk; Gary OBrien
Subject: File No. 16138-2
#357
Good afternoon Ms. Payne,

Please find attached Mr. Patrices response following your letter dated February 20, 2013.
[Letter dated March 20, 2013 attached] [Appendix A, Tab 24]
105
March 20, 2013 4:20 PM

From: Janice Payne
To: Marie France Bonnet
Cc: Michel Patrice; David Tkachuk; Gary OBrien; Christine King
Subject: Re: File No. 16138-2
#358
Thank you. Please advise when these instructions were provided to Deloitte.
Please also, as requested, confirm that upon payment of the housing allowances previously
paid, which he has offered to do notwithstanding he believed that the claims were proper,
Senator Duffy will be removed from the Deloitte audit.
Thank You.
March 20, 2013 7:24 PM
To: Patrick Rogers; Ray Novak; Nigel Wright; Benjamin Perrin
#359
Senator Tkachuk received an email from Ms. Payne today seeking confirmation that the audit
would be called *off* upon payment. He is awaiting a suggestion from us on a response.
March 20, 2013 7:34 PM
From: Nigel Wright
#360
Very dangerous tactic by her. Also, I wonder if she is paying attention, because Ben will
have explained to her several times that it is not the audit being called off, but rather
Deloitte not having to come to a conclusion on primary vs secondary residence since Sen.
Duffy has taken that issue off the table by conceding it, which is the full sum of what I
discussed with Sen. Duffy. I fully expect Deloitte to issue a report my hope is that it is
limited to a dollar amount owing based on the assumption that Kanata is the primary
residence, an assumption made valid by Sen. Duffys decision not to contest that point.
I will let someone else suggest the response.
March 20, 2013 7:36 PM
To: Patrick Rogers; Ray Novak; Nigel Wright; Benjamin Perrin
#361
I think he should just say he will send her an update when there is an update.
March 20, 2013 7:37 PM
To: Patrick Rogers; Ray Novak; Chris Woodcock; Nigel Wright
#362
I agree. She is just not getting it. Nigel: do you want me to give her the same line or have
another discussion with her?
106
March 20, 2013 7:40 PM

From: Nigel Wright
#363
Id be very happy for you to have a discussion with her Ben. Also, I am not sure how to do
this, but let her know that if she discusses any understanding with anyone outside of PMO,
we will not hesitate to correct any statement that is not 100% accurate.
March 21, 2013 1:23 PM

#364
PRIVILEGED
I spoke to her and conveyed all points clearly to her.
March 21, 2013 1:31 PM
From: Janice Payne
To: Arhutr Hamilton
Cc: Michael Duffy; Christine King
Subject: Please call me
#365
Arthur Ben spoke to me today. He really has no update beyond saying that the matter is
still be worked on and that the PMO is committed to the same strategy for Senator Duffy. HE
could not tell me about funds and agreed I should ask you about the status of funds.
Mike, I will update you in a bit more detail when you call me but that is the essence of it.
Please talk to me before speaking to anyone else.
March 21, 2013 1:33 PM
#366
Just heard from Gerstein. Heres the latest and most useful information yet from Deloitte
Any repayments will not change Deloittes conclusions
Because they were asked to opine on residency
However, they cant reach a conclusion on residency because Duffys lawyer has not
provided them anything
This is despite their attempts use public information about Duffys residence
Their report will state that Duffys lawyer did not provide information when
requested
They were asked to complete the work by the end of March and plan to.
107
March 21, 2013 1:41 PM

#367
PRIVILEGED
How should we propose that the Senator engage with Deloitte in light of this? They will be
very unhappy to state the obvious since this is completely at odds with what they understood
would occur, and as we have clarified with respect to what we were working towards per
below.
March 21, 2013 1:41 PM
From: Janice Payne
To: Benjamin Perrin
Cc: Christine King
#368
Ben, further to our conversation, given the lack of concrete results thus far and the ultimate
objective as you described it to me, I see no reason not to send the message I suggested
below to Deloitte. If you disagree, please advise today and explain why not. I need to try and
advance this matter for my client.
March 21, 2013 1:44 PM
To: Janice Payne
Cc: Christine King
#369
Please hold. I literally just received an email on this issue. We will need to assess it and get
back to you tomorrow. Everyone is in Budge Lock-up starting now so we will be unavailable
for most of the rest of the afternoon.
March 21, 2013 1:45 PM
From: Janice Payne
To: Benjamin Perrin
Cc: Christine King
#370
I will expect to hear from you tomorrow. Please suggest a time and I will make myself
available if I can.
108
March 21, 2013 1:45 PM

Subject: FW: Senator Duffy request for input please
#371
PRIVILEGED
FYI I asked her to hold so we can assess next steps in light of Patricks last email.
Her reference to the ultimate objective was the one articulated by Nigel in respect of the
Deloitte report earlier.
March 21, 2013 1:46 PM
#372
I may be wrong but I would propose that the Senator continue to not engage with Deloitte. I
believe that we should make arrangements for repayment knowing that Deloitte will not say
one way or another on his residency.
If asked following the report why he didnt participate with Deloitte the Senator can say
because he had already made the decision to repay the money and as he said at the time, he
looked forward to moving on. It is then up to our esteemed Senators on the committee and
our Senate leadership to move on.
March 21, 2013 1:52 PM
#373
At a minimum, I think in good faith they need to know the info you found out. We would
then need to convinced them why they should do nothing. The Senators instinct may be to
go in and fight this out again with Deloitte. The optics look really bad on it.
How about the email she proposed? I think we should reply to her suggestion from Sen
Tkachuk with a no concerns with it:
From Janice:
Senator Tkachuk took the initiative to speak with Senator Duffy today and suggested to him
that I write to Deloitte (G Timm) and state the following
As you are no doubt aware, Senator Duffy has decided to resolve this matter by repaying the
housing allowance paid to him since his appointment. He does so not because he believes he
improperly claimed the allowance but because the rules are not clear and he prefers to make
the repayment rather than continue to suffer the considerable distraction that this matter has
caused him and his family.
We are making arrangements to provide that payment shortly.
Please confirm that he will be withdrawn from the review you have been asked to undertake
as soon as the repayment has been made.
Please also advise whether it is appropriate to send the amount to be repaid to your attention
for delivery to the Senate or whether your clients prefer some other arrangement for
payment.
109
March 21, 2013 2:00 PM

From: Nigel Wright
#374
I do agree with Patricks suggestion. We have exhausted our avenues, and I think that is the
best we can do. Ben, I would be OK participating in a call to Janice to explain. While I
would not encourage them to send the response they drafted because I think withdrawn from
the review is an odd request, I would suggest that they send a similar response essentially
making the point that we have been making that since Sen. Duffy has taken off the table
the one issue DT was asked to review, they do not see a purpose for that review. They will
want to add or any reason to provide the information requested. We can never suggest that
they say this latter bit, because we cannot trust them never to say that PMO told them not to
respond to DTs requests for information.
As upset as they might be, I suspect that Sen. Duffy will still want some aspects of the
arrangement to remain in effect.
March 21, 2013 2:01 PM
#375
Thanks, Nigel. I will ask David to help arrange the call.

March 21, 2013 3:16 PM
From: Gary Timm
To: Janice Payne
Cc: Christine King
#376
Good afternoon Ms. Payne,

Further to the correspondence below, I am writing to determine:
1. Whether the information requested will be provided; and
2. If the information will be provided, approximately, when it will be provided.
Regards,
March 21, 2013 3:20 PM
From: Janice Payne
To: Benjamin Perrin
Cc: Christine King
#377
I am being pressed by Deloitte. I need to send my draft message but will wait til we speak
tomorrow.
110
March 21, 2013 4:00 PM

To: Christine King
Cc: Rebecca Lee
Subject: Call with Nigel Wright and Ben Perrin
#378
Dear Mrs. King,

I understand that Mrs. Payne and Mr. Perrin have discussed the need for a call tomorrow
regarding Senator Duffy. Nigel Wright, the Chief of Staff to the Prime Minister, and a
number of individuals from the Prime Ministers Office would also be on the call, including
Ben Perrin. As you can imagine, things are very busy here in Ottawa at the moment. I would
like to propose a call at 1:30-1:5- pm EST Friday, March 22. Please let me know if this time
will work for Mrs. Payne.
If this time is agreeable, please advise me on what number I can call to connect the relevant
parties.
March 21, 2013 6:06 PM
To: Nigel Wright
Subject: Duffy
#379
Hi Nigel. Senator Duffy was whining to me this afternoon in the Senate Chamber saying
Carolyn Stewart-Olsen and David Tkachuk are not giving him any assurance that the audit
would be withdrawn even though he reminded them that he has a commitment from you and
PMO. I said Mike you have just got to trust us on this and please dont crashing around
invoking Nigels name or that of the PMO. Go through your lawyer and pay the money Im
sure that everything will be fine. He said he heard Carolyn was going to move a motion to
force him to sit as an Independent. I asked where on earth he heard such nonsense and
wondered if he lies awake at night dreaming up these things! I assured him that this is not
going to happen! Just so you know. Marjory
March 21, 2013 8:12 PM
From: Nigel Wright
Subject: Re: Duffy
#380
Thanks Marjory. As long as you and I stay together on this we can minimise the damage
already caused. I am scheduled to speak with Mikes lawyer on Friday. I am surprised at his
lack of perspective. Nigel
March 22, 2013 8:32 AM

To: Janice Payne
Subject: Re: Please call me [IWOV-Legal.FID1685658]
#381
Thanks for the note Janice.

Im finishing a hearing today, down in Kitchener. Can we speak at some point over the
weekend, or Monday?
111
March 22, 2013 10:21 AM

From: Janice Payne
To: David van Hemmen; Christine King; Benjamin Perrin
Subject: Re: Call with Nigel Wright and Ben Perrin
#382
Ben, would it be helpful to have Senator Duffy on this call? Please let me know.
March 22, 2013 10:28 AM
To: David van Hemmen; Christine King; Janice Payne
#383
Wed prefer the call just be with you if thats okay.

March 22, 2013 11:01 AM
From: Janice Payne
To: David van Hemmen; Christine King; Benjamin Perrin
#384
Sure. Please let me know who will be on the call with you. Thanks.
March 22, 2013 11:19 AM
To: Janice Payne; Christine King; Benjamin Perrin
#385
The participants on our end will be Nigel Wright, Ray Novak and Ben Perrin. I will initiate
the call and connect everyone.
March 22, 2013 1:57 PM
From: Nigel Wright
To: Benjamin Perrin; Patrick Rogers; Chris Woodcock; Ray Novak
Subject: letter
#386
March 22, 2013 2:00 PM

To: Nigel Wright; Patrick Rogers; Chris Woodcock; Ray Novak
Subject: Re: letter
#387
Privileged
Patrick we need this attached letter to be updated to date please (ie it is calculated to late
February). We would like it for Monday.
March 22, 2013 2:02 PM
To: Nigel Wright; Patrick Rogers; Benjamin Perrin; Ray Novak
Subject: Re: letter
Patrick I can call Sen Tkachuk
112
#388
March 22, 2013 2:04 PM

To: Nigel Wright; Chris Woodcock; Benjamin Perrin; Ray Novak
Subject: Re: letter
#389
Im happy to call with you if youre around.

