Manitoba Tories say vehicle rental a legitimate 2023 election expense, despite ties to intimacycoach - Action News
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Manitoba

Manitoba Tories say vehicle rental a legitimate 2023 election expense, despite ties to intimacycoach

A curious election expense that appeared to suggest Manitoba's Progressive Conservatives paid for the help of anintimacy coach was actually the result of the wrong letterhead on aninvoice, the party says.

NDP calls for investigation after former PC employee alleges party was falsifying financial statements

A woman stands behind a podium, speaking. She's lit up against a dark room.
Former PC leader Heather Stefanson gives her concession speech after her party was defeated in the 2023 election. A former party employee alleges the Tories engaged in questionable accounting practices during that campaign. (Prabhjot Singh Lotey/CBC)

A curious election expense that appeared to suggest Manitoba's Progressive Conservatives paid for the help of anintimacy coach was actually the result of the wrong letterhead on aninvoice, the party says.

The expense came to lightafter a former PC employee flaggedquestionable accounting practices, includinganinvoice fora "car rental" from a company whose website touted no vehicles, but ratherthe services of an intimacy coach.

The Winnipeg Sun published astory about the expense on Sunday, prompting thegoverning New Democrats to file a complaint with the province's election commissioner alleging the Tories forged financial documents related to last year's election campaign. The NDP said those actionsviolatethe province's ElectionFinancing Act.

Christopher Kamanga, the former PC employee, told the newspaperhe brought his concerns to senior party officials on several occasions, but his complaints were brushed off.

"Can you imagine if donors knew their funds were used to pay for this," Kamanga asked party president Brent Pooles in one email, the newspaper reported.

The invoice was issued by a company called Lucid Vitality, a sole proprietorship owned by Chelsy Brause. The website listed on the invoiceadvertised the services of a sex and intimacy coach.

'Falsifying the financial record'

When Kamanga pressed party CEOMichele Halversonon the expense, he questioned in his email how the party could approve an election expense for a vehicle when the company appeared to provide different services.

He also wondered how the party could spend $3,800 on a vehicle rental for an election campaign that lasted four weeks.

"Recording this transaction as a car rental would be falsifying the financial record," Kamangasaid in an Aug. 22 email.

Halverson said in response the company owner"obviously used the wrong letterhead on this invoice" and the "correct one" would be sent as soon as possible.

Kamanga said he never received the corrected invoice.

His employment with the Tories ended in February 2024. He hassince filed a complaint with Manitoba's employment standards branch where, among other things, he alleges he wasn't paid for vacation time or severance, the newspaper reported.

Attempts by CBC Newsto reach Kamangaon Monday were not successful.

Interim leader addresses discrepancy

Interim PC Leader Wayne Ewaskosaid the party indeed rented a vehicle,which the Tories said wasused by campaign volunteers travelling to election events and announcements, but the intimacy coach had other business interests.

"Therequest was made by the CEO of the party to get a corrected invoice with thecorrect business on the letterhead," he said.

The proper invoice was forwarded to Elections Manitoba in time for itsreview, the Tories said.

Ewaskoaddedhe's disappointed the party appeared to dismiss the former employee's complaints.

A man in a black suit, grey shirt and striped blue tie looks on.
Interim Progressive Conservative Leader Wayne Ewasko said the party has to do a better job with its accounting practices and in being accountable and transparent to Manitobans. (Darin Morash/CBC)

Kamangaalso alleged the Toriesengaged in other questionable accounting practices, the Winnipeg Sun said. Severalinvoices lacked proper documentation, such as contact information, GST numbers, or the inclusion of the GST, while three invoices were identical, aside from the invoice number.

The newspaper said some of the questionable invoices were from a"company affiliated with a well-known politician," but it didn't elaborate.

Ewasko said theaccounting mishaps are frustrating.

"We need to do better. We need to do far better. We need to be more transparent and accountable to not only our accounting practices, but at the same time making sure that we're transparent to our members."

He said senior party officials metto discuss the newspaper's reporting and understand what transpired.

Ewasko said the Tories would scrutinize theiraccounting practices as part of thecommittee he's previouslytasked with reviewing the party'sloss of the 2023 provincial election and 2024 byelection in Tuxedo.

A man in a blue suit, white shirt and checkered tie looks forward from his position behind a podium.
Manitoba Finance Minister Adrien Sala said he worries public dollars were used to subsidize PC expenses that may not have been legitimate. (Darin Morash/CBC)

During question period Monday, the NDP repeatedly brought up the allegations of falsified campaign expenses,while the PCs triedto hammer the government on crime.

Speaking before Ewasko, Finance Minister Adrien Sala said he was concerned the Tories broke the law, and the party would have received a public subsidy for the money. In Manitoba, eligible political parties receive a rebate of 25 per cent of their election spending reimbursed.

Sala said the Tories have an obligation to prove the expense was legitimate.

A copy of the correctedinvoice, which the PCs provided to CBC News, lists "Chelsy Brause" in the letterhead, rather than thecompany"Lucid Vitality." The description is for a "car rental" and no other details are provided.

The NDP asked elections commissioner Bill Bowles to investigate the alleged violation. He told the NDPMondayhis office would look into the complaint.

In response to a question from CBC aboutwhether his involvement risesto the level of a formal investigation, Bowles said in an emailed statement he does notcomment on whether he is investigating any particular matter.

Corrections

  • An earlier version of this story said Bill Bowles's office didn't respond to CBC's request if its involvement rises to the level of a formal investigation. In fact, he emailed a response which was not noticed because it was redirected to junk mail.
    Oct 09, 2024 6:38 PM CT