Minister of Intergovernmental Affairs Peter Penashue resigns, blames “inexperienced volunteer”

Federal intergovernmental Affairs Minister Peter Penashue has resigned his post and is stepping down as an MP for accepting ineligible donations during the 2011 election campaign.

"Due to mistakes that were made by an inexperienced volunteer in filing the Elections Canada return from the last campaign, I appointed a new Official Agent to work with Elections Canada to make any needed amendments to my campaign return," the Tory MP wrote in a statement, released on Thursday afternoon.

"During the examination we became aware that there were ineligible donations accepted by the former Official Agent."

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Penashue was called-out by Elections Canada in October, for exceeding his campaign spending limit by over $4,000.

CBC News, however, has reported that he overspent by much more and that the ineligible contributions may have included corporate donations which are illegal in Canada.

"A spokesman for the Conservative Party says Penashue has "reimbursed the Receiver General [the federal government] for the ineligible contributions received" and confirmed that they added up to $30,000," they claim.

According to Penashue's statement, he will run in a by-election in an attempt to keep his seat. In the 2011 election, he beat out Liberal incumbent Todd Russell by only 79 votes.

The prime minister's office released a somewhat curt statement thanking Penashue for his service and noting that Transport Minister Denis Lebel will take on the role of Intergovernmental Affairs Minister.

Penashue is the second Harper cabinet minister to resign in the past month.

Last month Aboriginal Affairs Minister John Duncan stepped down after he inappropriately wrote a letter to a tax court on behalf of a constituent.

Duncan, however, remains as an MP.

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Here is Penashue's full statement:

"Due to mistakes that were made by an inexperienced volunteer in filing the Elections Canada return from the last campaign, I appointed a new Official Agent to work with Elections Canada to make any needed amendments to my campaign return.

During the examination we became aware that there were ineligible donations accepted by the former Official Agent.

Although I was unaware of the inaccuracies in the return, I believe I must be accountable to the people who elected me and therefore I am stepping down as the Member of Parliament for Labrador and will seek re-election through a by-election. I will also be stepping down as Minister of Intergovernmental Affairs and President of the Queen’s Privy Council for Canada.

My record as Member of Parliament for Labrador and Minister in Prime Minister Stephen Harper’s Conservative government over the past two years is one that I am very proud of.

I have worked to secure federal support for the development of Muskrat Falls, which will lead to $1.9 billion for our economy and thousands of jobs for Labrador. I have also worked with government and private industry to increase internet speed in Labrador, and delivered federal funding to pave the Trans-Labrador Highway.

There is much more to do for the people of Labrador, including protecting our way of life. We have scrapped the long-gun registry despite the efforts of the NDP and Liberals to keep it, and now we must continue to fight to defend the seal hunt against the NDP and Liberal parliamentarians who want to ban it. I will also continue to lead the defence of the polar bear hunt, something that is very important to Labradorians.

In the by-election I will be asking the people of Labrador to re-elect me so that I can continue to deliver for Labrador.”

(Photo courtesy of the Canadian Press)

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