March 22, 2013 2:21 PM
To: Nigel Wright; Patrick Rogers; Benjamin Perrin; Ray Novak
Subject: Re: letter
#390
The letter has been requested. We should have it today.

March 22, 2013 3:24 PM
From: Katrina Shave
To: Chris Woodcock
Cc: Robin Hay
Subject: Draft letter: repayment of housing allowances
#391
Hi Chris,
Please see attached a draft letter for Sen. Duffy prepared by Senate Finance. Please note that
there is no change in the amount owed because the interest is calculated annually on March
31. So, there would be a change only if the payment is made after March 31.
March 22, 2013 3:37 PM
To: Nigel Wright; Ray Novak; Benjamin Perrin; Patrick Rogers
Subject: Fw: Draft letter: repayment of housing allowances
#392
Attached is a draft of the letter. Note the indication that interest accrues on the 31st.
March 22, 2013 3:37 PM
Subject: Re: Draft letter: repayment of housing allowances
#393
I will let Janice know the number.

March 22, 2013 3:41 PM
To: Janice Payne
Subject: Follow-up
#394
Dear Janice,
The Senator should have a letter indicating the amount as $90,172.24 (total including
interest). This is the amount so long as it is paid before March 31, 2013.
113
March 22, 2013 3:52 PM

From: Nigel Wright
#395
Thanks Ben. You could share the draft letter itself, since that will give her comfort.
March 22, 2013 3:54 PM
#396
Will do, thanks.

March 22, 2013 3:55 PM
To: Janice Payne
Subject: Re: Follow-up
#397
See attached documentation.

[Attached are Letter dated February 27, 2013 and Letter dated March 25, 2013] [Appendix
A, Tab 25]
March 23, 2013 10:38 AM

From: Janice Payne
To: Benjamin Perrin
#398
Ben, yesterday we discussed the Senator sending a cheque to Deloitte with a letter explaining
our position that the ongoing review should now be moot. I am preparing such a letter.
Would it be preferable to send the chq and the letter to the Steering Committee as a reply to
this correspondence advising him of the amount owing? Perhaps with a copy to Mr. Timm at
Deloitte?
I would appreciate your and Nigels consideration on this and your further comments.
I expect to have my clients instructions by Monday a.m. and if he is in agreement, I would
like to proceed promptly on Monday.
Thank you.
March 23, 2013 11:00 AM
To: Nigel Wright
Subject: Fw: Follow-up
#399
Privileged
See below. I think her proposed approach is consistent with what we discussed. I think we
should ask to see a draft of the letter. Please advise.
114
March 23, 2013 11:36 AM

From: Nigel Wright
To: Benjamin Perrin; Ray Novak
#400
I think her approach works. I will send my cheque on Monday.

March 23, 2013 12:08 PM
From: Janice Payne
To: Benjamin Perrin
#401
I would also be grateful for any comment from you/Nigel on the draft letter suggested below:
I am enclosing Senator Duffys personal cheque payable to [?] in the amount of $90,172.23
in repayment of the housing allowance paid to him to date since his appointment including
interest calculated by the Steering Committee of the Standing Committee on Internal
Economy, Budgets and Administration.
As Senator Duffy has already publicly declared, while he understood at the time he claimed
the allowance that he was entitled to it, he no longer intends to contest the matter and prefers
instead to repay any amount that could be found to be owing by him.
He has now done so.
In the circumstances, we suggest that the review that Deloitte has been asked to undertake is
now moot. The considerable time necessary for Senator Duffy to compile the extensive
information and documentation required of him as well as his participation in the review of
that material, to say nothing of the public expense involved in same, is no longer necessary.
This matter has been an unfortunate and painful distraction for Senator Duffy. We trust that
he will now be able to return to devoting his full energies to his work as the Senator from
PEI.
March 23, 2013 12:29 PM
#402
Privileged
She just sent this over. Let me know if you have any comments.
March 23, 2013 12:31 PM
To: Janice Payne
#403
Privileged
Ive spoken with Nigel. Your proposed approach sounds fine (letter to the Steering
Committee with cheque as a reply to the correspondence advising him of the amount owing,
with a copy to Deloitte). Monday is fine for the cheque timeline also. I will let you know if
we have any comments on the draft letter.
115
March 23, 2013 12:47 PM

From: Nigel Wright
#404
I dont know whether either of you has thoughts, but I think that this is perfectly fine (and I
resist making minor suggestions since I would prefer to be able to answer, if necessary, that
PMO did not write it).
Nigel
March 23, 2013 12:59 PM
#405
I agree.
March 23, 2013 1:20 PM
From: Nigel Wright
#406
My cheque is in the correspondence folder. I dont have enough funds in my chequing

account, so I have emailed Murray Culligan to ask him to transfer them in from another
account. You might call him on Monday morning to assure that he is doing it, as I date my
cheque for Monday and I expect them to negotiate it that day. Thanks.
Nigel
March 24, 2013 6:40 PM

From: Janice Payne
To: Benjamin Perrin
Cc: Christine King
#407
Further to our discussion Friday, I can confirm that my client will follow the approach
recommended subject to the following.
1. Set out below is a somewhat revised letter that will accompany payment and which has
now been approved by my client.
2. Senator Duffy is understandably concerned that this may not resolve matters. He
therefore asks for assurance that should any Senator seek his removal, that Govt leader
in the Senate will urge her caucus to vote against such a motion as well as any motion to
refer the matter of his housing and expense claims for further investigation or action by
Deloitte or any other party. Please confirm that he can count on that support. This is
consistent with our previous understanding.
May we speak at 9 a.m. Monday morning or earlier to discuss and to review next steps?
Thank You
[Continued below]
116
March 24, 2013 6:40 PM

From: Janice Payne
To: Benjamin Perrin
Cc: Christine King
#408

24 March 2013 Letter to Sen. David Tkachuk, Chair Senate BOIE
I am enclosing Senators Duffys personal cheque payable to the Receiver General for
Canada in the amount of $90,172.24, in repayment of the housing and living allowance paid
to him since his appointment including interest calculated by the Steering Committee of the
Standing Committed on Internal Economy, Budgets and Administration.
As Senator Duffy has already publicly declared, he claimed the allowance because he
believed that he was entitled to do so. The Senate rules and the handbook he was given at the
time of his appointment reinforced that view and certainly lacked clarity.
He is looking forward to the Senates planned review of the rules for clarity on this issue.
However given the distraction and upset of all that has transpired to date, and the time and
effort further legal and/or other action would entail, the Senator has decided, not to contest
the matter and instead pay the amount stipulated above.
Wither the delivery of this letter, he has now done so.
In the circumstances, the review that Deloitte has been asked to undertake is now
unnecessary. The considerable time required for Senator Duffy to compile the extensive
information and documentation required of him by Deloitte as well as his participation in the
review of that material, to say nothing of the public expense involved in same, is no longer
needed.
This while matter has been extremely upsetting and painful for Senator Duffy and his family.
We trust that with this ex gratia payment, he will now be able to return to devoting his full
energies to his work as a Senator from PEI.
YVT
Copies to Senators Furey, Stewart-Olsen, OBrien and G Timm at Deloitte
March 24, 2013 6:51 PM
#409
Privileged
See below. I dont have major concerns with the revised draft letter (though Id have
preferred the initial draft). Let me know if youre okay with it. Also need guidance on how to
respond to point 2 below.
117
March 24, 2013 7:07 PM

From: Nigel Wright
#410
I agree tat we can live with the draft letter. I dont think that we can give the second part of
the undertaking until Patrick or Chris check with Senators LeBreton and Tkachuk. We can
give the first part.
March 24, 2013 8:07 PM
#411
Privileged
Adding Chris and Patrick to follow-up per below.
March 24, 2013 8:21 PM
To: Nigel Wright; Ray Novak; Chris Woodcock; Benjamin Perrin
#412
I will speak to Senator LeBreton at the 10 am meeting regarding her giving an assurance to
Duffy regarding the housing.
Chris and I can speak to Tkachuk regarding future studies/actions against Duffy.
March 24, 2013 8:25 PM
From: Nigel Wright
#413
It has to be handled very delicately. We are not asking Senators to absolve him of anything
they would refuse that, quite properly. We are asking them to treat the repayment as the final
chapter of the expenses issue relating to his designation of the PEI cottage as his primary
residence to this point in time. That is something to which Sens. LeBreton and Tkachuk and
Stewart-Olsen already agreed once.
118
March 25, 2013 7:47 AM

Cc: Patrick Rogers; Ray Novak
#414
Privileged
Hi Chris and Patrick,
We are on stand by awaiting word on this after your meetings as there is a desire, if we can,
to conclude this today. Please let me know once you have info. Thanks so much.
March 25, 2013 12:55 PM
To: Janice Payne
Cc: Christine King
Subject: Delivery
#415
Dear Ms. Payne,

I have a cheque to deliver to you on behalf of Mr. Wright. I am wondering if either you or
Christine is free at 3:45 pm to receive the cheque.
Yours truly,
March 25, 2013 1:00 PM
To: Chris Woodcock; Nigel Wright; Benjamin Perrin
Cc: Ray Novak
#416
LeBreton is onside. I am waiting to hear back from Tkachuk.
March 25, 2013 1:07 PM

To: Chris Woodcock; Nigel Wright; Benjamin Perrin
Cc: Ray Novak
Tkachuk just called.
He agrees that he will join LeBreton in fending off any attacks of residency.
Agrees that this will be the final chapter for Duffy in committee.
Patrick
119
#417
March 25, 2013 1:11 PM

From: Janice Payne
Cc: Christine King
Subject: Re: Delivery
#418
Yes. I did ask that it be certified?

March 25, 2013 1:12 PM
To: Janice Payne
Cc: Christine King
Subject: Re: Delivery
#419
Is it a bank draft.
March 25, 2013 2:36 PM
From: Janice Payne
To: Benjamin Perrin
Cc: Christine King
#420
I have spoken to my client about your clarification re item 2 below.

