N.S. Liberal officials say party acted above board in misuse of public funds case – Halifax

The Nova Scotia Liberal Party say its handling of a case in which thousands of dollars in public funds were misused by a former employee was “above board” and legal.

Several top officials, including party leader Zach Churchill, appeared before a legislature committee today to speak to a February report on the matter by the province’s auditor general.

In her report, Kim Adair called on the RCMP to investigate the party’s “apparent concealment” of the misuse of funds.

Joseph Khoury, who was party president when the theft was discovered in December 2020, says the Liberal association quickly obtained legal counsel when it learned money was missing.

Khoury says the party followed the advice of its lawyers and forensic auditors and was able to successfully recover $194,000 — a figure that includes the missing funds and the investigative and legal costs.

He repeated his assertion that the auditor general misinterpreted the facts of the case, adding that he wasn’t interviewed by Adair’s office until 13 months into the investigation.

But Adair told reporters after the hearing today that she stands behind her report.

This report by The Canadian Press was first published April 3, 2024.