January 18, 2005

Former privacy commissioner George Radwanski may have to pay back the federal government up to $30,000 for recent cash advances he received before his forced resignation this week.

Pat Martin, an NDP MP and member of the parliamentary committee investigating Mr. Radwanski's conduct while in office, confirmed Mr. Radwanski will be asked to pay back a $15,000 advance he claimed he needed to cover work-related expenses on his American Express credit card.

On top of that, the committee will look into two other cash advances, totalling another $15,000, for travel and vacation that was short-circuited by the committee hearings and Monday's resignation.

"Canadians have been outraged by this story and the reaction to Mr. Radwanski's settlement package of about $80,000 has not improved their mood," Mr. Martin said. "It is the committee's duty to make sure that any moneys that the former commissioner owes are paid back."

He said because of Mr. Radwanski's tax deal with the Canada Customs and Revenue Agency (CCRA) just before being appointed privacy commissioner in 2000, the committee must ensure the ex-commissioner is held accountable for his expenses.

"I don't think Mr. Radwanski deserves any kind of settlement package, but I don't have any control on that. But we can make sure he pays back what he owes," Mr. Martin said.

Canada's tax agency forgave about $540,000 in unpaid taxes one day before Mr. Radwanski became privacy commissioner in 2000. Documents revealed last week that on July 26, 2000, the CCRA gave final approval to an offer from Mr. Radwanski to pay $67,726 and, in exchange, $606,947 in outstanding tax bills were forgiven. On July 27, 2000, Mr. Radwanski was appointed privacy commissioner for a six-month term, which was renewed for another seven years on Oct. 19.

The settlement on the cash advances will be one of the issues in the committee report, which examined, among other things, how Mr. Radwanski and one of his executives spent more than $500,000 on meals and trips over the past two fiscal years.

Mr. Martin said the committee was told Mr. Radwanski received the $15,000 advance last year with the understanding he would need to eventually produce receipts.

The committee heard from witnesses who described an angry Mr. Radwanski insisting he had been shortchanged because of errors his staff had made on expense forms, Mr. Martin said.

"He was arguing it was their fault and they had made a mistake. But we heard there wasn't a mistake and he owed them $15,000," Mr. Martin said.

In March, as the 2002-03 fiscal year drew to an end, Mr. Radwanski paid back $15,000 to the finance department when he was reminded that he had not produced the receipts. However, in early April, 10 days into the new fiscal year, Mr. Radwanski reclaimed the $15,000 advance out of the office's budget.

As well, Mr. Martin said Mr. Radwanski was in the practice of asking for cash advances for upcoming travel and would book the trips himself on his own credit cards.

He said the committee's investigation forced Mr. Radwanski to cancel his flight to Buenos Aires. Mr. Martin said the approximately $7,000 cash advance the commissioner received for the trip will have to be paid back as well.

On top of that, Mr. Radwanski also received a cash advance for an upcoming vacation this summer for as much as $8,000. Mr. Martin said the committee will look into the vacation pay to see if it was part of the government's settlement package with the commissioner before he agreed to step down.