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Can’t use it, can’t give it away: Liberals’ $2M trust fund in limbo – Metro US

Can’t use it, can’t give it away: Liberals’ $2M trust fund in limbo

The Liberals appear to have a couple million dollars they can’t even give away.

The party used a controversial trust fund for decades to help pay for party operations. But that crashed to a halt last fall when a new NDP law made it illegal to use any of that money for political purposes.

When asked what the Liberals could do with the more than $2-million fund, Justice Minister Ross Landry mused “they could donate it to charity.”

But perhaps not.

Party treasurer David Harris says the Liberal party is governed by two things — the provincial Societies Act and the party constitution.

Neither of those documents mention or authorize donating to charity, according to legal advice the party has received.

For example, the constitution outlines owning, holding, leasing and selling assets to help carry out the objects of the party. But never does it mention, say, giving vast sums of money to the Canadian Red Cross.

“We’ve been told we can’t just hand this off to whoever we want to,” Harris said Saturday at the Nova Scotia Liberals annual general meeting in Antigonish.

What about setting up a scholarship?

“I suspect that might be construed as political,” he said.

The fund was tied to illegal campaign donations in the 1970s, though the party insists all the dirty money was purged from the fund in the 1990s.

New party president John Gillis said Saturday he plans to decide what to do with the fund within the next year.