Senator Duffy would like some better clarity.
Please call me about this language:
He therefore asks for assurance that should any Senator seek his removal, the Govt leader in
the Senate will urge her caucus to vote against such a motion as well as any motion to refer
the matter of his housing and expense claims related to the designation of PEI as his primary
residence for further investigation or action by Deloitte, the RCMP or any other party.
March 25, 2013 3:01 PM
#421
PRIVILEGED
I can reply and say that what we said stands if you would like. I expect that may aggravate
them though and lead them to think something is being hidden.
Alternatively, if we dont think a crime has occurred here, we would surely not support a
motion referring it to the RCMP. We could add a caveat about based on the facts as they are
presently known.
120
March 25, 2013 3:06 PM

From: Nigel Wright
#422
We could have a separate sentence saying that the facts known to us do not warrant a
referral of this matter to the RCMP. I would support that. I have some vague recollection
from law school about it being improper for a lawyer to seek civil advantage in connection
with a promise to refer or to not refer a suspected criminal matter to the authorities. It just
seems politically indefensible to have an agreement not to refer any matter to the RCMP.
March 25, 2013 3:10 PM
#423
Can we say that the Senate leadership will urge their colleagues to vote against any motion
that attempts to investigate these issues further? But not make reference to any of the bodies?
March 25, 2013 3:21 PM
#424
Patrick: we already tried that. The original line referred generally to any third party. Now
they want the RCMP spell out.
Nigel: I agree that saying the facts known to us do not warrant a referral of this matter to the
RCMP is the most we should say. I can proceed with that now.
March 25, 2013 3:44 PM
#425
PRIVILEGED
I have spoken to her. It took some explaining, but she gets it and agrees with it.
March 25, 2013 3:45 PM
From: Janice Payne
To: Benjamin Perrin
Cc: Christine King
#426
Revised language as per our discussion for your review:

He therefore asks for assurance that should any Senator seek his removal, the Govt leader in
the Senate will urge her caucus to vote against such a motion as well as any motion to refer
the matter of his housing and expense claims up to the present time related to the designation
of PEI as his primary residence for further investigation or action by Deloitte, or any other
party.
121
March 25, 2013 3:45 PM

To: Nigel Wright; Ray Novak; Chris Woodcock, Patrick Rogers
#427
PRIVILEGED
See final below as discussed.
March 25, 2013 3:45 PM
From: Nigel Wright
To: Benjamin PErrin; Ray Novak; Chris Woodcock, Patrick Rogers
#428
Well done Ben.
March 26, 2013 11:51 AM

From: Christine King
To: Benjamin Perrin
Cc: Janice Payne
#429
Mr. Perrin,
I am writing to advise that we have just sent the cheque to Senator Tkachuk by courier.
March 26, 2013
#430
LETTER
From: Janice Payne
To: David Tkachuk
Cc: George Furey; Carolyn Stewart-Olsen; Gary Timm; Michael Duffy
Subject: Senator Michael Duffy, Our File No. 16138-2
March 27, 2013 1:40 PM

From: Michael Duffy
To: David Tkachuk; Katarina Shave
Subject: Fw: Shipment Alert #5606584
#431
122
March 27, 2013 2:10 PM

From: Katarina Shave
To: Michael Duffy
Subject: Fw: Shipment Alert #5606584
#432
Senator,
Your letter was in the Mail Room in Victoria Building. I went to pick it up in person.
Katarina
123
APRIL 2013
April 3, 2013 3:41 PM
To: Janice Payne
Subject: Senator Duffy [IWOV-Legal.FID1685658]
#433
Good afternoon Janice:

Please find enclosed my letter of todays date, and please let me know if the courier copy of
it does not arrive tomorrow.
Best regards,
[Letter date April 3, 2013 attached] [Appendix A, Tab 27]
April 17, 2013 10:32 PM

To: Nigel Wright; Joanne McNamara; Ray Novak
Cc: Patrick Rogers
Subject: Fw: Global National
#434
This Duffy piece is completely unnecessary. Ive asked Tkachuk to confirm to Global that it
is settled on behalf of the Committee.
Senator Expenses/ 18:40-18:42/ 5th story/ Negative
Mike Duffy Clipped
It has been a few weeks since Sen. Duffy said he would pay back the money he expensed for
living costs. Globals Mike LeCouteur asked the chairman of the committee for internal
economy if he has paid the money back yet and he apparently told him to speak to Mike
Duffy himself. Global shows Mike LeCouteur following Mike Duffy from the foyer of the
Senate to an elevator and then him basically cornering Sen. Duffy in the elevator demanding
to know if the money has in fact been paid back yet.
Transcript:
Mike LC: SENATOR, DUFFY, HOW ARE YOU? I WANTED TO ASK YOU A VERY QUICK QUESTION.
YOU WERE SUPPOSED TO PAY THE MONEY BACK. WE WANTED TO KNOW IF THAT HAS
HAPPENED YET.
Duffy: I THINK YOU SHOULD SPEAK TO THE CHAIRMAN OF THE INTERNAL EXONOMY.
Mike LC: HE TOLD ME TO SPEAK WITH YOU. HE SAID THAT I SHOULD CONTACT YOUR OFFICE
ABOUT THE REPAYMENT BECAUSE HE SAYS THAT YOU WERE THE ONE THAT WAS GOING TO
BE DECIDING THAT. HAS THAT HAPPENED YET? YOU HAVE PAID THE MONEY BACK YET?
Duffy: IM A MAN OF MY WORD.
Mike LC: YOU HAVE PAID IT BACK YET THOUGH? ITS BEEN TWO MONTHS. YOU HAVE PAID THE
MONEY BACK? >>
Duffy: WOULD YOU MIND LETTING ME OUT OF HERE.
Mike LC: JUST ANSWER MY QUESTION YES OR NO.
Duffy: IM NOT GOING TO ANSWER YOUR QUESTION. I TOLD YOU IM A MAN OF MY WORD.
Mike LC: YOU HAVE PAID THE MONEY BACK THOUGH?
Duffy: WHAT IS WRONG WITH YOU.
Mike LC: I WANT YO KNOW IF YOUVE FADE THE MONEY BACK.
124
April 18, 2013 4:03 PM

From: Michael Duffy
To: Melanie Mercer
Subject: Tkachuk V 7 Please print & send down
#435
18 April 2013
Confidential
Hon. David Tkachuk, Chair
Hon. George Furey, Vice-Chair
Board of Internal Economy
The Senate of Canada
OTTAWA
Gentlemen:
Following an informal conversation with Sen. Tkachuk Tuesday evening, I went through my
files for January 2012. I discovered that through a clerical error, per diems were
inadvertently charged for eleven days when I was not in the National Capital Region.
My regular staff person was away on maternity leave and a temporary worker processed that
claim.
This claim was clearly not appropriate, and I will reimburse The Senate without hesitation.
If you feel it helpful, I will be happy to appear before your committee or sub-committee or
auditors from Deloitte, to respond to questions on this issue.
[Letter dated April 18, 2013 attached] [Appendix A, Tab 28]
April 18, 2013 6:40 PM
From: Marieke Walsh
To: Michael Duffy
Subject: Interview Request The West Block with Tom Clark
#436
Hi Senator Duffy,
Are you available for an interview on the show this Sunday? We can pre-tape tomorrow,
Saturday or go live-to-tape on Sunday morning.
I look forward to hearing from your. Cheers,
125
April 18, 2013 6:44 PM

From: Simon Fecteau Labb
To: [Not identified]
Subject: Sen. Duffy admits he hasnt paid money back
#437
Sen. Duffy admits he hasnt paid money back

By Laura Stone and Mike Le Couteur Global News
April 18, 2013 5:59 pm
Conservative Senator Mike Duffy has not paid back the tens of thousands of dollars in
housing expenses he said hed return almost two months ago.
And now, he says he isnt sure hes required to.
A day after dodging questions from Global News, Duffy said he is waiting for an audit to
come out before repaying the money.
We havent heard from Deloitte. But I said Im a man of my word, and if repayment is
required, itll be repaid, Duffy said outside the Senate Thursday.
I didnt say I made a mistake. I said I may have made a mistake, he said.
Words are important.
In February, Duffy said he would pay back several years worth of housing allowances he
admits he may have mistakenly collected, blaming confusing forms.
Rather than let this issue drag on, my wife and I have decided that the allowance associated
with my house in Ottawa will be repaid, he said on a network television interview.
He alluded again to paperwork confusion Thursday.
I think everyone agrees theres confusion, and Ill be waiting to hear what Deloitte has to
say about the forms and about what the Senate should do to make it clearer for everybody,
he said.
I followed the forms as I thought they should have been filled out, and if I was wrong and
made a mistake Ill repay it. And if I wasnt wrong, I assume thatll be reported as well.
The journalist-turned-senator came under fire last year for claiming $33,000 in housing
allowances since 2010 after he reporter his primary residence was his cottage in Cavendish,
PEI the province he represents in the Red Chamber.
But Duffy has lived in the Ottawa suburb of Kanata for years, even before his appointment to
the Senate.
Senators are required to keep a home in the province they represent. If a senators primary
residence is more than 100 kilometres away from the National Capital Region, he or she is
eligible for an allowance to offset the costs of keeping a second home.
To prove where they live senators are required to fill out a declaration including the address
of their primary residence. The declaration also asks for details about a senators secondary
residence.
Duffy is one of four senators whose expenses are being scrutinized by an ongoing external
audit. The Senate had yet to set a date for the audits release.
- With files from Rebecca Lindell
April 18, 2013 7:02 PM
To: Michael Duffy
Subject: Fw: Sen. Duffy admits he hasnt paid money back
Are they misinterpreting your quote?
126
#438
April 18, 2013 7:10 PM

To: Nigel Wright
Subject: Fwd: Sen. Duffy admits he hasnt paid money back
#439
I think he may be denying repayment in hopes of getting some money back at the end of this
process. Otherwise I cannot explain this.
April 18, 2013 7:13 PM
From: Nigel Wright
To: Chris Woodcock
Subject: RE: Sen. Duffy admits he hasnt paid money back
#440
Yes, I have no explanation. It will be odd when it becomes known that he paid the money
back in March. It will anger me so much if he tries to get some back. Well just unleash
Tkachuk who will call him a thief.
April 18, 2013 7:18 PM
From: Michael Duffy
To: Chris Woodcock
Subject: RE: Sen. Duffy admits he hasnt paid money back
#441
They are twisting. As usual. I didnt confirm or deny.

