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Conservative Sen. asks ethics officer to investigate offshore trusts

Conservative Sen. Vern White, the former Ottawa police chief, speaks to members of the media in Ottawa on Tuesday, Dec. 29, 2009.

OTTAWA – Conservative Sen. Vern White has written to the Senate Ethics Officer to ask for an inquiry into an alleged offshore tax trust worth nearly $2 million and belonging to the husband of Liberal Sen. Pana Merchant.

Citing the need for senators to be accountable and transparent, White, the former Ottawa police chief, said in a release he has asked Senate Ethics Officer Lyse Ricard to explore whether the trust does or did exist, as well as if the Conflict of Interest Code has sufficient guidelines.

“I share the growing sentiment that the Senate of Canada needs to be reformed,” White said in a statement. “I believe all senators should be accountable and transparent, to better protect Canadian taxpayers and instill confidence in the upper chamber.

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“Recent coverage of Senators under investigation for a variety of improprieties demonstrates the need for tough reforms, as well as Senators themselves holding each other to a higher standard.”

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Merchant was not immediately available to comment, her office said.

Earlier in the day, speaking more broadly about the Senate, White said the public expects senators to be accountable, ethical and transparent. “And if we haven’t done that, then we need to do that,” he said.

“Thirty-one years in policing, there wasn’t one time when I was embarrassed as result of behaviour of one of the people who worked with me, because of what they did,” he said.

“There are some days that I’m embarrassed by what some people have done, I have to be honest.”

White’s call for an inquiry stems from an April CBC report that it obtained documents that show Merchant is the beneficiary to a $1.7-million trust set up off shore by her husband, lawyer Tony Merchant.

“Given the nature of offshore trusts, often set up as tax havens, the story raises serious questions under the Conflict of Interest Code for Senators,” White said.

“Many in the Senate are encouraging reforms to better improve our accountability and transparency. I would hope that Senator Merchant provides clarity to the issue at hand, the subject of my letter as reported by CBC.”

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