OTTAWA 鈥� Senator Mac Harb set up an elaborate, long-term scheme to cheat taxpayers, which allowed him to pocket hundreds of thousands of dollars in fraudulent housing and living expenses claimed on an 鈥渦ninhabitable鈥� home, RCMP allege in an affidavit filed in court on Thursday.
The document lays out for the first time the Mounties鈥� criminal case against the former Liberal senator, who is being investigated for allegations of breach of trust.
Three months after Harb was named to the Senate in September 2003, he purchased a home in Cobden, Ont. The town is 123 kilometres from Ottawa, which entitles Harb to collect housing and living expenses from the Senate. (Senators can claim an annual allowance of up to $22,000 if their primary residence is more than 100 kilometres outside of Parliament Hill.)
But the RCMP allege he never lived in Cobden.
鈥淗arb lived in Ottawa when he was appointed to the Senate, and it was only in December 2003 that he purchased a house in Cobden and claimed it as his primary residence," wrote lead investigator RCMP Cpl. Greg Horton.
"By all accounts, that house was largely uninhabitable for the first three years that he owned it due to demolition and reconstruction," he said.
The RCMP wrote that Harb鈥檚 neighbours 鈥� Larry Mulligan and Lisa Clark 鈥� rented the pasture land at the property prior to Harb buying the home, and continued to do so for three or four years after Harb鈥檚 purchase.
鈥淗e did not live there, no he didn't. It was apparent he didn't live there, just because he was never there,鈥� Clark told CTV News.
Clark kept cattle on Harb鈥檚 pasture, and she said she often had to reset the electrical breaker in the basement so that his cattle could receive water from the well.
鈥淭he house was prone to being hit by lightning just because it's up on a hill, so when there was a storm, quite often it would throw the breakers,鈥� she explained. 鈥淎ll the electrical was in the house, so we would go in . . . and set the breakers straight and the well would work again.鈥�
Harb 鈥渨asn't there to do it,鈥� Clark said, adding that Harb had given her his cell phone number in Ottawa if they needed to reach him.
The RCMP noted that if anyone was living in that home, they would have reset the breaker themselves.
Mounties also wrote that a new drinking water well wasn鈥檛 installed until May 2006, since the old well couldn鈥檛 support a family living in that home.
鈥淚f the well couldn鈥檛 support a family, it is unlikely that Harb used it as a primary residence up to that time,鈥� Horton wrote.
RCMP investigators interviewed close to a dozen people in and around the Cobden area last month as part of its criminal probe.
A cleaner hired by Harb to clean his Cobden home told the RCMP that 鈥渋t took her a week to clean the residence as it was quite dirty with dust and dead flies,鈥� the investigator noted. 鈥淪he did not believe the residence had been lived in for some time.鈥�
An insurance agent who visited the home in 2007 gave police these notes: 鈥淗ouse doesn鈥檛 have much furniture. . . . House needs a good cleaning. A lot of bird s--t in the basement. A lot of mouse traps have been set. . . . Not lived in full time.鈥�
Harb owned 0.01 per cent of the home
In October 2007, Harb sold 99.99 per cent of the ownership of the Cobden home to Magdalene Teo, then the Brunei high commissioner to Canada. Harb maintained a 0.01 per cent of the stake in the property, but still claimed it as his primary residence so he can continue to collect a Senate housing allowance.
The RCMP says 鈥渁dditional investigation will be conducted鈥� on this unusual transaction.
鈥淭he relationship between Teo and Harb has not been determined by investigators on my team, nor is it clear why Harb maintained a .01% interest in the residence,鈥� the affidavit said.
Teo, who is now the Brunei ambassador to China, refused to meet with or speak to RCMP investigators.
鈥淭eo has refused to speak to investigators about this situation, and states that Harb paid the mortgage for her as 鈥榬ent鈥� between 2007 and 2011,鈥� the RCMP wrote. 鈥淲ithout further details, this explanation lacks credibility.鈥�
Harb sold the Cobden home in 2011 after buying a house in nearby Westmeath, Ont., which is also more than 100 kilometres away from Parliament Hill. He declared this as his primary residence with the Senate, again allowing him to claim the $22,000 per year housing allowance.
One neighbour who spoke with RCMP investigators alleges Harb was 鈥渟eldom seen鈥� in Westmeath and was 鈥渘ot part of the community.鈥� One Westmeath mail carrier told police there 鈥渉as never been any mail addressed to Harb鈥檚 residence until recently,鈥� but it couldn鈥檛 be delivered because Harb doesn鈥檛 have a mailbox.
Thursday鈥檚 details were contained in a production order, or a court order to turn over information, seeking records and billing statements from the Senate related to Harb鈥檚 expense claims.
The Mounties have requested all of Harb鈥檚 cellphone and corporate credit card records from the Senate since September 2003, when Harb was appointed to the Red Chamber.
Harb is one of three senators being investigated by the RCMP.
The RCMP laid out its criminal case in June against Sen. Mike Duffy, who is being investigated for allegations of breach of trust and fraud against the government.
Sen. Patrick Brazeau is being probed for similar offences to Harb.