Mike
April 18, 2013 7:20 PM
Subject: Fwd: Sen. Duffy admits he hasnt paid money back
#442
FYI. Id like to suggest that he contacts Global to correct this, but he cant exactly dial this
back to neutral without confirming he repaid.
April 18, 2013 7:20 PM
From: Michael Duffy
To: Marieke Walsh
Subject: Re: Interview request The West Block with Tom Clark
#443
No. Wait for deloittes report. Mike

April 18, 2013 7:23 PM
From: Nigel Wright
Subject: Re: Sen. Duffy admits he hasnt paid money back
#444
I would say he can do that. Maybe he would say he misunderstood the question, or was
simply declining to comment on the amount of the repayment until he has seen the final
report?
127
April 18, 2013 7:27 PM

From: Michael Duffy
To: David Tkachuk
Subject: Things
#445
David. I did not say yes or no on repayment. I simply told global to wait for deloittes. When
they tried to put words in my mouth I demurred. I sent that letter u wanted this pm. Ran inot
marj after your meeting and told her the same thing re global.
Marj thinks we shud not act on the pei health card until after deloittes is finished.
Mac harb told me he has hired former supreme court judge Michel bastarash to review the
rules on residency and per diems. Mike
April 18, 2013 7:28 PM
To: Nigel Wright; Chris Woodcock
Subject: Re: Sen. Duffy admits he hasnt paid money back
#446
I agree but can it be until the committee completes its work instead of the final report
because he did commit to pay preemptively.
April 18, 2013 7:32 PM
To: Michael Duffy
#447
Good idea. Mike I know this is difficult but as discussed, please keep repeating that you are
a man of your word and you are waiting the report on the outside auditor. Better still, try and
avoid taking calls or answering e-mails from the media. Marjory
April 18, 2013 7:57 PM
To: Chris Woodcock
Cc: Nigel Wright
Subject: Fwd: Interview request The West Block with Tom Clark
#448
Chris. FYI. He dropped into my office late this afternoon. He was all worked about the
media, rumours about the money owed, the actions of Internal Economy you name it. I
assured him that all of us are working on a plan to manage this once we have the audits and
have prepared the report to be tabled in the Senate. I told him once again that he must trust us
on this and not complicate the issue by talking to the media. When he left, he seemed to
understand. The Global story quoting him is not good but he did get around to saying he was
waiting for the audit. Marjory
128
April 18, 2013 7:59 PM

From: Nigel Wright
#449
Thank you Senator. We agree with you that he should repeat that he is a man of his word if
he gets ambushed and, better yet, not get ambushed. I am adding Patrick.
April 19, 2013 10:41 AM

From: Michael Duffy
To: Michael Duffy
Subject: Jordan Press called my office again today going to write MD is a liar
#450
I have never met Jordan Press myself. What about having someone say Stephen Lecce call
Jordan with these lines as background? Duff
19 April 2013
Proposed Media Lines for Jordan Press
Senator Duffy is s a man of his word.
Sen. Duffy repeated that mantra at the beginning of the Global interview yesterday. They
based their claims on a later portion which dealt with what ifs.
When was the last time, Postmedia had to follow Global News?
Have you considered why CBC and CTV and the Globe arent running this?
They know Sen. Duffy personally, and can read his shorthand, and I suspect they dont want
to look foolish when the Deloitte audit comes out in a few weeks.
April 19, 2013 11:44 AM
To: Michael Duffy; Stephen Lecce; Nigel Wright; Patrick Rogers
Subject :Re: Jordan Press called my office again today going to write MD is a liar
#451
Adding others. I would suggest the following:

Senator Duffy clearly said to Global that he is a man of his word. They based last nights
story on his response to what if questions later in the interview. The Senate is working to
ensure that expenses are appropriate, that the rules are appropriate and that this is reported
back to the public. We wont have anything to add until the audit from Deloitte is released.
April 19, 2013 11:48 AM
From: Nigel Wright
To: Michael Duffy; Stephen Lecce; Chris Woodcock; Patrick Rogers
#452
Sure, although is tis the time to transition to until the committee reports rather than
Deloitte report? Im easy.
129
April 19, 2013 11:51 AM

To: Michael Duffy; Stephen Lecce; Nigel Wright; Patrick Rogers
#453
Fixed:
Senator Duffy clearly said to Global that he is a man of his word. They based last nights
story on his response to what if questions later in the interview. The Senate is working to
ensure that expenses are appropriate, that the rules are appropriate and that this is reported
back to the public. We wont have anything to add until the committee reports.
April 19, 2013 2:20 PM
#454
From: Gary OBrien
To: Sandy Melo
Cc: Christopher Montgomery; David Tkachuk; Blair Armitage; Karen Schwinghammer
Subject : Draft Press Release
Sen. Tkachuk has asked that I forward this to you regarding a possible media release this
afternoon. Thanks
April 19, 2013 2:32 PM
#455
To: Gary OBrien
Cc: Christopher Montgomery; David Tkachuk; Blair Armitage; Karen Schwinghammer; Sandy Melo
Subject : Re: Draft Press Release
I just spoke to Tkachuk on the phone. Hes in a bit of a panic fearing that the Liberals will
leak that Duffy has repaid money. Therefore, he would like us to consider allowing him to
release the attached.
To my mind, nothing has changed at this point. We have seen no interested on this story
today. I do know though the Liberals are concerned by some of Duffys comments.
I understand that Tkachuk has told the Clerk that the release can go out on my say so if that
is the decision between now and Tuesday. (I gather he is out of reach on Monday for medical
reasons.)
April 19, 2013 3:01 PM
To: Chris Montgomery
Cc: Chris Woodcock; Sandy Melo; Johanna Quinney
#456
There has been zero interest in this today the media are totally fixated on the situation in
Boston, Mss. Sen Cowan called me to express his concern. I told him that I believed Global
assumed Sen Duffy had not paid back the money. I suggested we revisit this issue early in
the week and he agreed. Lets monitor this closely over weekend. Marjory
130
April 19, 2013 3:01 PM

From: Chris Montgomery
#457
Agreed. will inform Tkachuk. Many thanks!

April 19, 2013 4:58 PM
To: Nigel Wright; Stephen Lecce; Patrick Rogers; Carl Valle
Subject : Urgent - Duffy
#458
Jordan Press has somehow confirmed that Duffy has repaid. I think we need to confirm to
other media that are asking so we can end this confusing story. Global is running a story and
CTV likely is too. Nigel are you ok with this?
April 19, 2013 5:01 PM
From: Chris Montgomery
#459
Tkachuk has called again with the same question. He says Fife called him, off the record, to
seek confirmation that Duffy has paid back the money. Fife claimed he has a source who
says he did and Fife gave Tkachuk the figure to the dollar. Tkachuk says he said nothing
other than to tell Fife to talk to Duffy.
The Cheadle story and PVLs comments in QP are also problematic.
April 19, 2013 5:04 PM
From: Nigel Wright
To: Chris Woodcock; Stephen Lecce; Patrick Rogers; Carl Valle
Subject : Re: Urgent - Duffy
#460
Yes. What a schmozzle.

April 19, 2013 5:13 PM
From: Stephen Lecce
To: Chris Woodcock; Nigel Wright; Patrick Rogers; Carl Valle
#461
Statement for Senator Duffy:

In February I committed to repaying the allowance associated with my house in Ottawa.
I have always said that I am a man of my word. In keeping with the commitment I made to
Canadians, I can confirm that I have repaid these expenses.
I will not be commenting on this further until the audit is completed.
Sen. Tkachuk will confirm the total repaid was $90,172.24
131
April 19, 2013 5:14 PM

To: Chris Montgomery
#462
Who knew the exact $ figure? I dont believe this was known to many people. I did not know
it until I read the draft press release from the Clerk. I have warned David many times that
one has to be extremely careful about information given as background to Fife. Marjory
April 19, 2013 5:14 PM
To: Stephen Lecce; Nigel Wright; Patrick Rogers; Carl Valle
#463
Duffy will issue this so that he isnt being contradicted by Tkachuk. Tkachuk will confirm
April 19, 2013 5:16 PM
To: Marjory LeBreton; Chris Montgomery
Cc: Sandy Melo; Johanna Quinney
#464
Only the people in the room yesterday. We will need to confirm the amount, that it was
repaid in March, and nothing else. Chris/Johanna can you please action Tkachuk?
April 20, 2013 11:01 AM

From: Janice Payne
To: Gary Timm
Subject : Senator Michael Duffy
#465
As you know, we represent Senator Duffy.

I am attaching for your information a copy of a letter that he provided to Senator Tkachuk on
April 18th, 2013.
[Attached is letter dated April 18, 2013] [Appendix A, Tab 29]
132
April 20, 2013 12:47 PM

From: Gary Timm
To: Jill Anne Joseph
Cc: Guillaume Vadeboncouer
Subject : Senator D
#466
Good afternoon Jill Anne,

I received an email this morning from counsel for Senator D, wherein counsel provided a
copy of a letter, dated April 18, 2013, from Senator Duffy to Senator Tkachuk regarding an
informal conversation they had on the evening of Tuesday April 16, 2013. In the ltter,
Senator Duffy states:
If you feel it helpful, I will be happy to appear before your committee or sub-committee or
auditors from Deloitte, to respond to questions on this, or questions about my residency in
PEI.
Given this communication, we believe that we should be meeting with Senator Duffy and
also be requesting that he provide the documentation requested previously to be consistent
with the other Senators under review. We could undertake this meeting as soon as Senator
Duffy is available; however, it would have an impact on our report timing.
We look to your and the Senate Sub-committees direction.
April 20, 2013 12:57 PM
From: Jill Anne Joseph
To: Gary Timm
Cc: Guillaume Vadeboncouer; Gary OBrien
Subject : Re: Senator D
#467
Good afternoon Gary,

Thank you for this information. I will consult with the Clerk of the Senate, Gary OBrien,
who in turn will consult with the Chair of the Internal Economy, Senator Tkachuk, on this
matter. I agree that a meeting and the provision of requested documentation will further
assist your review of Senator Duffys claims and will provide more consistency with the
other Senators under review. As the reports stand alone, a short delay for this one may be
acceptable.
Regards
April 22, 2013 11:25 AM
From: Gary OBrien
To: David Tkachuk
Cc: Jill Anne Joseph
Subject : Confidential
#468
Hi Senator as per Deloittes email to Jill Anne, do you advise or encourage that Senator
Duffy meet with Deloitte and provide the documentation requested? Thanks
133
April 22, 2013 3:22 PM

From: Carolyn Stewart-Olse9
To: Chris Woodcock
Subject : Duffy
#469
Is asking to meet with Senate audit committee or the auditors themselves. Do you know why
he wants to escalate?
April 22, 2013 3:29 PM
Subject : Fw: Duffy
#470
Fyi
April 22, 2013 3:30 PM
From: Nigel Wright
Subject : Re: Duffy
#471
Never heard of this. Is bad.
April 23, 2013 2:23 PM

To: Nigel Wright; Patrick Rogers; Chris Woodcock
Cc: Sandy Melo
Subject : FW: Confidential. Tkachuk/Duffy
#472
Confidential FYI. Our office is shortly arranging for another meeting with the group.
April 23, 2013 2:46 PM
From: Nigel Wright
To: Christopher Montgomery; Patrick Rogers; Chris Woodcock
Cc: Sandy Melo
Subject : RE: Confidential. Tkachuk/Duffy
#473
I think it makes no sense for Sen. Duffy to meet with Deloitte. If I were him I would not
suggest a meeting with the Committee either. Chris, could someone from your office speak
with Sen. Duffy every two days so we are kept abreast of his developing thoughts on things
like this?
Perhaps one way for Deloitte to respond would be to welcome the offer to meet but stipulate
that Sen. Duffy would first provide all of the information that had been requested, so that a
review of that could provide the basis for the meeting.
134
April 23, 2013 5:43 PM

