OTTAWA — Senior leaders at Global Affairs Canada were not told that a $9-million condo the department purchased as a new residence for Canada’s consul general in New York was located in a famously posh Manhattan district known as Billionaires’ Row, an internal email shows.
Emails obtained by the National Post through federal access-to-information legislation provide a look into how officials handled questions over the controversial purchase, which the Conservatives have condemned as wasteful and have suggested was arranged by the Liberals as a special perk for former political reporter Tom Clark, now the consul general.
When the New York Post first broke the story on July 12 that Canada had purchased the pricey luxury condo, Global Affairs Canada was thrown into damage-control mode. The following day, Emily Nicholson, Global Affairs Canada director and chief of staff, sent an internal email explaining that a branch within the department known as the International Platform Branch, which manages Canada’s international real estate, had overseen the purchase but did not provide any heads up to the senior department leaders about the final decision.
“(The branch) did not flag this purchase in advance for deputies, which in turn meant we were unable to flag for (the minister’s office or Privy Council Office) ahead of the purchase,” she wrote.
Foreign Affairs Minister Mélanie Joly’s office told National Post that the minister only learned about the purchase on the same day the New York Post first reported the story.
The three-bedroom condo has been criticized for its price tag and exclusive address, as well as its opulent finishes, including a handcrafted copper soaking tub, and amenities such as a private pool with cabanas and a golf simulator. The condo replaces the previous consulate, which the government is now trying to sell for $13 million.
“While we did provide a rationale for the sale to (the minister’s chief of staff) in June … (the branch) did not flag the nickname of the new location as Billionaires Row,” adding that the rationale provided was “short” and focused on cost savings.
A parliamentary committee is investigating the purchase, which department officials have defended as necessary, citing problems with the previous consulate on Park Avenue in Manhattan, including accessibility issues and a lack of proper division between private and official spaces. It has owned the previous property since 1961 and last renovated it in 1982.
Fixing up the current residence would have cost $2.6 million, the department has said — more than the $1.8 million it initially estimated, before the project was delayed by the COVID-19 pandemic.
Officials say the renovations would not have solved all of the problems, which were first flagged in 2014, in what they characterize as being one of the most important residences Canada has in terms of diplomatic missions, given the number of events it hosts.
The department says that is ultimately why it opted instead to purchase a new residence at 111 West 57th St., which the department says represents a savings of $7.4 million.
In her email correspondence, Nicholson also raised how she and a deputy minister had already discussed the need for the branch to “systemize their information sharing” when it comes to purchases and sales “and to apply a media/political lens to that list, to prevent any surprises.”
Christopher MacLennan, who serves as deputy minister of international development, wrote back that the media would likely stay focused on the overall cost of the new residence.
“The savings from the move is unlikely to be persuasive,” he said, adding he believed the branch in question needed to provide a “fuller accounting” on how it chose the property, as the current public explanation did not “explain the rationale for the choice versus other options.”
After fielding questions from journalists Karolina Guay, an official within the department who has since been appointed as Canada’s ambassador to Chile, wrote on July 14 to David Morrison, the deputy minister of foreign affairs, that “hopefully it’s the last media call we receive on this.”
The department said in a statement it stands behind the purchase, which it said was the result of “thorough analysis, sound financial and operational management, and a focus on the long-term benefits and savings.”
A spokesman said officials were working to ensure transparency around the decision was being provided to Canadians, and confirmed that changes have been made to “internal processes” when it comes to communication.
“Internal steps have been accelerated to strengthen information sharing within the department on real property transactions,” wrote Jean-Pierre Godbout, which he specified “includes regular information sharing between the International Platform Branch and senior management of the department.”
“The department has already modified internal processes on information sharing and communication planning, to clearly communicate to the public the business case for decisions taken.”
National Post
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