OTTAWA — Canada’s Consul General in New York knew about the federal government’s decision to purchase a new residence, but was not involved in the decision to do so, an official with Global Affairs Canada testified on Thursday.
A parliamentary committee is probing the department’s purchase of an almost $9-million luxury condo located on a famous slice of Manhattan real estate known as ‘Billionaires’ Row,’ to serve as the consul general’s new residence.
The Opposition Conservatives have decried the purchase as excessive, given the cost-of-living anxieties faced by Canadians. The party’s MPs also suggest the purchase of the new luxury condo was done to benefit the consul general himself, Tom Clark, a former political journalist who Conservatives MPs have labelled a “Liberal insider.”
Department officials have said the purchase was the result of a process that predated Clark’s arrival to the post last year. They have said it began back in 2014, when problems with the existing residence, which was bought back in 1961, were first identified.
The decision to buy a new residence came after it was determined that spending $2.6 million on renovations would not have solved all of the issues, according to officials. Instead, the department said purchasing a new one represents a savings of around $7.4 million, as it is also looking to sell the current one for $13 million.
Conservative and NDP MPs on the committee had called to hear from Emily Nicholson, who serves as director and chief of staff to the associate deputy minister of foreign affairs, to testify about conflicting emails she sent about the nature of Clark’s involvement.
Emails previously tabled as evidence show how Nicholson wrote to the former chief of staff of Foreign Affairs Minister Melanie Joly about why the department was selling the residence in the first place.
On June 17, Nicholson described both Clark and his staff as being “instrumental throughout this process,” with the “(head of mission) providing the greenlight for the selection of the new residence.”
The next month, after news of the purchase became public and the backlash ensued, Nicholson wrote back to Joly’s former staffer, outlining in greater detail the business case for both the sale and purchase.
Emails obtained by the National Post under federal access-to-information laws in between that time show Nicholson telling others that the branch in charge of overseeing the real estate transaction “did not flag” the purchase ahead of time for other department leaders, who did not tell the minister.
They also failed to mention that the nickname of the new location is “Billionaires Row,” which has resulted in the department making changes to its internal communications process, according to the correspondence.
In her July 25 email to Joly’s office, Nicholson wrote that neither Clark or the consulate “was part of the selection or approval process for the overall process or the property purchase.”
Testifying on Thursday, Nicholson said that “in hindsight, more precise language could have been used to avoid any misunderstandings.”
She outlined how she used the word “greenlight” to express how Clark “was prepared to accommodate” the department’s plan to move the official residence.
“The email did not state that the consul general was involved in the decision-making process, exercise influence or signed for any transactions related to the process.”
In previous testimony, Clark told MPs it was “untrue” that he was involved in the department’s decision to purchase a new residence.
Nicholson said on Thursday she took it upon herself to clarify matters and was not directed to do so, which Conservatives on the committee suggested was the case.
She said records from the branch that handles real estate show that while Clark was “aware of the process,” he not “involved” in the decision.
Michael Barrett, the Conservative’s ethics critic, pressed Nicholson about her email clarification, saying it was bigger than a typo or other grammatical error.
“That’s quite the reversal,” he said.
Joly is expected to appear before the committee to testify about the matter on Nov.5.
Her office recently confirmed to the National Post that the minister herself was not made aware of the purchase until July 12, the same day it was reported by the New York Post.
A spokesman said because the decision to sell the existing residence fell clearly within the department’s mandate and did not require direction or a decision by the minister, Joly was never briefed on the matter.
National Post
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