To: Nigel Wright; Patrick Rogers; Chris Woodcock; Marjory LeBreton; Sandy Melo
#474
Looping in the Minister

I am told that Steering decided today to send a letter to Duffy indicating that the audit has
concluded and he will therefore not have an opportunity to meet with the auditors.
I am also told that there may be a delay in Steering receiving the audits of one day due to
translation issues but that the timeline of releasing the audits that we discussed last week
remain intact.
April 23, 2013 6:04 PM
To: Nigel Wright; Patrick Rogers; Chris Woodcock; Chris Montgomery; Sandy Melo
#475
Thanks. This course of action makes sense. My only concern is Sen Duffy. Even though he
claims he is careful in what he says and does, the evidence is the opposite! We have to be
very careful what we say to him. Marjory
April 23, 2013 6:23 PM
#476
From: Nigel Wright
To: Marjory LeBreton; Patrick Rogers; Chris Woodcock; Chris Montgomery; Sandy Melo
I agree too that Steering should say what they propose.
135
April 24, 2013 4:25 PM

From: Internal-Regie
To: Michael Duffy
Cc: George Furey, Carolyn Stewart-Olsen; David Tkachuk; Gary OBrien
Subject: Senator Duffy - Deloitte
#477
Dear Senator Duffy:

I was informed by the Clerk of the Senate on Saturday, April 18, that Deloitte was in receipt
of a letter from your lawyer, signed by you to me, explaining errors in your claim of January
2012. In the letter, you offered to meet with the Subcommittee (Steering) or auditors from
Deloitte, if I felt it would be helpful. My office received the original letter on April 22, 2013.
At the outset of Deloittes investigation into your claims, you and your lawyer were asked to
provide additional documents and to meet with Deloitte. Despite repeated attempts, it is our
understanding that no additional documents were provided to Deloitte nor did you or your
lawyer meet with them.
We are now entering the reporting phase of the investigations and your offer to meet with
Deloitte stands to delay the process. Steering has determined that there should be no further
delays and is of the opinion that your concerns should have been addressed to Deloitte before
the preparation of the report.
Sincerely,
David Tkachuk
[Letter dated April 24, 2013 attached] [Appendix A, Tab 30]
April 25, 2013 12:03 PM

From: Jill Anne Joseph
To: Michael Duffy
Cc: Melanie Mercer; Kim Grandmaison
Subject: Deloitte report
#478
Dear Senator Duffy,

Please be advised that the Standing Committee on Internal Economy, Budgets and
Administration will announce today that the reports it has requested on residential expenses
will be received by the full committee May 9. The Committee will consider possible
recommendations and report to the Senate as quickly as possible.
You will be receiving Deloittes final report relating to your own expenses some time on
Monday, April 29. I will try to determine a more precise time and your office may let me
know where you wish to have it delivered, or if you prefer to pick it up in my office, 146-N.
Thank you, Senator.
136
April 25, 2013 3:11 PM

#479
From: Communications
To: SEN GLOBAL
Subject: NR/SEN INTENRAL ECONOMY (CIBA) CTTE: Residential Expenses Audits ***
COMM/SEN RGIE INTERNE (CIBA) CMT : Vrifications des frais relatifs aux rsidences
Standing Senate Committee on Internal Economy, Budgets and Administration
Timeline: Residential Expenses Audit
OTTAWA (April 25, 2013) Today, the Standing Committee on Internal Economy,
Budgets and Administration released a provisional date for receiving the requested external
audits of senators residential expenses.
Barring unforeseen delays, the committee chair, Senator Tkachuk, announced that the reports
on residential expenses will be received by the full committee May 9, 2013. The committee
will consider possible recommendations and report to the Senate as quickly as possible.
April 28, 2013 2:39 PM

From: Nigel Wright
Subject: Sen. Duffy
#480
Marjorie,
I spoke with Goldy Hyder last evening because Mike Duffy had called Goldy to retain him in
connection with what might happen over the next few weeks. We can count on Goldys good
judgement, which aligns with how we see things unfolding. We cannot count on Mike to
follow Goldys advice, but I am hopeful that getting the same advice from an independent
source could keep Mike on an even keel.
Nigel
April 28, 2013 4:33 PM
To: Nigel Wright
Subject: Re: Sen. Duffy
#481
Thanks Nigel. I cannot think of a better person to advise Mike. Now lets hope he listens.
Just to assure you, I will double my efforts to ensure that there is no reference to the
legitimacy of Senate seats in the report to be tabled as a result of the audits. It has never been
Internal Economys mandate to adjudicate on such issues. They are only responsible for
expenditures as they relate to Senate business and for the payment of expenses while on
travel status in the national Capitol. Finally, a lovely day. I worked in my garden for the first
time this year! Marjory
137
April 29, 2013 11:20 PM

From: Goldy Hyder
To: Nigel Wright
Subject: Follow up
#482
Nigel,
Checking to see if you still use this email.
Just got off the phone with him. I believe well be fine on the specific issue we discussed.
Have got him focused on closing this chapter and focusing on future (doesnt mean media
will).
Plan is to draft a statement in response to the report then leave for constituency.
There are three related issues I will need to discuss with you so we get on same page. Let me
know when you want to speak in coming days.
April 30, 2013 6:36 AM

From: Nigel Wright
To: Patrick Rogers
Subject: Fw: Follow up
#483
The specific issue was Mike not looking for any kind of repayment.
April 30, 2013 6:36 AM
From: Nigel Wright
To: Goldy Hyder; Patrick Rogers
#484
Thanks Goldy,
I am copying Patrick Rogers of our office, whom I would ask to call you on the releated
issues.
138
MAY 2013
May 1, 2013 11:45 PM
From: Goldy Hyder
To: Nigel Wright
Subject: Draft Statement
#485
Am meeting him Thursday at 10am to present this first draft to him as he is leaving for pei
Thursday and away until Sunday. Any thoughts you have on this are welcome and between
us. I expect it will be tweaked here and there and a better concluding line likely about getting
back to work or something to that effect I just wanted you to see the content, direction and
tone.
CAVENDISH, PEI Senator Mike issued the following statement, regarding the Deloitte
audit of the expenses of a number of senators released today.
In recent months, I have heard and understood the concerns from people across Canada
about expense controversies among some senators, including me. When questions like these
arise, involving those entrusted with the wise use of tax dollars, Canadians deserve nothing
but the highest standards of transparency and clarity in response. These questions go beyond
mere rules and administration, and strike at the high standards of integrity Canadians expect
of Parliament.
The Deloitte audit of expenses claimed by me and other senators has been a fair, impartial
effort by a credible third party to deliver that level of transparency and clarity. This audit has
indicated that rules and definitions with regard to residency and housing allowances, set by
the authorities in the Senate, are ambiguous and prone to misinterpretation. In this respect,
the audit is consistent with the position I have maintained since this conversation first arose.
But while the rules themselves may be unclear, my duty as a senator and as a custodian of
Canadian tax dollars is not. The Deloitte audit revealed a small number of expenses, totaling
just over $1000, for which my claims were deemed inappropriate, and which I would rightly
be expected to repay. But I believe it is incumbent upon me as a parliamentarian to put any
and all questions about my expenses to rest. To that end, prior to the release of this audit I
paid back just over $90,000 in housing expenses I claimed due to effectively having to
maintain two residences; one in Ottawa and one on Prince Edward Island. I will not be
seeking any portion of this requirement to be returned, even if the Deloitte audit would
suggest these expenses were claimed in good faith due to ambiguity in the rules.
I can only effectively represent the interests and values of the people of Prince Edward
Island if I have earned their trust and respect. I am honoured and humbled to serve the people
of my home province, and with the actions I have taken, I feel confident I can look them in
the eyes and assure them I am doing so with integrity. With these matters now dealt with, my
focus going forward will remain as it has been: to bring Prince Edward Islands perspectives
to Ottawa, and to be the most effective representative I can be on their behalf.
As a former journalist, I know if questions like these had arisen while I was on the
parliamentary beat, my colleagues and I would have justifiably pursued answers to them with
the same vigour we seem among media today. While I respect their continued interest in this
issue, I have responded to these questions with the actions I have outlined, and will be
declining any further media requests.
139
May 2, 2013 6:49 AM

From: Nigel Wright
To: Goldy Hyder
Subject: Re: Draft Statement
#486
I think it is fine Goldy. He might also be able to say that the $1000 (I had heard it was about
$1500) in expenses were claimed inadvertently or through administrative inattention, or
something like that because the optics of claiming while on a Caribbean cruise arent great.
May 2, 2013 7:54 AM
From: Goldy Hyder
To: Nigel Wright
Subject: Re: Draft Statement
#487
Ok.
May 2, 2013 2:16 PM
To: Chris Woodcock
Subject: Audit
#488
Liberals putting pressure to send them out to RCMP. May be a fight if we cant diffuse. Will
update you as I know. I said no. They will brief Justin next week apparently.
May 2, 2013 2:32 PM
Subject: Fwd: Audit
#489
FYI.
May 2, 2013 2:44 PM
From: Nigel Wright
Subject: Re: Audit
#490
By fight, I assume she means that the Conservative Senators will vote that down, and quickly
(not after weeks of debate).
May 2, 2013 2:46 PM
To: Nigel Wright;
Cc: Patrick Rogers
Subject: Re: Audit
#491
Yes, that is what she told me this morning. She just added that Beth Marshall expects the libs
or ndp to refer instead. This is obviously out of our hands.
140
May 3, 2013 2:42 AM

From: Goldy Hyder
To: Nigel Wright
#492
Latest draft statement comment welcome. Plan is to release after the report is released and
the Senate leadership has responded with its own statement about eliminating the
ambiguities.
He will be in PEI going about his business as Senator. No news conference but also no back
door exits with hand in cameras face. His response to any and all questions is to refer back
to the statement and that as far as he is concerned the matter is closed. We have advised any
engagement or taking bait on questions just stick to statement script.
Hell be in PEI a lot between now and Fall session of Senate.
May 3, 2013 11:44 AM
From: Nigel Wright
To: Goldy Hyder
Cc: Patrick Rogers
#493
Goldy,
Thank you. This is good, and addresses the issue that I had with the earlier draft. I have no
suggestions to make.
Nigel
May 7, 2013 6:44 AM

To: Michael Duffy
Subject: CTV Story
#494
Hi Senator,
Were using the following holding line following CTVs story on the audits. Senate
leadership and the Committee members all have it and wont be doing interviews.
- Chris
These are complex issues. The audits are being reviewed by the responsible subcommittees
and will be released as expeditiously as possible along with the committees
recommendations.
141
May 8, 2013 12:09 PM

Subject: Meeting
#495
Senator,
I am available to meet as soon as you are.
Patrick
May 8, 2013 12:12 PM
To: Patrick Rogers
Subject: Re: Meeting
#496
Sorry in meting now with Marj and Cowan then Caucus. Will come out as soon as I can.
Where are you?
May 8, 2013 12:13 PM
#497
Im in Langevin now but I am an email away from meeting you anywhere youd like.
May 8, 2013 12:24 PM
To: Patrick Rogers
#498
K will be in touch soon as I can. We have a steering meeting at 2 so we have time. Will get
to you before and take the changes forward.
May 8, 2013 12:59 PM
#499
Where should we meet?

