Did nothing wrong, N.L. legislature director tells court

Theman at the centre of Newfoundland and Labrador's legislative spending scandalis maintaining in court that he has done nothing wrong.

Bill Murray, former director of financial operations at the house of assembly, responded to a statement of claim brought against him by the Newfoundland and Labrador government.

In a statement of defence filed with Newfoundland Supreme Court, Murray says he did nothing illegal, and had nothing to do with the $1.6 million that had been paid to five politicians in excessive constituency allowances.

The Crown filed a breach of trust suit against Murray this spring, arguing that he had shown "reckless disregard" for the financial rules of the house.

The suit is based on reports filed last year by Auditor General John Noseworthy, who uncovered a system with few apparent checks and balances in legislative spending.

The Crown has argued that Murray "signed or approved virtually 100% of the [constituency allowance] claims," and also played a key role in more than $2.6 million in untendered payments made to several private companies, one of which is tied to Murray himself.

The government maintains Murray was suspended in June 2006, when Noseworthy began releasing the results of an investigation that shook political circles to their core.

However, Murray maintains that he was not actually suspended, as he has been on approved sick leave. (The government does not dispute that Murray was on medical leave.)

In a statement of defence filed last week, Murray said all overpayments identified by Noseworthy were approved by people other than himself.

"The defendant has no knowledge of the findings of the Auditor General or the basis upon which such findings were reached," the claim says.

Murray also argues he "would review and sometimes questions claims by members," but was not in a position to approve them.

Murray 'performed duties faithfully': claim

Murray denies he was in a breach of trust in his job, and also denies that he used his position for personal profit.

The Crown's claim alleges Murray's company, Unique Keepsakes, was paid about $170,000 for untendered work, among companies that supplied the legislature with things like fridge magnets and lapel pins.

Murray, however, suggests that problems at the house were due to poor financing.

"The defendant states that he performed his duties faithfully and to the best of his abilities in an office which was chronically understaffed and where no policy manual existed," the claim says.

Noseworthy's audits led to a wide-ranging review of legislative spending by Derek Green, chief justice of the Newfoundland Supreme Court's trials division.

Released last month, Green's stinging report identified a "broad-based systemic failure" at the house of assembly, from poorly trained staff, to defective administrative policiesand ineffective internal audits.