WE scandal result of legal 'misinterpretation,' says lobbying commissioner

Lobbying Commissioner Nancy Bélanger told the Commons Ethics Committee that WE Charity simply misunderstood the laws under the Lobbying Act when they failed to disclose a variety of relationships with federal staff, politicians, and aides, according to Blacklock's Reporter.

Executives from WE Charity testified that they believed themselves to be exempt under the Lobbying Act to disclose their relationships with politicians when they began negotiating with the federal government to receive grant money. The grant was supposed to go towards a summer volunteer program for students who could not find work during the pandemic. WE Charity did not register as lobbyists until August of this year, well after the scandal was revealed.

The deal fell apart shortly after its announcement, however, when it was revealed that WE Charity had showered the friends and family members of Justin Trudeau with large payouts and all-expenses paid trips. Former Finance Minister Bill Morneau, a multi-millionaire who's daughter is employed by WE Charity, received over $41,000 in paid-for expenses when the organization took him to Kenya and Ecuador.

Morneau resigned in the wake of the scandal after he failed to recuse himself from the meeting where the decision to provide the grant to WE Charity was made, but has since moved on to pursue a position at the Organization for Economic Cooperation and Development (OECD).

Other records later revealed that WE Charity representatives held meetings with federal officials at least 38 times.

"There seems to have been a misinterpretation of certain sections of the law," Bélanger said before the ethics committee. "I think there was a lack of understanding of the law."

Questioning Bélanger, NDP MP Charlie Angus asked "would you feel if you had enough evidence that this would be a case that could be referred to the RCMP?"

"I mean, they met with everybody," argued Angus. "It was right into the Prime Minister’s Office. This was pretty extensive."

Replying to Angus, Bélanger said "the threshold is not very high. When I do have reason to believe an offence has occurred once I’ve started looking into it, I will refer the matter."

Her answer did not seem to please Angus, who continued by asking if WE Charity is absolved of responsibility for registering as lobbyists after getting caught illegally lobbying the government. "They are not absolved," Bélanger replied.

"Media mentioned there had been a Lobbyist Registry filing and this would excuse everything," Bélanger continued. "When you decide to register, I want to encourage transparency. That does not mean this will stop my investigation, just because they registered."

Only one person has ever been found guilty of illegal lobbying under the Lobbying Act. Andrew Skaling, a Conservative staffer, pleaded guilty to violating the law in 2013 and was handed a fine of $7,500.