May 8, 2013 1:09 PM
To: Patrick Rogers
Cc: Barb Lory-Leroux
#500
My office? Barb can you him number??? At 13:45??
142
May 8, 2013 1:12 PM

Cc: Barb Lory-Leroux
#501
I will be there.
May 8, 2013 1:53:35 PM
To: Chris Woodcock; Nigel Wright; David van Hemmen
Subject: Report on Duffy
#502
The meeting is about to begin at 2pm.

I just met with CSO. I gave her our changes. She agreed with them 100%.
I reinforced with her that the implementing of all of the changes to the report was the
fulfillment of her commitment to Nigel and our building. She indicated she understood this.
May 8, 2013 1:54:39 PM
From: Nigel Wright
To: Chris Woodcock; Patrick Rogers; David van Hemmen
Subject: Re: Report on Duffy
#503
Thank you Patrick. Sorry I didnt execute anything at caucus today. I am sure that she
blamed someone else for the inflammatory language.
May 8, 2013 1:56:50 PM
To: Chris Woodcock; Nigel Wright; David van Hemmen
#504
You are correct. It was all Tkachuks fault.

May 8, 2013 1:58 PM
To: Patrick Rogers; Nigel Wright; David van Hemmen
#505
She tried that on me earlier! Dave really wants this

May 8, 2013 2:34 PM
To: Patrick Rogers
#506
So I was too optimistic. Montgomery says we as Senators should not compromise ourselves.
143
May 8, 2013 2:35 PM

#507
This is the direction. Youre not compromising yourself. Youre fulfilling the commitments
that were made.
May 8, 2013 2:35 PM
Subject: Fw: Meeting
#508
Here is the latest from the committee. This is unbelievable.

May 8, 2013 2:37 PM
Subject: Fw: Meeting
#509
What!!!
May 8, 2013 2:37 PM
#510
Further, the changes are changes that you had beforehand.

May 8, 2013 2:41 PM
To: Patrick Rogers
#511
I am fight my way. No fun.

May 8, 2013 2:47 PM
#512
Latest.
144
May 8, 2013 3:00 PM

From: Nigel Wright
To: Patrick Rogers; Chris Woodcock
#513
Do I need to call Marjory? They think they are hurting Duffy, but they will end up hurting
the Prime Minister.
May 8, 2013 3:04 PM
#514
I can stop by her office as soon as Im done with the pm post-QP. If Chris is operating on the
Ministers instructions, she needs to know. If he is not, she definitely needs to know.
May 8, 2013 3:06 PM
Subject:
#515
Talked to the boss. Says the report has to be consistent with the other two, that you need a
claim to the money and that those paragraphs are crucial to the end.
May 8, 2013 3:08 PM
To: Patrick Rogers
Subject: Fw:
#516
See below [referring to email #512]

May 8, 2013 3:15 PM
To: Nigel Wright
Subject: Fw:
#517
I think you should call LeBreton.
145
May 8, 2013 3:29 PM

To: Nigel Wright
Subject: Re:
#518
I am in a meeting with
Montgomery,
LeBreton
Sandy
CSO
This is epic. Montgomery is the problem.
May 8, 2013 3:30 PM
Subject: Fw:
#519
May 8, 2013 3:40 PM

From: Nigel Wright
Subject: Re:
#520
Should I come over?

May 8, 2013 3:41 PM
Subject: Re:
#521
Were done. Patrick made it happen.

May 8, 2013 3:42 PM
From: Nigel Wright
Subject: Re:
#522
Nice work guys. Thank you very much.

May 8, 2013 6:06 PM
Subject: Any signs of products for tomorrow?
146
#523
May 8, 2013 6:08 PM

To: Chris Woodcock
Subject: Re: Any signs of products for tomorrow?
#524
Johanna is flipping you something momentarily.

May 8, 2013 6:09 PM
#525
Thx. Is this for Min Lebretons comments outside the senate?

May 8, 2013 6:10 PM
To: Chris Woodcock
#526
Yes and for your use. I gather CSO has abandoned everything else.
May 8, 2013 6:11 PM
#527
Is there still a background/summary document coming? Thats a key part of the rollout
tomorrow. Id write it myself, but dont have access to the reports.
May 8, 2013 6:18 PM
To: Chris Woodcock
Cc: Johanna Quinney
#528
My understanding is not but we can push her. In fairness to her, we dont know where the
Liberals are at the moment and the committee cannot issue anything publicly unless both
sides sign off. Tkachuk could on his own but
Ill ask her to work pull something together in any event.
May 8, 2013 6:19 PM
Cc: Johanna Quinney
Ok. Have you seen Tkachuks proposed statement for the Senate?
147
#529
May 8, 2013 6:19 PM

To: Chris Woodcock
Cc: Johanna Quinney
#530
No. will ask for that now.

May 8, 2013 6:19 PM
From: Johanna Quinney
To: Christopher Montgomery; Chris Woodcock
#531
DRAFT May 9, 2013

We are committed to ensuring that all expenses are appropriate, that the rules
governing these expenses are appropriate and to report back to the public on these
matters. Today this promise has been met by the committee.
The audits indicate that the rules governing expenses were unclear and Internal
Economy has taken significant steps to strengthen these rules.
Senator Duffy respects taxpayers and did the right thing by repaying money to
ensure that his expenses are appropriate.
The committee will now recover the living expenses claimed by Senators Harb and
Brazeau.
The auditors made it clear there is no need for these matters to be referred to a third
party.
We committed to tightening the rules in an effort to make the Senate more
accountable and today the committee has fulfilled this obligation.
148
May 8, 2013 7:08 PM

To: Nigel Wright; Patrick Rogers; Andrew MacDougall
Subject: Fw: Any signs of products for tomorrow?
#532
I think this statement captures the key message for tomorrow. This would be Senator
LeBretons statement outside the Senate, followed by a short Q&A. Let me know if you have
any comments or changes. I have a statement from Duffy I am also reviewing.
DRAFT May 9, 2013
We are committed to ensuring that all expenses are appropriate, that the rules
governing these expenses are appropriate and to report back to the public on these
matters. Today this promise has been met by the committee.
Today we received the report of the Senate Committee on Internal Economy on
travel and expense policies as well as the reports on expenses claimed by Senator
Harb, Senator Brazeau and Senator Duffy. The independent audits conducted by
Deloitte are included in these reports.
Deloitte found that the Senates rules governing expenses were unclear. In response
to this finding, the Senate adopted today a number of meaningful changes that will
improve internal controls over the claiming of expenses and ensure that these costs
are accounted for in a manner that provides Canadian taxpayers with the
transparency and accountability they deserve. We did so against the objections of
Liberal Senators who wanted to protect the current rules.
Senator Duffy approached the Committee a few number of months ago in order to
voluntarily repay all of his expenses. This repayment has been accepted and the
Senate considers the matter closed.
In the remaining two cases, the Committee has found that Senator Harb and Senator
Brazeau claimed expenses to which they were not entitled. The Senate will take the
necessary steps to immediately recover these funds on behalf of taxpayers.
I would be happy to take your questions.
Q. There is a quarter of a million dollars in questions: why arent you calling in the RCMP?
A. We asked an independent auditor to look at these claims. The audits found that the
Senates rules werent clear and we are fixing those rules. We will be taking the necessary
action to recover the money from Senators Harb and Brazeau.
Q. What steps will the Senate take to recover the money?
A. The last time a Liberal Senator had issues with expenses, the Senate garnished his salary.
That would be one of the options in this case if it came to that.
Q. Why would you let the Senate investigate itself?
A. The Committee looked to Deloitte to provide expert, independent findings on this matter.
Deloitte found that the rules are unclear and we are fixing those rules in response.
Q. When can we expect Senator Wallins audit to be made available to the public?
A. Thats something that is being looked at by the Committee. Im not going to speculate.
Q. Is this just a whitewash to protect Senator Duffy?
A. Senator Duffy approached the Committee a few months ago in order to voluntarily repay
all of his expenses. This repayment has been accepted and the Senate considers the matter
closed. Deloitte found that the rules are unclear, and we are fixing those rules.
149
May 8, 2013 7:11 PM

From: Nigel Wright
To: Chris Woodcock; Patrick Rogers; Andrew MacDougall
#533
I think that this is really quite good.

May 8, 2013 7:59 PM
To: Christopher Montgomery; Johanna Quinney
What do you think about this version:
[Version of Draft from May 8, 2013 7:08 PM above]
150
#534
May 8, 2013 8:35 PM

#535
Here is the statement Duffy wants to issue tomorrow. Im fine with everything but the fourth
and fifth paragraphs which proclaim his innocence. Im worried that this implausible
statement will prompt some kind of retaliation from CSO or Tkachuk. Nigel am I able to say
that this goes against the deal we have had to date? The best possible reaction from Senator
Duffy tomorrow would be to remind people that he voluntarily repaid and say nice things
about transparency.
Statement by Senator Mike Duffy
CAVENDISH, PEI In recent months, I have heard and understood the concerns of
Canadians about Senators expenses. When questions like these arise, involving those
entrusted with the wise use of tax dollars, Canadians deserve nothing but the highest
standards of transparency and clarity in response. These questions go beyond mere rules and
administration, and strike at the high standards of integrity Canadians expect of Parliament.
The Deloitte audit of expenses claimed by me and other senators has been a fair, impartial
effort by a credible third party to deliver that level of transparency and clarity. This audit has
indicated that there is a lack of clarity in the Senate rules and definitions with regard to
residency and housing allowances. In this respect, the audit is consistent with the position I
have maintained since this controversy first arose.
But while the rules themselves may be unclear, my duty as a senator and as a custodian of
Canadian tax dollars is absolutely clear. The Deloitte audit revealed a single claim, totaling
$1050.60, which I erroneously claimed due to an administrative oversight. I should have
noticed the error at the time, but did not. That claim was repaid in March, prior to the
completion of the Deloitte audit, as part of a total reimbursement of just over $90,000. This
covered all of the expenses I was paid as a result of having to maintain two residences; one
on Prince Edward Island, another in Ottawa. I will not be seeking the return of any portion of
this reimbursement even though these expenses were claimed in good faith.
When I discussed these issues with my wife in February, we came to the conclusion that
repaying the $90 thousand was the right thing to do, regardless of the outcome of the audit
that was to come. It was the right decision then, and it is the right decision now. I can only
effectively represent the interests and values of the people of Prince Edward Island if I have
earned their trust and respect. I am honoured to serve the people of my home province, and
with the actions I have taken, I feel confident I can look them in the eyes and assure them I
am doing so with integrity. With these matters now dealt with, my focus going forward will
remain: to be the most effective representative I can be for the benefit of Islanders.
I am pleased the Senate has decided in light of Deloittes findings, to now clarify the rules
and definitions with respect to residency and housing allowances. This is a positive outcome
emerging from a regrettable set of circumstances, and I am pleased that a new set of Senate
rules will be in place for the benefit of Canadian taxpayers.
As a former journalist, I understand and respect the medias interest in this issue. I have
responded to these matters with my actions, as outlined above. I am declining any further
media requests.
Contact: Mlanie Mercer (613-947-4163)
151
May 8, 2013 8:42 PM

