Gerald Butts faces the heat over SNC-Lavalin scandal: Will he help or hurt the PM?

When Gerald Butts announced his resignation as Justin Trudeau's principal secretary, his reasoningsuggested hefeared allegations springingfrom the then-burgeoningSNC-Lavalin controversy might be a distraction forthe prime minister.

"My reputation is my responsibility and that is for me to defend," he wrote in a statement. "It is in the best interests of the office and its important work for me to step away."

The scandalcentres around one key question:whether the prime minister and senior members of his team tried to pressure the formerattorney general,JodyWilson-Raybould,tostep in and resolve the corruption and fraud case againstSNC-LavalinGroup Inc.

This pressure is alleged to have come in an effort to spare the Montreal-based engineering and construction giant from criminal prosecution and potentially save thousands of jobs that could be lost from a guilty verdict.If convicted, the company could be blocked from competing for federal government contracts for a decade.

Now, just over three weeks later, Butts is returning to the political playing field, his apparentact of political self sacrifice seemingto havehad no effect on quelling the drama unfolding in Ottawa. As Trudeau strugglesto get ahead of the controversy, Butts can only hope his testimonyat the House of Commons justice committeewill help counter the fallout that has sparked a political crisiswithin the Liberal government.

Indeed, since Butts's departurefrom Trudeau's inner circle of key aides, the ramifications from thisone of the biggest federal political scandals in yearshavecontinued toescalate. If social media is any indication, the controversy is being keenly observed by the Canadian public.

Based on data shared with CBC News by Twitter Canada, on the dayWilson-Raybould testified, the volume of conversation using the #cdnpoli hashtag was the second highest ever, exceeded only by the October2015 election.

Hottest ticket

Last week'stestimony ofWilson-Raybould before the justice committee was the hottest ticket in Ottawa in recent memory, and certainlysince theSNC-Lavalinscandal broke. But Butts's appearance todayis a closerunner-up. While the committee willhear again fromPrivy Council Clerk Michael Wernick, and Nathalie Drouin, deputy minister of justice and deputy attorney general, Butts is the main event.

His appearance comes just two days after the shocking resignation of JanePhilpott, a key and highly respected minister, who stepped down from her post as Treasury Board president, saying she had "lost confidence" in how the government has dealt with theSNC-Lavalincaseand in "how it has responded to the issues raised."

WATCH |CBC's Salimah Shivji explains what to watch for in Wednesday's testimony

SNC-Lavalin: 3 things to watch for in Gerald Butts testimony

6 years ago

Duration 2:17

Trudeau's principal secretary expected to bring documents and talk dates before House judiciary committee.

Butts hadinformedcommittee chair, Liberal MP AnthonyHousefather, that after watching the testimony ofWilson-Raybould, he believed hisevidence "will be of assistance to the Justice and Human Rights Committee in its consideration of these matters."

As principal secretary, Butts remained behind the scenes, speaking to reporters on background but not for attribution. However,he was particularly outspoken on Twitter, where hewould engage with, or lash out at critics andjournalists,promote and champion the Liberal Party and defend his former boss.

Trudeau has repeatedly stated that he disagrees withWilson-Raybould'scharacterization of events, and that he makes no apologies for trying to save jobs. But some Liberal MPs have expressed concerns that Butts, to defend his actions and those of the prime minister,may revert to hisattack dog Twitter persona,the ever loyal political servant launching a full throttled counter-attack.

'Categorically' denies political interference

In his resignation statement, Butts "categorically" denied the claims of any attempt atpolitical interference, saying that "any accusation that I or the staff put pressure on the attorney general is simply not true."

These words, however, are at odds with the testimony of Wilson-Raybould, who claimed thatButts, along with the prime minister and other senior government officials, were involved in the"consistent and sustained effort" to pressure her to intervene in theSNC-Lavalincase.

Butts will have to answer, or want to clarify, accusations thatwithinthose conversations there were "express statements regarding the necessity of interfering in the SNC-Lavalin matter, the potential of consequences, and veiled threats" if Wilson-Raybould didn't acquiesceto the prime minister's wishes.

SNC-Lavalinhad hoped that itsfraud and corruption chargescould be resolved with what's known as a deferred prosecution agreement (DPA), whichwould spare the company a trialand possible criminal conviction.But inOctober,thePublic Prosecution Service of Canadadetermined SNC-Lavalin hadnot met the criteria for a DPA.

Wilson-Raybouldtestified that despite pressure from top government officials, she hadmade up hermind on SNC-Lavalin and was not going to interfere.

Butts will likely address, or face questions, about at least three meetings Wilson-Raybould raised during her testimony.

'He does not like the law':The Chteau Laurier meeting

Butts will likely give his side of events regarding a meeting he had withWilson-Raybouldon Dec. 5, 2018,at the famous Chteau Laurier hotel in Ottawa. She had met with Butts, she testified, to speak with him, in part about"the barrage of people hounding me and my staff" over the SNC-Lavalin case.

She said she raised with Butts how she needed everyone to stop talking to herabout SNC-Lavalin, that she had made up her mind on the issue andthat "the engagements were inappropriate."

But Butts, she said, stressedhow they needed a solution on the SNC-Lavalinfile and that she "needed to find a solution."

As well, Butts, she said, talked to her about how "the statute was a statutepassed by Harper and that he does not like the law. I said something like, 'That is the law that we have.'"

Wilson-Raybould was referring to the Harper government's 2006 Director of Public Prosecutions Act, which, in an effort to quash political interferencestated that an attorney general canoverrule a decision by the director ofpublic prosecution, but it must be made public.

'Some interference': Meeting with Wilson-Raybould's chief of staff

Butts is also likely to give testimony about a meeting he, along with Katie Telford, Trudeau's chief of staff,had on Dec. 18 last year with Wilson-Raybould's then-chief of staff Jessica Prince.

At the committee hearing, Wilson-Raybould read from what she said was atext conversation between herself and Prince following the meeting.

Prince, according to Wilson-Raybould, said that Butts and Telford were looking for a solution, wanted externalcounsel, preferably a former Supreme Court of Canada judge, to give the then-attorney general an opinion on whether she could review her decision.

Wilson-Raybould said that Prince told them that would be interference. Butts is said to have responded: "Jess, there is no solution here that does not involve some interference."

Butts may also be able to comment, or explain, remarks alleged to have been made by Telford, in which she said that if Wilson-Raybould was nervous about revisiting her decision, "we would of course line up all kinds of people to write op-edssaying that what she is doing is proper."

'Are you questioning the integrity of the prime minister?'

Butts may also be asked whether Wilson-Raybouldwas shuffled out of her role as attorney general because of her intransigence onSNC-Lavalin. Wilson-Raybould said she raised those concerns with both Trudeau and Butts about this issue but they denied that was the case.

In a conversation with Butts, she said she "specifically said that 'I know this has to do with SNC and a decision that I wouldn't take,' to which he said: 'Are you questioning the integrity of the prime minister?' I didn't say anything to that."

How to watch Wednesday's testimony

CBC News will have full coverage of Gerry Butts' testimony at the Justice committee:

• A specialPower & PoliticswithVassyKapelosbegins at 10 a.m. ET on CBC News Network.

• WatchPower & Politics'special coverage oncbcnews.ca,YouTube,TwitterandFacebookat 10 a.m. ET.

• Follow our liveblogand updated stories atcbc.ca/politicsat 10 a.m. ET.

• Tune in toWorld at 6on CBC Radio One andThe Nationalat 10 p.m. on CBC Television for more news and analysis on the day's events.