Canada's Trudeau government rocked by second resignation

The resignation of Jane Philpott, who was recently appointed as the Treasury Board President, cost Trudeau another cabinet minister, ahead of federal elections that polls are showing he could lose.

Philpott expressed her unhappiness with the government's response to allegations that officials inappropriately pressured former justice minister Jody Wilson-Raybould last year.

In a statement Philpott said: "Sadly, I have lost confidence in how the government has dealt with this matter and in how it has responded to the issues raised."

Wilson-Raybould resigned in February amid allegations senior officials had pressured her to help major construction company SNC-Lavalin Group Inc avoid a corruption trial, when she was justice minister. 

More resignations

The Canadian prime minister's Chief Secretary, Gerald Butts, also resigned last Monday amid the SNC-Lavalin controversy. Butts, Prime Minister Justin Trudeau's principal private secretary and a key architect of the Liberals' 2015 election victory, said that he did not pressure the former justice minister to help the construction firm.

Butt had refuted the allegations over the controversy in a statement last Monday, saying that that it was not true that "I or the staff put pressure on the Attorney General, Wilson-Raybould".

Trudeau faces criticism as the resignations continue to reach those closest to him and the allegation could dominate his election bid later this year.

How did Trudeau react to resignations and the scandal?

During a Liberal Party rally in Toronto, Trudeau expressed his disappointment over Philpott's resignation but said he understood her reasons for leaving the Cabinet.

"Concerns of this nature must be taken seriously and I can ensure you that I am,” said Trudeau in his address. He did not state the specific reason for Philpott’s resignation. Furthermore he thanked her for serving in his Cabinet.

Commenting on Wilson-Raybould's recent resignation, Trudeau said that he was “both surprised and disappointed by her decision to step down”, as her resignation was “not consistent” with their recent conversations.

He went on to add: “I to be honest don't really entirely understand why Jody Wilson-Raybould made the decision that she did.” On her resignation he said: “I continue to be puzzled.”

When Butts resigned, Trudeau accepted his decision and said he had served the country with “integrity, sage advice and devotion”.

With regards to the SNC-Lavalin scandal, Trudeau has sided with the statements against the allegations.

He has denied any wrongdoing, and said that officials acted “in a way that has respected our laws”. He added: “Canadians expect their government to look for ways to protect jobs, to grow the economy, and that's what we have done.”

However, Nanos Research pollster Nik Nanos said: “What should be worrisome for the Trudeau Liberals is that the two Cabinet resignations have been on issues of principle and ethics.” 

The SNC-Lavalin firm behind the scandal

Four years ago, Montreal-based engineering company SNC-Lavalin was charged with fraud and bribery in relation to its dealings with the regime of Libyan dictator Muammar Gaddafi. 

The Royal Canadian Mounted Police had accused the firm of paying nearly CA$48 million (US$36 million) in bribes. The police had also claimed that the Canadian company defrauded the Libyan government and several of its agencies of CA$129.8 million (US$97 million).

SNC-Lavalin denied the charges in 2015 with a statement on its website saying: "The company firmly considers that the charges are without merit and will vigorously defend itself.”

In response to the controversies, SNC-Lavalin said it was seeking to avoid a corruption trial since the executives accused of misbehaviour had left the company and the firm had repaired its ethics and compliance systems.