From: Nigel Wright
Subject: RE: Duffy Statement
#536
Ooops Chris. This is the statement that I saw from Goldy last weekend and I told him I
thought it was fine (it reflects a couple of changes I asked for). I wanted him to make clear
that the egregious claim of the $1050 was made erroneously. Otherwise, it was potentially a
fraud (claiming per diems while on a cruise) as it turns out it was an administrative error. I
do think that he made the other claims in good faith, believing it to be the standard practice.
Good faith is the opposite of fraud, but it is not the opposite of mistake. I would not mind if
you were able to add albeit mistakenly or something like that after the good faith words.
May 8, 2013 8:43 PM
From: Michael Duffy
To: Chris Woodcock
Subject: Confidential draft statement for Thursday May 9th E&F
#537
Confidential draft statement for Thursday May 9th E&F

May 8, 2013 8:44 PM
Subject: RE: Duffy Statement
#538
I wasnt sure and am glad I asked. I will suggest that change to him.
May 8, 2013 8:46 PM
To: Michael Duffy
Subject: Re: Confidential draft statement for Thursday May 9th E&F
#539
Thanks for sharing this with me. I have only one suggestion, involving the addition of albeit
mistakenly at the end of this line:
I will not be seeking the return of any portion of this reimbursement even though these
expenses were claimed in good faith, albeit mistakenly.
I think everything is in good shape for tomorrow.
May 8, 2013 8:57 PM
From: Michael Duffy
To: Chris Woodcock
The media scrummed me outside the. Boie tonight. I hope I was positive enuf.
Mike
152
#540
May 8, 2013 8:57 PM

To: Michael Duffy
#541
Did it go ok at the Committee?

May 8, 2013 8:59 PM
From: Michael Duffy
To: Chris Woodcock
#542
Yes. Clear the libs are after me. I am back at 830a,.

Mike
May 8, 2013 9:18 PM
To: Michael Duffy
#543
They most certainly are. Done soon.

May 8, 2013 10:34 PM
To: Chris Woodcock
Cc: Johanna Quinney
#544
Just got off the phone with Tkachuk. He said it was tough slog but went fine. They got
through Harb and Brazeau and although there was no vote the report was unanimous. Both
will be adopted tomorrow after they go through the Duffy report.
Tkachuk, based on conversations with Furey, believes the Liberals will abstain from voting
on the reports (how that jives with their support tonight?) And that Cowan will say tomorrow
that the committee has done what was asked of it and did a good job but that they should be
referred to independent outside body without using the words police or rcmp.
To that, we can respond that the issues were referred to an outside authority the reputable
firm of Deloitte and that we have their reports and have responded accordingly.
May 9, 2013 10:38 AM

To: Nigel Wright
Subject: Duffy
#545
Hi Nigel Is there any way we can get Duffy to stay away and most importantly avoid any
media contact. By his appearance at Internal Economy he has really complicated our day!
Thanks Marjory
153
May 9, 2013 10:54 AM

From: Nigel Wright
Subject: Re: Duffy
#546
We are on it.
May 9, 2013 10:57 AM
From: Nigel Wright
To: Patrick Rogers; Chris woodcock
Subject: Re: Duffy
#547
I am unable to follow up on this right now. Goldy might be able to.

May 9, 2013 10:59 AM
To: Nigel Wright; Chris woodcock
Subject: Re: Duffy
#548
I will call Goldy.

May 9, 2013 11:16 AM
To: Nigel Wright; Nigel Wright
Subject: Re: Duffy
#549
I spoke to Duffy. He wont do any media and will stay away from the Chamber today.
May 9, 2013 2:20 PM
To: Michael Duffy
Subject: Re: Senate audit and per diems
#550
Id issue
154
May 14, 2013 10:45 AM

To: Jeremy Hunt; Carl Valle
Cc: Nigel Wright
Subject: Heads up CTV
#551
Hey guys
Heads up Fife has asked me if Nigel co-signed a loan to help Duffy pay off debts to Senate.
Ive spoken with Nigel: line Ill be delivering is:
Mr. Duffy had paid back the expenses in question and no taxpayer resources were used.
We reiterate our call on Liberal Senator Mac Harb to repay the51k he owes.
(Fife knows Party didnt pay Duffy sums. I am neither confirming, nor denying any Nigel
involvement).
Carl would recommend we sidestep CTV if theres any indication theyll ask on this topic.
Andrew
May 14, 2013 10:51 AM
From: Carl Valle
To: Jeremy Hunt; Andrew MacDougall
Cc: Nigel Wright
Subject: Re: Heads up CTV
#552
Would the PM know the actual answer to the question? Just in case he asks us.
May 14, 2013 10:54 AM
From: Nigel Wright
To: Jeremy Hunt; Andrew MacDougall; Carl Valle
Subject: Re: Heads up CTV
#553
The PM knows, in broad terms only, that I personally assisted Duffy when I was getting him
to agree to repay the expenses. On the specific matter, I did not co-sign a loan.
May 14, 2013 11:26 PM [10:26 PM Ottawa Time]
To: Michael Duffy
Subject: Emails?
#554
Can you get me any emails you sent on February 20 and the few days after that have
anything to do with the fife story? Need to figure out the extent of info available and have
some ability to fact check.
May 14, 2013 10:29 PM
From: Michael Duffy
To: Chris Woodcock
Subject: Re: Emails?
#555
will look. have u heard anything more from him? mike
155
May 14, 2013 10:30 PM

To: Michael Duffy
#556
Have you seen the story? Someone is showing Fife your emails.
@natnewswatch: Duffy made secret deal with Harpers chief of staff during audit
http://t.co/ohQuKc4Mfj #cdnpoli
May 14, 2013 10:30 PM
To: Michael Duffy
#557
Can we start with this email please

In a Feb. 20 email, Duffy said Wright worked out a scenario where all of his claimed
living expenses would be covered, including cash for the repayment.
May 14, 2013 10:47 PM
From: Michael Duffy
To: Chris Woodcock
Subject: Feb 20th memo
#558
Janice: 20 Feb 2013

Before we chat Thursday, an update on today.
Mary and I copied and redacted my 4 years of diaries; added a summary of my days in PEI,
and pics of the cottage under construction etc. and sent it to Nigel by Purolator.
We were having freezing rain. But barring a storm delay, he should have it Thursday
morning. Nigel called last night. I have more details below, but there are two headlines:
1: He said he had heard that Deloitte might make a ruling on me next week, based on what
they had seen from The Senate, without hearing from us.
2: He said the steering committee of Internal Economy was preparing to issue their own
report early next week of the issue of residency. I.e.: They would trump Deloitte by saying
that their analysis of my health card etc. showed I was in violation if the rules and I wasnt
eligible to sit as a Senator from PEI.
During the day I had several calls.
Sen. Vern White, former Ottawa Police Chief called, and said he wanted to chat. I said I was
on deadline. Too busy.
David Tkachuk called to say that if I would write a letter saying I had made an error, and
offering to re-pay, the committee would agree to pull my case from Deloitte. . I told him I
had not made a final decision, but as they had sent me to Deloitte over my string objections,
they would have to wear it.
Im sure he reported this to Nigel.
Then my old personal friend Angelo Persichilli, who is expecting an appointment called,
urging the same thing. You will be all alone. Your party against you, the Libs against you,
the media against you. I said; I admire Harper, but I have to able to look myself in the mirror,
etc.
[Continued below]
156
May 14, 2013 10:47 PM

From: Michael Duffy
To: Chris Woodcock
Subject: Feb 20th memo
#559

Then Nigel called tonight. I told him what I had sent. He was expansive, saying we (PMO)
had been working on lines and a scenario for me, that would cover all of my concerns,
including case for the repayment.
He then mentioned days on PEI, and I read him the totals from my document. I said any busy
MP or Senator would be pressed to have more days in their ridings. (Ill look at your diaries
with care when they arrive. Maybe youre right. But my sense is Deloitte will find against
you, I then said; if that happens, Ill call my bank. I did NOT say I would re-pay.
Somewhere in the midst of this he said the steering committee of Internal Economy was
preparing to issue their own report on the issue of residency.
Ie: They would trumped Deloitte by saylng that their analysis if my file showed I was in
violation if the rules and I wasnt eligible to sit as a Senator from PEI.
I asked, where does this committee get the power to pronounce on these things? Sounds to
me like they are way out of their depth. No one gave them authority to make these findings
on their own. He said David Tkachuk, and Carolyn Stewart Olsen were the majority on the
steering committee and they wanted to do this.
I said nothing.
So thats the hammer. He didnt make a threat, he said he was trying to protect me from this
rogue subcommittee. But the treat seems obvious. You take the dive or this sub-committee
will throw you out on the residency issue before youve had any kind of hearing.
-He also said you had not seen the diaries, and seemed to imply that he was thus in a better
positon than you to determine whether or not I was entitled to the housing allowance.
May 14, 2013 11:20 PM
To: Michael Duffy
Subject: Re: Feb 20th memo
#560
The story has two other quotes from sources:

1. Sources told (Fife) that the deal involved Duffy reimbursing taxpayers in return for
financial help and a promise from the government to go easy on him.
Would any of your emails suggest that the letter is true (going easy)?
2. Meanwhile, Duffy refused to co-operate with the auditors. In one email he wrote: I
stayed silent on the orders of the PMO.
Can I get that email please? What was the context?
May 14, 2013 11:27 PM
To: Michael Duffy
Subject: Re: Feb 20th memo
#561
In terms of the Globe, you should stick to the same answer you gave Fife: that you repaid,
but no taxpayer money was involved.
157
May 16, 2013 6:33 AM

#562
From: Simon Fecteau Labb
To: [undisclosed]
Subject: Nigel Wright wrote personal cheque for $90K to repay Mike Duffys expenses
[News Article, Nigel Write wrote Personal Cheque for $90K to repay Mike Duffys expenses,
CTV News, May 15, 2013] [Appendix A, Tab 31]
158
Email Attachments
Tab
December 4, 2012, 8:51. Email #6:
Senator Mike Duffy claims living allowances despite being Ottawa resident
since the 1970s, by Glen Mcgregor, Ottawa Citizen
February 8, 2013, 11:06 am. Email #42:

Letter dated February 8, 2013 from Janice Payne to The Honourable David Tkachuk
Re: The Honourable Senator Michael Duffy, Our File No. 16138-2
February 8, 2013. Email #44.

