Guergis allegations 'ridiculous boasts': lawyer

The allegations against MP Helena Guergis are nothing more than "ridiculous boasts" made by a businessman facing fraud charges, the lawyer representing the former Conservative cabinet minister said Thursday.

Lawyer Howard Rubelsaid he and Guergis have finally learned what allegations led Prime Minister Stephen Harper to kick her out of the Conservative caucus last week and refer the matter to the RCMP.

Rubel did not disclose the allegations. But media reports named Derrick Snowdyas the private investigator whotoldConservative Party officials that a probeinto Toronto businessman Nazim Gillani uncovered allegations of cocaine use and stock fraud involving Guergis and her husband, ex-Conservative MP Rahim Jaffer.

AToronto Star report saysGillaniclaimed to Snowdy that three offshore companies in Belizehad been "reserved" to hold cash for Guergis and Jaffer.

The Star alsoreported Snowdy as saying he told a Conservative Partylawyer that Gillani boastedhe had cellphone pictures of Jaffer and Guergis "partying" with high-class escorts when cocaine was being snorted.

In an email to CBC News and other media organizations Thursday,Rubel wrote that the source of the allegations is "a report from a private investigator who, apparently while presenting himself as another potential victim of a man currently facing fraud charges,was told these ridiculous 'boasts' in an attempt to convince the investigator to do business with him."

"We believe these circumstances speak for themselves," Rubel wrote.

Guergis"vigorously denies all of this man's bizarre claims, and looks forward to helping the RCMP demonstrate that they are completely false," her lawyeradded.

Neither thePrime Minister's Office nor any member ofthe Conservative governmenthas released details about the allegations that led to Guergis's resignation from cabinet andexpulsion from the Torycaucus late last week, except for the fact they came from a "third party."

PMO spokesman Dimitri Soudas said Harperimmediately turned over the"serious and credible allegations" against Guergis to the RCMP and the ethics commissioner once he learned of them. He also saidGuergis was toldof the allegations against her last Friday.

MPs question Guergis'sCentral Americatrip

The Liberals have accused Harperofignoring allegations thatJaffer usedGuergis's parliamentary offices for lobbying purposes, while also questioning what contact he had with his former Conservative colleagues in Harper's cabinet over a billion-dollarfederal Green Infrastructure Fund. The government has vehementlydeniedJaffer had any influence on any federal funding decisions or the prime minister's inner circle.

During Thursday's question period, opposition MPsgrilled the government on the allegations, asking the Conservatives to confirm whether Jaffer accompanied Guergison aJuly 2008 ministerial trip to Belize and Guatemalawhen she was parliamentary secretaryof Foreign Affairs and Trade.

The government of Canada's website for its embassy in Guatemala displays photographsof Guergis and Jaffer together touring a school and meeting with officials in the region.

Respondingfor the government, Transport Minister John Baird defended Harper's handling of the affair as "beyond reproach," and called onMPs to refer any specific allegations tothe independent lobbying and ethics commissioners.

"The prime minister did the right thing," Baird said.

The House government operations and estimates committee decided on Wednesday to launch its own investigation into Jaffer's dealings and hasrequested heand Guergis testify.

The committee alsosent notices toGillani, Jaffer's business partner Patrick Glemaud, former CFL player and Gillani business partner MikeMihelic, as well as Natural Resources Minister Christian Paradis and Labour MinisterLisa Raitt.

Gillani's spokesman, Brian Kilgore, told CBC News the businessmanhas accepted the invitation to testify in Ottawaon April 28, but would not be commenting for now. Gillani alsohas a court appearance scheduled forApril 21 in Newmarket, Ont.,on a fraud charge.

While some media reportssuggested Snowdy first tried to offer his information to the Liberals, aspokesman for the party told CBC News a receptionist took a call fromsomeonewho said he wasprivate investigator last week, but the call was never returned.

"We dont deal with private investigators," the spokesman said.

When reached by CBC News in Ottawa, Conservative Party lawyer Arthur Hamilton would not confirm or deny media reports citing him as the person who was contacted by Snowdy, orwhether he passed the information on to the PMO.

Guergis probe not requested: ethics chief

Earlier Thursday, ethics commissioner Mary Dawsonsaidshe hasn't received a request to investigateGuergis, despite the Prime Minister's Office saying it sentDawsoninformationabout "serious and credible allegations."

Dawson told CBC Radio's The Current host Anna Maria Tremonti that she has not received an official request from Harper to investigate anything relating to Guergis,who remains the MP for the Ontario riding of Simcoe-Grey.

"I've had one referral from the PM, but it wasn't an official request," Dawson said, adding sheis monitoring the situation by "watching news reports."

Dawson, who previously announced earlier this week she "was not in a position" to investigate Guergis, also said she has the power to initiate an investigation into the MP if she feels she has reasonable grounds.

"But I have very little information at this time," she said.

In an email Thursday morning to CBC News, the PMO's Soudas acknowledgedHarper did notrequest or direct any specific action and did not provide "specific details" of the allegationsto Dawson or the Mounties, buttold themthe source ofthe allegations.

"The referrals to the commissioner and RCMP made clear that the information was second-hand and identified the source of the information for such followup as these authorities felt appropriate," he wrote.

"These authorities are independent and will make their own determinations."

Ina subsequentemail, Soudas wrote thatthe commissioner's office "was briefed on all available details."