Penashue faces opposition accusations of "corruption" over "family ties" to Labrador hydro project
Opposition MPs on Thursday accused Intergovernmental Affairs Minister Peter Penashue of “corruption” for having “family ties” to a mega hydroelectric project in his home riding of Labrador that is waiting on a loan guarantee from Ottawa.
APTN National News
OTTAWA--Opposition MPs on Thursday accused Intergovernmental Affairs Minister Peter Penashue of “corruption” for having “family ties” to a mega hydroelectric project in his home riding of Labrador that is waiting on a loan guarantee from Ottawa.
The NDP and Liberal ethics critics called on Penashue to remove himself from any cabinet discussions around issuing the loan guarantee, which the Newfoundland and Labrador government hopes to secure so it can save millions of dollars off financing costs for the $7.4 billion Muskrat Falls project.
APTN National News reported Wednesday that Penashue’s brother and former business partners are bidding on and have landed contracts from the Muskrat Falls project.
“Let’s see if the minister might surprise us and rise in his place and explain today’s charges of corruption,” said Liberal Newfoundland MP Scott Andrews. “It’s the minister and his family connections and business connections that are reaping the benefits from the Muskrat Falls project. Why has he not removed himself from discussions around the loan guarantee to avoid this obvious conflict of interest?”
Ontario NDP MP Charlie Angus also hammered Penashue, linking the minister’s latest troubles with an election spending scandal currently under investigation by Elections Canada.
“He got a corporate donation from Pennecon who happened to be in business with his dear brother Max, who happened to score really big on the Muskrat Falls project and despite the family ties he was the political point man on that project,” said Angus. “So now that the loan guarantees are being finalized has that member recused himself from cabinet discussions about the Muskrat Falls project?”
Penashue was defended by David Anderson, parliamentary secretary for natural resources. Anderson ignored the calls for Penashue to recuse himself from discussions around the loan guarantee, and instead said Ottawa had no say over who got contracts.
Anderson said the government would continue to “move forward” on the loan guarantee.
“We have no role to play in awarding the contracts on this project,” said Anderson. “Our government continues to support this important project.”
Penashue also wrote a letter Thursday asking the ethics commissioner to re-examine his file.
