NDP ethics critic Charlie Angus is calling for the federal ethics commissioner to investigate whether David MacNaughton, Canada’s former ambassador to the U.S., has broken rules on post-employment conduct in his new roles at data-mining company Palantir Canada and pipeline firm TC Energy.
Talking Point
NDP MP Charlie Angus wants the federal ethics commissioner to investigate David MacNaughton’s roles with Palantir Canada and TC Energy, and his continued communication with ministers and staff in the Prime Minister’s Office. In a letter to the watchdog, the party’s ethics critic said he’s concerned the former Canadian ambassador to the U.S. is breaking conflict of interest rules on post-public service employment.
In a letter to the watchdog Wednesday, the Ontario MP said he’s concerned MacNaughton may not be adhering to requirements under the Conflict of Interest Act that he not “take improper advantage” of his previous public position and not accept a board appointment at a company with which he had “direct and significant official dealings.”
MacNaughton co-chaired the Liberal Party’s campaign in Ontario in the 2015 federal election, and was named ambassador in January 2016. He left the post in August 2019 to become Canadian president of Palantir, a U.S. tech company whose work with police and immigration agencies has been controversial.
As The Logic reported last month, MacNaughton told a private event that Palantir was doing pro bono work with Ottawa on its response to the COVID-19 pandemic. Innovation Minister Navdeep Bains then testified at a parliamentary committee that the former ambassador had “engaged with many” in the federal government, offering “solutions and ideas on how to help Canadians.”
MacNaughton was also recently elected to the board of TC Energy. The Calgary-based company’s projects include the Keystone XL pipeline across the U.S.-Canada border, and Coastal GasLink in British Columbia, which was the subject of Indigenous protests earlier this year.
The Conflict of Interest Act bars former public office holders from taking “improper advantage” of their former positions, from acting on a company’s behalf on any issue on which they previously represented or advised the government, and from using non-public information they received while in office. For a year after leaving public office, they can’t make representations to federal departments or agencies with which they had contact on government business, or work for anyone they dealt with in that capacity. The Lobbying Act, meanwhile, requires ex-officials to serve a five-year lobbying ban.
After The Logic’s report, MacNaughton told Politico he is “absolutely” in contact with cabinet ministers and staff in the Prime Minister’s Office, but to discuss policy, politics and U.S.-Canada relations. He also said he has not lobbied on Palantir’s behalf. Neither the former ambassador nor the company is registered to lobby the federal government. Last week, Angus wrote to lobbying commissioner Nancy Bélanger, asking her to look into their conduct.
In an interview with The Logic, Angus said that while it’s not clear whether MacNaughton is speaking to senior political officials about Palantir, “it is inappropriate that he is meeting with them at all, as the president of a major corporation looking to do business with the government.” The firm won an almost $1-million contract with the defence department before MacNaughton joined, and is among 78 companies pre-qualified to bid on federal AI projects. “His comfort level with senior bureaucrats and officials would make them much more comfortable looking at Palantir’s business options,” said Angus.
“Palantir and Mr MacNaughton are aware of the complaint and we take our compliance obligations seriously,” said Lisa Gordon, a company spokesperson. “We have reached out to the Ethics Commissioner to offer our full cooperation in reviewing and disposing with the complaint.” She did not answer The Logic’s questions about the specific claims Angus made in the letter.
Jocelyne Brisebois, a spokesperson in the office of ethics commissioner Mario Dion, said the regulator could not comment on whether MacNaughton has sought its guidance on his post-employment conduct, or whether it is investigating him, citing confidentiality requirements.
Angus is also concerned about MacNaughton’s TC Energy directorship. “Keystone [XL] was one of the fundamental projects driving Canadian-U.S. relations during his tenure,” he said. “This is a project that he would have been very, very highly briefed on, and know all the players.”
According to the federal lobbyist registry, TC Energy’s last communication with MacNaughton as ambassador was in March 2017, several months before he began his final year in office. Global Affairs Canada repeatedly declined to provide details about that period. “The information you have requested is not readily available,” said spokesperson Sylvain Leclerc, suggesting The Logic file an access-to-information request instead.
“TC Energy did not have direct and significant official dealings with Mr. MacNaughton for the one year period before he retired as ambassador,” said spokesperson Jaimie Harding, adding that both intend to comply with their legislative obligations, and that the firm’s directors recuse themselves when a conflict of interest is declared. MacNaughton “brings an important perspective on government and policy and will provide valuable contributions during his tenure as a director.”
In December 2019, former cabinet minister Jane Philpott said Dion had refused to waive her cooling-off period to allow her to take a paid advisory role with the Nishnawbe Aski Nation. Given that example, Angus questioned how it was “possible for the ambassador in charge of [representing Canada on] one of the biggest energy projects in recent memory to now go represent the company at the board table.”
Prime Minister Justin Trudeau’s office did not answer The Logic’s questions about whether he or any of his staff have communicated with MacNaughton since he left his role as ambassador. “David MacNaughton stood up for Canada, helping lead the successful renegotiation of NAFTA—the most difficult and uncertain trade negotiations Canada has ever faced,” said PMO spokesperson Alex Wellstead. “We thank him again for that.”