Constituency Allowance Scandal
On June 21, 2006, Williams announced that he had requested Byrne's resignation as a result of an audit of the financial records of the House of Assembly by the Auditor General of the province. Byrne was forced to step down after the Auditor General expressed concern to the Speaker of the House of Assembly over financial issues. Byrne left cabinet that day.
On June 22, 2006, the provincial Auditor General released a report on Byrne's constituency allowance claims in the 2003 and 2004 fiscal years. While Byrne had been eligible for a maximum claim of $31,500 for that period, the Auditor General had found evidence that he had claimed a total of $326,642 in excess of that amount. The Auditor General recommended that the case be turned over to the Department of Justice for review.
The Auditor General also reported, on June 22, that three other members of the House of Assembly were being investigated for similar actions, one former Liberal member, one sitting Liberal member, and one sitting New Democratic Party member. The finance director of the Assembly, Bill Murray, was also suspended. As the scandal involved all political parties, the Conservatives did not suffer a backlash in the 2007 election and actually increased their share of the popular vote and seat count.
On June 23, the Royal Newfoundland Constabulary began a criminal investigation based on the findings of the Auditor General. Byrne, three other Newfoundland politicians and a senior civil servant in the House of Assembly were subsequently indicted under the Criminal Code of Canada, on fraud-related offenses.
On November 28, 2006, Byrne announced his resignation from provincial politics, effective January 1, 2007.
Read more about this topic: Ed Byrne (politician)
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