News Release from the Standing Senate Committee on Internal Economy, Budgets
and Administration. External Auditors to Review Residency Declarations.
February 8, 2013, 2:53 pm. Email #45.

Senate Announces Outside Audit for 3 Senators, by Leslie MacKinnon, CBC News

The Issue isnt Just about Duffy, Letters to the Editor, by David Bulger, The Guardian

Duffy Housing Flap raises Questions about Wallins Eligibility to sit in Senate, The
Canadian Press

Housing Flap Plaguing Duffy, Wallin raises questions about Senate Eligibility, by Joan
Bryden and Steven Rennie, The Canadian Press

Letter dated February 11, 2013 from Marjory LeBreton to The Honourable David
Tkachuk and The Honourable George Furey.

Letter dated February 13, 2013 from Michel Patrice to The Honourable Michael Duffy

Letter dated February 14, 2013 from Janice Payne to Gary Timm. Re: Deloitte Audit of
Expenses Claimed by Senator Michael Duffy, Our File No.: 16138-2
10
February 15, 2013 11:01 am. Email #91.

Letter dated February 14, 2013 from The Honourable David Tkachuk to Janice Payne.
Re: The Honourable Senator Michael Duffy, Your File No. 16138-2
11
February 16, 2013 4:43 pm. Email #104.

Draft for Discussion. Re: Residence Requirement of Senators
12

Memorandum to the Prime Minister from Patrick Rogers and Ben Perrin. Re: Senate
Residency Issue
13

Letter dated February 20, 2013 to Benjamin Perrin from Janice Payne. Re: Senator
Michael Duffy, Our File No. 16138-2
14

Letter dated February 20, 2013 to The Honourable David Tkachuk from Janice Payne.
Re: Senator Michael Duffy, Our File No. 16138-2
15

Letter dated February 21, 2013 to Gary Timm from Janice Payne. Re: Deloitte Audit of
Expenses Claimed by Senator Michael Duffy, Our File No,: 16138-2
16

Letter dated February 21, 2013 from Gary Timm to Janice Payne. Re: Audit of Expenses
Claimed by Senator Michael Duffy, Your File No.: 16138-2
17
Letter dated February 22, 2013 from Michel Patrice to Janice Payne. Re: The Honourable
Senator Michael Duffy, Your File No. 16138-2.
18
Media Lines, dated February 22, 2013. Statement by The Hon. Mike Duffy, Senator,
Cavendish PEI.
19

Sen. Mike Duffys repayment tab could approach $90,000, by Bruce Campion-Smith,
The Toronto Star.
20

Mike Duffys housing allowance sideshow deconstructed 80 days to a non-apology:
Tim Harper, by Tim Harper, The Toronto Star.
21

Letter dated February 27, 2013 from David Tkachuk to Michael Duffy.
22
March 7, 2013 12:51 pm. Email #325.

Mandate provided to Deloitte from the Senate.
23
March 20, 2013 4:06 pm. Email #354.

Letter dated March 20, 2013 from Michel Patrice to Janice Payne. Re: The Honourable
24
March 22, 2013 3:55 pm. Email #394.

Letter dated February 27, 2013 from David Tkachuk to Michael Duffy, and letter dated
March 25, 2013 from David Tkachuk to Michael Duffy.
25
March 26, 2013. Email #427.

Letter dated March 26, 2013 from Janice Payne to The Honourable David Tkachuk. Re:
Senator Michael Duffy, Our File NO. 16138-2.
26
April 3, 2013 3:41 pm. Email #430.

Letter dated April 3, 2013 from Arthur Hamilton to Janice Payne. Re: Agency Matter,
Your File No. 16138-2.
27
April 18, 2013 4:03 pm. Email #432.

Letter dated April 18, 2013 from Michael Duffy to David Tkachuk
28
April 20, 2013 11:01 am. Email #462.

29
April 24, 2013 4:25 pm. Email #474.

Letter dated April 24, 2013 from David Tkachuk to Mike Duffy.
30
May 16, 2013 6:33 am. Email #561.

Nigel Wright wrote Personal Cheque for $90K to repay Mike Duffys expenses,
CTVNews.
31
May 26, 2013 8:53 am. Email #562

Harper to face questions in House of Commons for first time since chief of staff quit over
Senate spending scandal, Michael Woods, PostMedia News
32
Email Attachments
Tab
December 4, 2012, 8:51. Email #6:
Senator Mike Duffy claims living allowances despite being Ottawa resident
since the 1970s, by Glen Mcgregor, Ottawa Citizen
February 8, 2013, 11:06 am. Email #42:

Letter dated February 8, 2013 from Janice Payne to The Honourable David Tkachuk
Re: The Honourable Senator Michael Duffy, Our File No. 16138-2

News Release from the Standing Senate Committee on Internal Economy, Budgets
and Administration. External Auditors to Review Residency Declarations.

Senate Announces Outside Audit for 3 Senators, by Leslie MacKinnon, CBC News

The Issue isnt Just about Duffy, Letters to the Editor, by David Bulger, The Guardian

Duffy Housing Flap raises Questions about Wallins Eligibility to sit in Senate, The
Canadian Press

Housing Flap Plaguing Duffy, Wallin raises questions about Senate Eligibility, by Joan
Bryden and Steven Rennie, The Canadian Press

Letter dated February 11, 2013 from Marjory LeBreton to The Honourable David
Tkachuk and The Honourable George Furey.

Letter dated February 13, 2013 from Michel Patrice to The Honourable Michael Duffy

Letter dated February 14, 2013 from Janice Payne to Gary Timm. Re: Deloitte Audit of
Expenses Claimed by Senator Michael Duffy, Our File No.: 16138-2
10

Letter dated February 14, 2013 from The Honourable David Tkachuk to Janice Payne.
Re: The Honourable Senator Michael Duffy, Your File No. 16138-2
11

Draft for Discussion. Re: Residence Requirement of Senators
12

Memorandum to the Prime Minister from Patrick Rogers and Ben Perrin. Re: Senate
Residency Issue
13

Letter dated February 20, 2013 to Benjamin Perrin from Janice Payne. Re: Senator
Michael Duffy, Our File No. 16138-2
14

Letter dated February 20, 2013 to The Honourable David Tkachuk from Janice Payne.
Re: Senator Michael Duffy, Our File No. 16138-2
15

Letter dated February 21, 2013 to Gary Timm from Janice Payne. Re: Deloitte Audit of
Expenses Claimed by Senator Michael Duffy, Our File No,: 16138-2
16

Letter dated February 21, 2013 from Gary Timm to Janice Payne. Re: Audit of Expenses
Claimed by Senator Michael Duffy, Your File No.: 16138-2
17
Letter dated February 22, 2013 from Michel Patrice to Janice Payne. Re: The Honourable
18
Media Lines, dated February 22, 2013. Statement by The Hon. Mike Duffy, Senator,
Cavendish PEI.
19

Sen. Mike Duffys repayment tab could approach $90,000, by Bruce Campion-Smith,
The Toronto Star.
20

Mike Duffys housing allowance sideshow deconstructed 80 days to a non-apology:
Tim Harper, by Tim Harper, The Toronto Star.
21

Letter dated February 27, 2013 from David Tkachuk to Michael Duffy.
22
March 7, 2013 12:51 pm. Email #325.

Mandate provided to Deloitte from the Senate.
23
March 20, 2013 4:06 pm. Email #354.

Letter dated March 20, 2013 from Michel Patrice to Janice Payne. Re: The Honourable
24
March 22, 2013 3:55 pm. Email #394.

Letter dated February 27, 2013 from David Tkachuk to Michael Duffy, and letter dated
March 25, 2013 from David Tkachuk to Michael Duffy.
25
March 26, 2013. Email #427.

Letter dated March 26, 2013 from Janice Payne to The Honourable David Tkachuk. Re:
Senator Michael Duffy, Our File NO. 16138-2.
26
April 3, 2013 3:41 pm. Email #430.

Letter dated April 3, 2013 from Arthur Hamilton to Janice Payne. Re: Agency Matter,
Your File No. 16138-2.
27
April 18, 2013 4:03 pm. Email #432.

28
April 20, 2013 11:01 am. Email #462.

29
April 24, 2013 4:25 pm. Email #474.

Letter dated April 24, 2013 from David Tkachuk to Mike Duffy.
30
May 16, 2013 6:33 am. Email #561.

Nigel Wright wrote Personal Cheque for $90K to repay Mike Duffys expenses,
CTVNews.
31
May 26, 2013 8:53 am. Email #562

Harper to face questions in House of Commons for first time since chief of staff quit over
Senate spending scandal, Michael Woods, PostMedia News
32

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JANUARY 2012

January 5, 2012, 3:21 pm

December 4, 2012, 8:51 am

December 5, 2012, 9:12 pm

Good advice it is none of their GD business.

Fyi. I did not speak to the pei health min. Mike

February 2, 2013 11:44 am

Hang in there Mike. I will get your back.

February 4, 2013 5:10 pm

February 6, 2013 6:30 pm

February 6, 2013 8:54 pm

As a Prince Edward Islander, born and bred, I am proud to represent my province

February 7, 2013 5:40 am

External Auditors to Review Residency Declarations

February 7, 2013 5:53 pm

Thanks, this is very helpful context.

February 7, 2013 6:40 pm

Apparently David Tkachuk has this worked out.

FYI. This is manageable.

February 7, 2013 9:22 pm

Thanks. Note theres a word missing here (any or the):

Thanks Chris. Im not going to help Mike draft it!!

I presume you are getting these also

February 8, 2013, 11:06 am

Thank you. Marjory LeBreton.

External Auditors to Review Residency Declarations

February 8, 2013, 3:02 pm

February 8, 2013, 10:29 pm

February 11, 2013, 11:33 am

Dear Ms. Joseph

February 11, 2013, 1:46 pm

Here is an update on Senate conversations that I have had.

February 11, 2013, 3:44 pm

Dear Mrs. Payne,

What does Marjorys letter mean for our talks?

February 11, 2013, 5:23 pm

Joanne and I are calling Sandy now.

February 11, 2013, 6:28 pm

Sandy sends apologies.

February 11, 2013, 7:06 pm

Possible bullet points for discussion with Nigel

February 11, 2013, 8:33 pm

See the third alternative right at the very end.

February 11, 2013, 8:51 pm

#1. Sen. Duffy feels hooped.

February 12, 2013, 6:14 am

February 12, 2013, 7:33 am

February 13, 2013, 1:21 am

Thanks so much. See u then. Mike

To: Michael Duffy

February 13, 2013, 6:03 pm

February 14, 2013 1:03 pm

February 14, 2013, 8:40 pm

February 14, 2013 9:53 pm

February 15, 2013 11:01 am

Mike, I will forward this to our inhouse counsel. Nigel

February 15, 2013 6:58 pm

I thought that might be the case. Following up.