Mike Duffy trial: Gerald Donohue says senator didn't receive kickbacks

The man who received $65,000 in contracts from his friend Mike Duffy testified Friday that the senator never received any sort of financial kickback.

The Crown has alleged Duffy signed contracts with his friend Gerald Donohue, a former television technician and human resources professional, as a way to funnel cash to certain contractors, some of whom provided services considered inappropriate or inadmissible under Senate rules.

• LIVE BLOG RECAP | Mike Duffy trial, Day 51
• Senator's friend defends credentials
• Donohue's contract deal avoided tax 'disadvantage'

Donohue, who testified for the fourth day in the Ontario court of justice via video link from his home in Carp, Ont., said "not a penny" of Senate money was paid back to Duffy. 

Duffy has pleaded not guilty to 31 charges of fraud, bribery and breach of trust related to his travel, housing and office expenses.

Donald Bayne, Duffy's defence lawyer, pointed to evidence that showed out of the $65,000 in contracts, Donohue paid out more than $40,000 from the accounts of two companies — Maple Ridge Media and Ottawa ICF — owned by his wife, Gail, and son Matt, .

Those cheques went to third-party service providers at Duffy's direction, including speech writers, a fitness trainer, a photo shop and a makeup artist.

"Most of that money was paid to Senate-approved contractors, correct?" Bayne asked Donohue. "Yes," Donohue said.

"You didn't retain any of the $40,000, did you?" Bayne asked. "Absolutely not," Donohue said.

"None of that $65,000 or none of that $40,000 … was paid to Senator Duffy, correct?" Bayne asked. "Not a penny," Donohue said, "he never got anything out of our companies." 

As part of his consulting services, Donohue said, he carried out research on aging, mostly by searching on the internet, and for a project on "Why I'm a Conservative."

He said he spent more than 100 hours a year on the phone with Duffy bouncing around ideas and providing advice, and another 50 hours actually carrying out research.

The court heard that Donohue's companies retained, at most, $25,098 for his consulting work for Duffy. Bayne argued that the amount was relatively meagre considering it was paid out over a four-year period. 

Bayne did the math for Donohue, calculating that the consultant pocketed just over $6,000 a year — or roughly $41 an hour — for his 150 hours of work for the senator. 

"Not an exorbitant amount," Bayne said. Donohue concurred.

Donohue also testified, when asked, that there were no secret cheques or untraceable cash payments.

'Little or no apparent work'

The RCMP have alleged Donohue received the contracts for doing "little or no apparent work."

But Bayne argued Friday that at no time did Senate finance officials raise any red flags about the work Donohue was doing for Duffy.

Bayne also introduced into evidence Donohue's contract with Duffy, which was approved by Senate officials. The contract was wide-ranging, authorizing Donohue to do writing and research work but also "any other duties that may arise."

The Crown has made the case that no substantial services were rendered and that Donohue was not well qualified to act as a consultant. But Bayne, during cross-examination, laid out evidence to bolster Donohue's credentials to serve as a consultant for the senator.

Liberal-appointed Senator George Furey is expected to be the Crown's last witness and is slated to provide evidence next Tuesday.

There is no confirmation yet on when Duffy will testify when the defence begins its case.

Can't see the live blog? Follow it here.