Mike Duffy trial: Crown grills key witness over cheques, contracts

Gerald Donohue, a former friend and colleague of Senator Mike Duffy, said his wife's companies took in up to $22,000 from the $65,000 in contracts he signed with the senator.

The ailing former television technician said he was paid to serve as a "consultant" to Duffy, but also carried out administrative duties issuing cheques to third parties on behalf of the senator. After paying out more than $40,000 and factoring in GST, the remainder of the $65,000 in contracts went to two companies owned by his wife Gail and son Matt, Maple Ridge Media and Ottawa ICF.

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"I would get invoices by mail, by email, or by direct instructions from Senator Duffy," he told the Ontario Court of Justice in testimony by video link from his home in Carp, Ont., on day 49 of Duffy's trial.

Previously, Donohue had estimated the amount netted by the two family companies was between $19,000 and $20,000, but today he said it could be $21,000 to $22,000 and acknowledged it could have even been $25,000.

Donohue's various health problems require his testimony to take place at his home and in short durations.

Crown prosecutor Mark Holmes went over various contractors that Donohue received invoices from and issued cheques to, in addition to a list that was presented by the Crown last week.

Donohue added four new names after going over his own records on the weekend: Nils Ling ($2,500), R.A. Brennan ($734.50), Sphyr Communications ($598.11) and the Receiver General, Parliamentary Boutique ($298.70).

Donohue could not recall whether payment to the Parliamentary boutique was made after receiving an invoice or on instruction from Duffy, but he had no idea what the payments were for. 

"I don't know. I guess whatever they sell there," he said.

'Difficulty' getting lump sums

Donohue also testified that in 2011 he began receiving $2,000 cheques monthly, because they were having "difficulty" getting lump sums in a timely manner from the Senate.

Duffy has pleaded not guilty to 31 charges of fraud, breach of trust and bribery related to Senate expense claims and a $90,000 repayment made in 2013 with a cheque from Nigel Wright, who was then-prime minister Stephen Harper's chief of staff at the time.

The Crown has alleged Duffy signed contracts with Donohue as a way to funnel cash to certain contractors, some of whom provided services considered inappropriate or inadmissible under Senate rules.

Donohue began his testimony on Thursday last week and told court he received payments through Maple Ridge Media and Ottawa ICF. He said he has never been an owner or employee of the companies, but that it would be a Revenue Canada "disadvantage" to have the payments from Duffy come directly to him.

In terms of service provided, Donohue said he carried out research on aging, mostly by searching on the internet, and for a project on "Why I'm a Conservative."

Donohue also testified that he cut cheques to third-party individuals and companies for services as "instructed" by Duffy, even though he was not authorized to sign cheques from his wife's companies.

Today, under cross-examination by defence lawyer Donald Bayne, Donohue was asked about his qualifications for the contracts. He outlined some past experience as a representative in the union for broadcast technicians, which included a letter presentation to Pierre Trudeau's federal Liberal caucus in 1977.

He also acknowledged that he has never visited the House of Commons or the Senate.

Donohue was also asked to provide details of his medical problems, which include treatments for heart conditions, diabetes and kidney failure. He said the ailments may have contributed to memory loss. 

Court has heard that Donohue issued cheques for services expensed by Duffy that included payments to an office volunteer, a makeup artist, a photo processing firm and a personal fitness trainer. ​

On Friday, former head of Senate finance Nicole Proulx returned to the witness box and conceded that policies around Senate travel and expense claims were outdated and riddled with "risk areas."

Outdated Senate policies

During a tough cross-examination from Duffy's defence lawyer, Donald Bayne, she acknowledged that one "very important" finding in a 2009 audit report was that information about policies was not well communicated or clearly understood by senators and their staff.

That report found policies were "outdated, inadequate or non-existent." Bayne's primary line of defence focuses on the premise that Senate policies and rules were loose and unclear, and that while some of Duffy's practices were unorthodox, they were not illegal.

Duffy is expected to testify in his own defence after the Crown wraps up its case, though a date has not yet been confirmed.

Court is adjourned until Wednesday, when Senator George Furey, who was vice-chair of the internal economy committee, is scheduled to testify. Donohue returns to testify Thursday afternoon.