Mike Duffy trial: Gerald Donohue says senator didn't receive kickbacks

Theman who received $65,000 in contracts from his friend Mike DuffytestifiedFriday that the senator never received any sort of financial kickback.

The Crown has alleged Duffy signed contractswith his friendGeraldDonohue, a former television technician and human resources professional,as a way to funnel cash to certain contractors, some of whom provided services considered inappropriate or inadmissible under Senate rules.

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Donohue, who testified for the fourth day in the Ontario court of justice via video link from his home in Carp, Ont., said "not a penny" of Senate money was paid back to Duffy.

Duffy has pleaded not guilty to 31 charges of fraud, bribery and breach of trust related to his travel, housing and office expenses.

Donald Bayne, Duffy's defence lawyer, pointed to evidence that showed out of the $65,000 in contracts, Donohue paid out more than $40,000 from the accounts of two companies Maple Ridge Media and Ottawa ICFowned byhis wife, Gail, and son Matt,.

Those cheques went to third-party service providers at Duffy's direction, including speech writers, a fitness trainer, a photo shop and a makeup artist.

"Most of that money was paid to Senate-approved contractors, correct?"Bayneasked Donohue. "Yes,"Donohuesaid.

"You didn't retain any of the $40,000, did you?" Bayne asked."Absolutely not," Donohue said.

"None of that $65,000 or none of that $40,000 waspaid to Senator Duffy, correct?" Bayne asked. "Not a penny," Donohue said,"henever got anything out of ourcompanies."

As part of his consulting services,Donohuesaid, he carried out research on aging, mostly by searching on theinternet, and for a project on "Why I'm a Conservative."

He said he spent more than 100 hours a year on the phone with Duffy bouncing around ideas and providing advice, and another 50 hours actually carrying out research.

The court heard that Donohue's companies retained, at most,$25,098 for his consulting work for Duffy.Bayne argued that the amount wasrelatively meagre considering it was paid outover a four-year period.

Baynedid the math for Donohue, calculating that the consultant pocketed just over $6,000 a yearor roughly $41 an hour for his 150 hours of work for the senator.

"Not an exorbitant amount," Bayne said. Donohue concurred.

Donohue also testified, when asked,that there were no secret chequesor untraceable cash payments.

'Little or no apparent work'

The RCMPhavealleged Donohue received the contracts for doing "little or no apparent work."

But Bayneargued Friday that at no time did Senate finance officials raise any red flags about the work Donohue was doing for Duffy.

Bayne also introduced into evidence Donohue's contract with Duffy, which was approved by Senate officials. The contract was wide-ranging, authorizing Donohueto do writing and research work but also "any other duties that may arise."

The Crown has made the case that no substantial services were rendered and that Donohue was not well qualified to act as a consultant. But Bayne, during cross-examination, laid out evidence to bolster Donohue's credentials to serve as a consultant for the senator.

Liberal-appointed Senator George Furey is expected to be the Crown's last witness and is slated to provide evidencenext Tuesday.

There is no confirmation yet on when Duffy will testify when the defence begins its case.

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