13 July 2012

Innu Controversy Widens #nlpoli

The controversy at the Innu Development Limited Partnership developed some political overtones on Thursday.

CBC reported that federal intergovernmental affairs minister Peter Penashue borrowed $25,000 from the partnership to finance his campaign in 2011. 

According to CBC, documents filed with Elections Canada by Penashue’s campaign showed the loan carried no interest charges.  CBC reported on Thursday that a spokesperson for Penashue’s office said that wasn’t correct:  the interest rate was seven percent.

CBC reported the loan initially in a story last year that showed Penashue outspent his opponent Todd Russell $115,000 to $37,000.

"I couldn't get the money from the bank," he said when asked the reason for that loan.

According to his filings with Elections Canada, Penashue has made a $10,000 repayment on the loan.

The Telegram also noted the curious loan that was reported as being interest free.

One thing is for sure: there isn’t any bank that would give him interest-free cash for a campaign.

There is, somewhere, a saying about stones and glass houses — and another one about “he who throws the first stone.”

There could be some interesting months ahead.

Interesting indeed..

For one thing, there’s no sign Penashue took the chance to correct the record about the interest rate charged on the loan in two media reports.